Car Written off, Panel Beater Wants to Charge Admin Fee

Lcrashaway on 20/04/2023 - 11:13
Last edited 21/04/2023 - 10:46

My car was recently written off (not at fault accident), the panel beater has since called to ask for payment of $550 prior to salvage and number plate return to account for his time spent on admin including setting us up with an accident claims team (whose costs are covered by the at fault party). Insurance has/will pay out his storage fees, but upon speaking to the claims team they said this is highly unusual and that they can't do anything about it. This fee was only disclosed to us after the process had started when there was an indication that the car could be written off, but not prior to engaging his services.

We are currently waiting for the invoice to understand what he is trying to charge for, but think it is completely unreasonable, is this normal practice?

UPDATE: We told the panel beater we won't be paying, and that the fees associated have been covered by the insurance company including his storage fees. Additionally, the car now belongs to the insurance company and he can't withhold it. He didn't argue but refused to let us collect the plates and said we could get them from the wreckers. Spoke to the wreckers who agreed to send a photo of cut up plates when picked up, and also to vicroads who said we can provide a statement that the car was written off to de-register the vehicle. Hopefully that's the end of that. Thank you all for your advice, we have learned a great deal about what to do in the future!

Automotive

Comments

  • Jimothy Wongingtons on 20/04/2023 - 11:17
    +9

    Kinda weird it wouldn’t be covered by the at faulty drivers team?

    Also do I read this as you going through those suss 3rd party insurance mobs that fix you up and then chase the at fault party people via avenues like debt collectors?

    • crashaway on 20/04/2023 - 11:27

      We were thinking it was strange that it wouldn't be covered by the at fault party's insurance. Surely he could have added it to the storage fee invoice?

      Not quite dodgy, they have been dealing with the at fault party's insurance company on our behalf. Prior to engaging them we had gotten the other party's insurance to admit fault and proceed to tell us to engage a panel beater to start the process. After taking the car to multiple panel beaters, only one would take it as it was close to holidays and it was at risk of being written off. He then said that his clients all go through this motor vehicles claims company which will handle the admin for us at no cost.

      • lppepper on 20/04/2023 - 11:29
        +7

        Seems like they're trying to make a bit of extra cash from you. Surely they're able to charge anything to the at fault party's insurance, is that not what that's for?

        • crashaway on 20/04/2023 - 11:33

          That's what we were thinking, but we've never had a car get written off before, or really had to deal with panel beaters in the past.

    • Xistn on 20/04/2023 - 12:02

      or Sheens for short.

  • deme on 20/04/2023 - 11:33
    +3

    What did your insurance say?

    Also
    https://www.fairtrading.nsw.gov.au/

  • bobbified on 20/04/2023 - 11:34

    ..but upon speaking to the claims team they said this is highly unusual and that they can't do anything about it….

    Which claims team? Your own insurer or the at-fault party's insurer? One way or another (whether it's dodgy or not), it should eventually be covered by the at-fault's insurer.

    • crashaway on 20/04/2023 - 11:36

      Our claims team. The person we spoke to seemed uncertain about it as they hadn't experienced anything like this either.

      • bobbified on 20/04/2023 - 11:37
        +10

        Your insurer should cover it (or dispute it) and then recover it from the at-fault's insurer, if necessary. Basically, any costs should be between the insurer and the panel beater. And if they evenutally sue you for it, your insurer should handle it with their own legal team.

      • pharkurnell on 20/04/2023 - 12:04
        +3

        The person we spoke to seemed uncertain about it as they hadn't experienced anything like this either.

        then get them to escalate it to their manager.

        • Cave Fire on 20/04/2023 - 13:33
          +3

          pretty standard with most Call centres or Customer service in general. Front line staff have limited authority. This usually effects their stats though, so use when needed. Sometimes asking to escalate gets things resolved as well.

  • Leanne59 on 20/04/2023 - 11:34
    +3

    Why would you be involved with the panelbeater, all of this is the responsibility of the other parties insurance or your insurance who would then claim from the at fault parties insurance company. Why did you engage his services?

    • crashaway on 20/04/2023 - 11:38

      We just found a panel beater that had semi decent reviews (4+ stars) so we wouldn't get sent off to the at fault party's insurance company choice of repairer.

      • KaTst3R on 20/04/2023 - 13:02

        Your car is written off, so why would you care if it is their repairer or not? Would it make a difference to your claim?

        • crashaway on 20/04/2023 - 13:42

          We were under the impression that it could be repaired. It was a rear end. Based on the payout and the damage we were actually surprised it got written off.

          • KaTst3R on 20/04/2023 - 13:43

            @crashaway: I see. Thanks

          • OpayuOnam on 20/04/2023 - 15:24

            @crashaway: If you are not at fault, you can push the insurance company to pay for fix.
            At the end of the day it comes down to what you really want, they cannot force you to write off your car.

  • Muzeeb on 20/04/2023 - 11:42

    Do you have comprehensive insurance yourself OP?

    • crashaway on 20/04/2023 - 11:48
      -2

      Yes, but we were reluctant to use it because of the no-claims discount.

      • xis123 on 20/04/2023 - 11:51
        +6

        The no-claims discount still applies to you as you were not the at-fault driver. A no-claim discount (NCD) is a discount on your Comprehensive Car Insurance premium that increases each year you don't make an at-fault claim.

        • crashaway on 20/04/2023 - 11:54

          I wasn't aware. Will keep it in mind for next time. Thanks! Hopefully there isn't a next time though…

      • Muzeeb on 20/04/2023 - 11:51
        +3

        I suggest you use it next time. That's why you pay them. I've never seen anything that confirms that a 'not at fault' claim affects your NCD or premium. Plenty of anecdotal tripe but never in writing.

        Im guessing that the panel beater is trying this one trick because you didn't go via your insurance.

        • crashaway on 20/04/2023 - 11:55

          I was under the impression any claim increased your premiums etc. Thanks!

          • Muzeeb on 20/04/2023 - 11:57
            +1

            @crashaway: Nope. Next you're going to tell me you're with RACV aren't you?

            I've had awesome experience with them with 2 not at fault claims.

            • crashaway on 20/04/2023 - 11:57
              +1

              @Muzeeb: No AAMI. The at fault party is RACV.

            • Adredocto on 20/04/2023 - 16:48
              +3

              @Muzeeb: You premium will increase with any claim, whether at fault or not (happened to me).
              You can see the difference when you modify details in the quote generator

              • lgacb08 on 21/04/2023 - 09:48
                +2

                @Adredocto: Time to switch to another, some don't raise the quote.

                • HelpMeiCantSee on 21/04/2023 - 10:10
                  +1

                  @lgacb08: You will find the wording is “any claims regardless who was at fault” or very similar. It’s not a “have you been at fault” question - which imho it should be!. It’s dodgy as, but insurance companies are not in the game to be nice, kind or even ethical.

          • SteveB00 on 21/04/2023 - 10:53
            +1

            @crashaway: Someone hit my car and their insurance company accepted fault and repaired my car. This claim increased my own insurance premium.

  • JimmyF on 20/04/2023 - 11:48
    +2

    but think it is completely unreasonable, is this normal practice?

    Not sure if it is 'normal' practice or not, but this issue is between the panel beater and the insurance company, not you. So point them to the insurance company.

    Once a car is written off, you basically give ownership to the insurance company to do as they see fit. So it is no longer your car.

    • crashaway on 20/04/2023 - 11:53

      That is looking like the consensus. Will have to go back to both and get them to sort it out between themselves then

      • Muzeeb on 20/04/2023 - 11:55

        Do you have agreed value or market value on your comprehensive insurance and how does this compare to what the other insurance company is offering for payout?

        • crashaway on 20/04/2023 - 11:57
          +1

          Market value. Having said that, the payout was quite generous given the age of the car. We don't think we could have sold it for any more than the payout amount surprisingly.

          • Muzeeb on 20/04/2023 - 11:57
            +1

            @crashaway: That's a great result then other than the inconvenience factor.

  • JimB on 20/04/2023 - 11:55
    +3

    What are they going to do if you don't pay it?

    Repossess the car lol

    Just ignore the letters or forward to your insurance company.

    • crashaway on 20/04/2023 - 11:59

      I'd assume keep the car from getting picked up by the wreckers? and leaving us unable to retrieve the plates to cancel registration.

      • bobbified on 20/04/2023 - 12:03
        -1

        When the insurer pays you out for a write-off, the wreck (usually including the unused portion of the rego) belongs to them. So get your money from the insurer and let them deal with the panel beater for the wreck.

        • crashaway on 20/04/2023 - 12:08

          We've received a partial payout excluding the salvage amount ($600). The salvage amount will be paid directly to us after pick up of the car from the panel beater.

          • JimB on 20/04/2023 - 12:13
            +2

            @crashaway: Sounds very odd. Who's the insurer?

            Usually your insurer deals with it all.

            In the event of a write off, you'd only go back to the panel beater to retrieve any personal belongings and have no other contact with them.

            Time to start calling the insurer's complaint line.

          • bobbified on 20/04/2023 - 12:14
            +1

            @crashaway: Earlier on, you said you were dealing with "our insurer" (which you said later is AMMI), but lower down, you also said you were reluctant to deal with your own insurer because it might impact your NCB. So are you dealing with your own or their insurer? Did you get paid directly by the the at-fault's insurer (RACV) or did you get paid by your own (AAMI)?

            If you're dealing with your own insurer (ie, AAMI), get them to deal directly with the panel beater for the wreck. They will then collect it and charge the costs to the at-fault's insurer. That's what you pay them for.

            Whoever it is that is asking you to collect the wreckage - ask them how they expect you to do that and whether you should get it dropped off in front of their office! lol

            • crashaway on 20/04/2023 - 12:21

              @bobbified: Sorry about the confusion, We're dealing with a third party claims company who are dealing with RACV. We engaged them as the panel beater had said all his clients use them and that it wouldn't cost us anything out of pocket as we were not at fault. My understanding is they pass their fee on to the at fault party's insurance. It's gotten messy and now I'm wishing we took the easy route of going through AAMI… Live and learn I guess

              • bobbified on 20/04/2023 - 12:23

                @crashaway: It does sound a bit messy at the moment - you could always call AAMI and ask them for advice without formally lodging a claim. And if you eventually decide it's best to proceed through AAMI, you wouldn't need to pay the excess amount (because it's a recoverable claim).

              • Muzeeb on 20/04/2023 - 13:10
                +4

                @crashaway:

                the panel beater had said all his clients use them

                All his clients that don't have insurance. Never trust a panel beater (as you've discovered)

  • Euphemistic on 20/04/2023 - 12:57
    +2

    Stand your ground, it’s not for you to pay anything in this situation. The at fault insurer should cover everything, if that doesn’t work, talk to your own insurer.

    Lesson from this: third party claims company just complicates things. Deal with their insurer or your own only.

  • altomic on 20/04/2023 - 13:13

    Did you sign any kind of contract with the panel beater?

    • crashaway on 20/04/2023 - 14:06

      This was a while ago, but from memory it was a sign off to him for repairs? Nothing in it that mentioned fees in the event of a write off…

  • xuqi on 20/04/2023 - 13:16
    +2

    My dad used to own/run a panel beating business many years ago. Can't think of ever charging someone an 'admin fee' in such an instance.

    Never heard of any other company doing so either so I would let insurance sort it out, and definitely don't pay anything yourself.

    Suggest contacting VACC (Victorian Automotive Chamber of Commerce) for further info / guidance.

    https://vacc.com.au/About

  • zathras on 20/04/2023 - 13:53
    +2

    I would tell him to negotiate with the insurance company from now on as they own the wreck. If they don't pay its his problem. If he never made clear all his "admin fees" early on and you never agreed to them he has nothing to chase you for. Well, that is of course assuming you never signed some sort of contract with him which has all is fees in the fine print….

    What can he do, not release the vehicle? That won't be your problem. The insurance company lawyers would go into battle with his lawyers.

  • garetz on 20/04/2023 - 16:02
    +1

    This is not your problem, he has no leverage, and the fee seems unreasonable. As others have said if this wasnt made clear from the jump then he is trying to scam you.

  • Venustrap87 on 20/04/2023 - 17:13
    +1

    Tell him to get stuffed and let the insurance deal with it

  • ifyareckon on 21/04/2023 - 05:32
    +2

    You won't need the plates to cancel the registration. When we had a written off vehicle the letter confirming the write off from insurance was enough for VicRoads to cancel it. Let them keep the plates and cancel regardless.

    https://www.vicroads.vic.gov.au/online-services/help-centre/…

    • kerfuffle on 21/04/2023 - 07:31

      Same thing in NSW. (Also dunno about Victoria, but NSW charge $30 to cancel your rego)

  • 82norm on 21/04/2023 - 08:55
    +6

    I can never figure why people pay comprehensive car insurance and not use them. This being a classic. Number one rule, you don’t lose your NCB if not at fault. Secondly, even if you were at fault and you’ve been with company X for X years, they generally give you a get out of jail free card without impacting your next year’s premium. This applied to me being with AAMI for yonks. Talking about creating a rod for your own back geez…

  • CodeXD on 21/04/2023 - 09:16
    +4

    Sounds like they're trying to double dip by receiving money from insurance company as well as you.

  • StingyBritches on 21/04/2023 - 09:47
    +3

    OP, I've spent considerable time on admin both reading your post and the comments that followed.

    For my time spent on admin including setting us up this response, I will require a payment of $550 before I can release my full, high-educated, comprehensive response.

    • crashaway on 21/04/2023 - 10:46
      +1

      Thanks for the laugh :D

  • thenavman on 21/04/2023 - 11:12
    +3

    Most of us who have comprehensive insurance pay decent coin for it. Make your insurance provider sort it out. That’s the whole point of paying for insurance.

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