Car-Crash Not at Fault - Car Written off

kamac93 on 15/02/2024 - 19:55
Last edited 15/02/2024 - 20:29 by 1 other user

Hi all, my mother was in a minor car accident, where someone hit her and her brand new Corolla with 150kms has been written off.

The final purchase price was about $42,000.00 with additional window tinting and paint protection added by a different company for $1,500.00, totaling $43,500.00.

Currently with AAMI insurance, the other at-fault car was with RAC.

The insurer cannot find a similar (Brand New) metallic colored Corolla (we had to wait ~8 months, delivered in Nov 2023), and has offered a payout of what she was insured for, which is $39,000.00 - obviously wasn't expecting an accident right away, and would've been acceptable if she was the one at-fault.

According to the T&C's of AAMI, although she is not at fault, they will only offer a cash payout of the insured $39,000.00 and not the purchase price of $43,500.00 (which I find absolutely BS).

Otherwise she can try and decide on another vehicle they can try and replace this with. I'm thinking a VW Golf etc. Something with good resale value and just general overall reliability of a Toyota (e.g. no Kia, Hyundai etc). Likelihood these will probably also not be readily available.

Just wondering on people's opinions and if anyone has been in a similar situation?

Take the cash or try to find a VW Golf/Toyota Yaris Cross/Toyota CH-R

Thanks!

Automotive Car Toyota

Comments

  • kerfuffle on 15/02/2024 - 20:05
    +28

    If it's a minor car accident, how is it a write-off? Guessing your mum bought a SX going by the price.

    Also purchase price includes stamp duty and dealer delivery fee, which you aren't going to get paid out for should your car get written off.

    • Baysew on 15/02/2024 - 20:14
      +3

      It seems they do -

      We also pay for:
      the initial registration Compulsory Third Party (CTP) cover delivery charges, and stamp duty costs.

      Probably one of those accidents that don't seem severe, but car is an economic write off.

      • kerfuffle on 15/02/2024 - 20:15
        -1

        Yeah except OP is saying they won't do New for Old as they can't find anything and is offering a payout instead

        • Baysew on 15/02/2024 - 20:17
          +3

          They can't do a Corolla, but New for Old offer still there.

          Otherwise she can try and decide on another vehicle they can try and replace this with.

      • cloudy on 15/02/2024 - 21:20
        +4

        Probably one of those accidents that don't seem severe, but car is an economic write off.

        I think the question - also on my mind - is what kind of accidents are those?

        • Baysew on 16/02/2024 - 00:56
          +1

          Minor in the sense of no injuries to their Mum, which is probably OP's first thought, but perhaps too many damaged parts and panels to be repaired or replaced in a reasonable time frame.

          Perhaps read it without the word "minor".

          I'm guessing that the issue is AAMI insure for the agreed value of $39,000 which doesn't include CTP, Rego, Delivery Costs and stamp duty. However, under their "New for Old" replacement condition they will -

          Once the claim has been lodged and accepted as a total loss, our specialists at AAMI attempt to find a new car of the same make and model as yours within 90 days. If the same model is not available, we’ll offer you a car that is a similar make and model – including any similar accessories, modifications, tools and spare parts.

          But in the OP's situation they can't find a comparable Corolla (which had an eight month wait) they will only offer a similar make/model or the sum insured which is $3k less.

          So the OP's question is to take the cash or nominate something similar?

    • aussieprepper on 16/02/2024 - 23:09

      Car is to new and no spares are available so they would have to pay retail from Toyota or whoever and it will cost more. Sometimes when cars are fixed second hand parts are used to save costs.

    • cuteseal on 18/02/2024 - 16:10
      +1

      Just beware as well that they deduct the insurance premium on any payouts as well which is a bit of a crock. So if OP’s mum just took out a new policy she would forfeit the remainder of the premium if she paid up front or if paying in arrears then the remainder will be deducted from the payout.

      • BlueGlass on 19/02/2024 - 20:34
        +1

        They really are scumbags, they treat you like an idiot when you ask for a refund for the rest of the policy duration.

        • jackspratt on 19/02/2024 - 21:55

          How so - if the policy is for a year, and they pay out during that year, surely they are entitled to the premium for that year?

  • boomramada on 15/02/2024 - 20:08
    +56

    what she was insured for, which is $39,000.00

    Well thats answered your own question.
    Best you can do is ask for more based on current markets. That doesn't mean they have to.

    • Munki on 16/02/2024 - 10:06
      +2

      Try getting blood out of stone first.

    • CrushJelly on 17/02/2024 - 18:46
      +1

      Yep. Classic case of being underinsured.

      When will people realise that you can't rely on the "new for old replacement" policy if they can't find a new one in a reasonable timeframe.

      The insurance company WILL default to paying the policy holder out, and if you've underinsured the value of the car, then you're SOL.

    • cute as duck on 16/02/2024 - 18:43
      +1

      Yeah, that's not going to work.

      Car was insured for $39K, and that's what they are offering.

  • Jaduqimon on 15/02/2024 - 20:13
    +50

    did she insure for for agreed value 39k or market value and AAMI determined the market value to be 39k?

    if she insuired for 39K agreed value then thats all shes gona get. if its market value then you have a potential case

  • brad1-8tsi on 15/02/2024 - 20:26
    +69

    Why did she insure it for less than the purchase price?

    LOLing at the VW Golf statement "good resale and reliable".

    • jackary on 15/02/2024 - 21:20
      +35

      And apparently Hyundai and Kia are neither of those things!

        • jackary on 15/02/2024 - 21:39
          +32

          You’re wrong, but OK.

            • pegaxs on 15/02/2024 - 22:02
              +42

              @kamac93: Literally none of them drive VW’s though… and for good reason… they are at the total opposite end of the “reliability” spectrum to Toyota.

              • brad1-8tsi on 15/02/2024 - 22:27
                +21

                @pegaxs: I'm on my 3rd "modern era" VW group product.

                I love driving them and can accept the dubious reliability & crap resale.

                Would I recommend my Mum, my kids, ex-wife or a good friend buy one? No way.

                Conversely, I have friends and relatives that have Kia & Hyundai product and they are all very happy with the reliability. They seem to be good cars.

                • Randolph Duke on 17/02/2024 - 10:01
                  +3

                  @brad1-8tsi: You wouldn’t recommend one to your ex-wife?

                  • brad1-8tsi on 19/02/2024 - 13:17
                    +3

                    @Randolph Duke:

                    You wouldn’t recommend one to your ex-wife?

                    Nah. She's the mother of my children and not a bad person and the kids drive her 2016 Kia Cerato (which the ex thinks is great) a lot.

                    It's wasted emotion and bad for your health to be cranky with people forever.

            • jackary on 15/02/2024 - 22:27
              +6

              @kamac93: Okay, pal, chief, cobber.

                • jackary on 16/02/2024 - 18:21
                  +8

                  @kamac93: Nobody hurt me, I’ve just never heard a “I’ll buy a VW instead of a Hyundai/Kia because the VW is more reliable” perspective

                  And I’ve owned several of both!

                  I’ve loved each of my VW’s, but because they were interesting or different… not because they were reliable.

                  Wasn’t trying to be rude to you, just matching your energy.

              • Daabido on 16/02/2024 - 23:48
                +3

                @jackary: I’m not your friend, buddy.

                Daabido on 16/02/2024 - 23:48 (Collapsed - Offtopic. Show)
            • Ghost47 on 15/02/2024 - 22:28
              +7

              @kamac93: Reliability aside, you do realise that VW will cost more to service right? Is your mum willing to shell out more for servicing over the long term? And it'll require premium fuel, is your mum happy to pay the price for premium?

              If she's fine with it then whatever, but if she complains don't say we didn't warn you.

            • Franc-T on 16/02/2024 - 03:49
              +3

              @kamac93: Because Toyota have a leasing arrangements with Uber, the hybrids especially are nice and cheap to run.

            • brad1-8tsi on 16/02/2024 - 16:19

              @kamac93: Is that like prison "champ"?

        • Franc-T on 16/02/2024 - 03:54
          +1

          Hyundai/Kia have long warranties for a reason.

          Whilst not a perfect survey, this gives you an idea:

          https://www.jdpower.com/business/press-releases/2023-us-vehi…

          Kia are ahead of Toyota even with their engine issues in USA.
          Volkswagen are much worse.

          NB You dont get full replacement cost anyway as the car was no longer new when she drove out the door

          • kerfuffle on 16/02/2024 - 05:42

            @Franc-T: Hyundai's warranty is only five years.

            • Franc-T on 16/02/2024 - 11:48

              @kerfuffle: Oh I just checked, it used to be 7 years for some models a couple of years ago now its 5 years on fuel, 8 years on EV.

              My mistake (assumption) Thanks for the correction.

              • jackary on 16/02/2024 - 18:19

                @Franc-T: Just to muddy the waters, my MY23 Hyundai will be under warranty until 2031, as long as I get it serviced by Hyundai. It’s in the paperwork. Standard warranty until 2028. I think Mitsubishi specify similar conditions for their 10 year warranty?

                • kerfuffle on 17/02/2024 - 07:28

                  @jackary: That's only warranty for certain parts, not the entire car. Toyota has a 10-year warranty for the hybrid part only or something like that provided it's been serviced by a Toyota dealer

                  • jackary on 17/02/2024 - 10:45

                    @kerfuffle: The extended warranty has the same exclusions as the standard warranty (no brake pads, batteries, wiper blades etc), but I clarified this twice, and have it in writing - the warranty I have until 2031 is the same as the standard warranty.

                    Not trying to argue with you! Happy to be wrong, but if you think I am, please give me more info

        • OzBrogains on 17/02/2024 - 20:52

          Tell me you know nothing about cars without telling me you know nothing about cars

    • boomramada on 15/02/2024 - 22:10

      Obviously to save on insurance premiums.

    • NolF on 17/02/2024 - 21:43

      It's the problem with market value. There should be something in the contract regarding how that it is established and how to dispute the value determined by the Insurer.

  • tsunamisurfer on 15/02/2024 - 20:32
    +35

    If she is insured for $39k and is paid $39k, what is your gripe exactly?

  • JIMB0 on 15/02/2024 - 20:35
    +4

    Your only hope of getting $43,500.00 is to claim against the other parties insurance.

    • jv on 15/02/2024 - 20:41
      -8

      You'd need to get your own lawyer to do that.

    • knobbs on 16/02/2024 - 11:16
      +4

      Isn't that what your insurance should be doing if you pay comprehensive?

      • kizzaaa on 16/02/2024 - 23:46
        +1

        There is difference between:

        1. OP making a claim on their insurance policy who resolve as quickly as they can and then attempt to get reimbursed via the other parties insurer, versus
        2. OP making a claim on the other parties insurer

        When going through approach 1, the insurer will settle the claim based on the policy details (e.g. market/agreed value) and then start the process of getting reimbursed from the other party/insurer.

        Whereas going direct to the other parties insurer means that OP can negotiate directly with the other insurer. This involves more effort and time (depends on the scenario of the accident, the insurer, your ability to negotiate, etc), but can sometimes offer a better outcome if there is a shortfall.

  • jv on 15/02/2024 - 20:40
    +17

    they will only offer a cash payout of the insured $39,000.00 and not the purchase price of $43,500.00

    Why didn't you take out an Agreed Value policy for $43.5K?

    • solidussnake on 15/02/2024 - 21:48
      +25

      so they could save $5pm…

  • jv on 15/02/2024 - 20:42
    -2

    Take the cash or try to find a VW Golf/Toyota Yaris Cross/Toyota CH-R

    Try for a Tesla.

    • pegaxs on 15/02/2024 - 22:04
      -3

      $39k would literally get her into an MG4 or BYD Dolphin and some spare change. But you know, they are no where near as reliable as what VW cars are renowned to be…

      • WT on 16/02/2024 - 12:48

        chineseium vs jap though

  • AustriaBargain on 15/02/2024 - 21:02
    +1

    I wish they did old for new car insurance. How sweet would it be for someone to write off my lemon.

    • jv on 15/02/2024 - 21:28
      +5

      You want a new lemon?

      • AustriaBargain on 15/02/2024 - 21:51
        -1

        Yup. I could crash my 2002 BMW X5 and get it replaced with brand new i4. In 22 years time I bet it'll be a lemon so it's like for like.

        • bobbified on 15/02/2024 - 22:31
          +2

          2002 BMW X5

          curious…. how long have you owned this and how much have you spent on repairs so far (or how much is there wrong with it that you haven't spent money on to fix yet)? 😆

          • resisting the urge on 16/02/2024 - 10:04
            -3

            @bobbified: Xperts drive Xcars

            Normal people drive Appliances

            So by extension, OzBargainers should drive Z cars?

            But instead they drive Camrys, which are all bought out by Uber. And none opt to buy used GTRs instead (the ultimate high yield investment in this price range!).

            Where is the logic in car purchase decisions anyhow? Broken, at best. Worse than my logic at worst!

          • Nugs on 16/02/2024 - 12:51

            @bobbified: @AustriaBargain
            .

    • EightImmortals on 16/02/2024 - 08:06

      They do, I have one with Suncorp. Has to be taken out when you buy the new car though and you can;t change policies.

      • kerfuffle on 16/02/2024 - 08:07
        +2

        I think you missed the point they were making.

  • Euphemistic on 15/02/2024 - 21:34
    +7

    Sounds like aami is trying to get out of doing any work. Theÿ pay our the insured value then go chase the at fault party for $39k plus costs. Theres barely any extra work for them to up the price to replacement value.

  • pegaxs on 15/02/2024 - 22:00
    +10

    lol @ VW having a: good resale value and b: being as reliable as a Toyota…

    Anyway, cash the rego out, that should net her some money back. You’re not getting the $4.5k difference.

    I’m guessing, to save a few $$’s on insurance you opted out of “new for old” and out of “market value”?

  • hsbc on 15/02/2024 - 22:12
    -2

    Get a Tesla

  • bobbified on 15/02/2024 - 22:20
    +25

    Is the at-fault insured? You can claim through their insurance instead of your own and negotiate the payout amount to "make you whole" (you've got a good argument because the car is basically brand new and you'd still have the invoice showing the total amount paid).

    If you go through your own insurer, they'll only pay out the agreed value or market value (often lower than agreed value, but that is negotiable), . Sometimes insurers are also willing to negotiate on "agreed value" because, if the at-fault" party is insured, they can the amount back from the other insurer (if it's not themselves). If they're not insured, then your insurer wears the risk of not being able to claim it back from the at-fault party directly, so they'll aim to pay out as low as possible.

    • knobbs on 16/02/2024 - 11:18
      +5

      Finally someone who understands

    • john_conner on 16/02/2024 - 12:16
      +1

      This is the way. It is ironic that going through your own insurance will actually yield a worse result that dealing directly, but it is true.

    • kaleidoscope on 17/02/2024 - 11:57

      This is the way.

      Shit happens when you least expect it… Wish you good luck OP!

    • bluesky on 17/02/2024 - 16:07

      Quite a few comments suggesting that claiming from the at-fault party's insurer may yield a better outcome.

      Just curious. Once you have lodged a claim with your own insurer, is it possible to change your mind, cancel the claim, and go to the at-fault party's insurer directly? Especially if the payout from your own insurer seems low, or not reasonable.

      Or do you just get one chance to decide which insurer to put in the claim with - your own, or the other party's - at the start?

      • bobbified on 17/02/2024 - 20:13
        +1

        They usually do allow the withdrawal of a claim (up to the point of settlement). It happens quite frequently.

  • FoxJump on 15/02/2024 - 23:41

    These days i have everything on Market Value, because, second hand prices have been silly priced, it works out better.

    • TEER3X on 16/02/2024 - 09:09
      +3

      The news says 2nd hand prices have fallen

      • Zondor on 17/02/2024 - 17:47
        +1

        The news says alot of things.

    • ThithLord on 16/02/2024 - 09:51

      I paid about $8k for a Mazda 2 and it got hail damage, payout was $9.6 lol lol

      • Nugs on 16/02/2024 - 12:56
        +1

        Bought a V6 Bora pre covid for $1500. Daughter got rear ended a couple years later. we got $3200 plus still kept car and drove it until bought another car (boot wired shut)
        .

        • ThithLord on 16/02/2024 - 14:42

          Nice! They were gonna let me keep the car for $1k but I didn't need it, was planning on selling it anyway to be honest. Saved me a headache

          • Nugs on 16/02/2024 - 19:40
            +1

            @ThithLord: $600 extra if they took car. Other daughter has bought same car, the tyres on first one were still at 75% tread left and cost $500 for the set. Used a few other bits already so nearly equalled out
            .

  • Mechz on 16/02/2024 - 00:24

    Take the money and go and buy a 6 or 7 year old Corolla for under $20k. Then insure it for an agreed value.

  • SmiTTy on 16/02/2024 - 00:54

    39k for a second hand car, that you bought new for 43k isn't so bad. I know you're out of pocket at the end of the day but unfortunately it is what it is (your car loses value as soon as you drive it out)

    I believe Gio have a thing where they will replace with new car if you had it insured with them from the beginning. But otherwise it is just market or agreed value (I assume you didn't select agreed value or they didn't allow your agreed value to be 43k)

    • kerfuffle on 16/02/2024 - 05:41
      -1

      AAMI have it too. They just can't find a Corolla that matches what the OP's mum bought

      • Bigboomboom on 16/02/2024 - 12:10
        +1

        Almost every insurer will have new car replacement for first 12-36 months. GIO (Suncorp) has Platinum cover which does new for old for lifetime as long as you have been on the cover since bought new.

        However even GIO Platinum cover has agreed value only now (they were market value before, people got settlement for more than what they bought their car new when they can't agree on similar replacement).

    • Cluster on 16/02/2024 - 11:31

      Over the last few years the entire car market has been completely upside down, and sometimes a used car is worth more than new. Why? Because you still have to wait 6 months for some Corolla models, but that used car over there can be driven away in a day or two.

  • xuqi on 16/02/2024 - 01:28
    +9

    Unlucky…….She's with AAMI…….

  • brendanm on 16/02/2024 - 07:34
    +9

    You chose to underinsure to save on premiums, now you are complaining about it?

    Claim against the third parties policy for the full amount if you want.

  • Sinnerator on 16/02/2024 - 08:23

    Say no thanks to your insurer and submit copiesof all your receipts for costs of your new car and argue for that amount

  • SteveB00 on 16/02/2024 - 09:07
    +6

    "e.g. no Kia, Hyundai etc"

    From the 2023 JD Power reliability service in the US: "Kia (152 PP100) ranks highest in the mass market segment for a third consecutive year".

    Plus you get a seven year warranty.

  • Sterio on 16/02/2024 - 09:21
    +2

    I’d go the option of a Yaris Cross or the CHR.

    Go to the dealer where your mum purchased the Corolla and see what $43k drive away gets her in the form of the Cross or the CHR. Pick one and the tell the insurer what specs you want. Keep in mind insurers will be able to acquire a replacement vehicle significantly cheaper than what you and I can through fleet pricing.

  • stuffandthat on 16/02/2024 - 09:29
    +15

    I'd take a Kia/Hyundai before I'd ever consider any VW.

  • coffeeinmyveins on 16/02/2024 - 09:35
    +12

    I'm thinking a VW Golf etc. Something with good resale value and just general overall reliability

    hahahahahahahahahahahahahahahahahahahahahahahahahahahahahahaha

    Do not get a VW, especially a Golf, if you want a reliable car with good resale.

  • Burger R on 16/02/2024 - 10:04
    +1

    What I know, for car within 1yr. Is full replacement. Get a different colour car if the same colour not available. Otherwise, you can only claim the agreed value.

    • thanatos350 on 16/02/2024 - 20:04

      I think it's within first two years.

  • Kremleen on 16/02/2024 - 10:05
    +4

    Go chase the at-fault party's insurer for a replacement or a higher payout. If you're insured for agreed amount with AAMI then there's nothing they can do if you don't get a new-for-old option in your cover.

    Chasing the other insurer might get you a better deal. And you can definitely ask for a hire car from the at fault's insurer while everything is under negotiation.

    • resisting the urge on 16/02/2024 - 10:12
      +4

      +1: Why make a claim on your own insurance over sending a letter of demand to the at fault driver (or their insurer)?

      So you don't have to deal with the other party?

      Regardless of the insured value, this seems an overly meek way to resolve the loss

  • LanceVance on 16/02/2024 - 10:11
    +1

    You're only going to get the agreed value ($39K) as that is literally what your insurance contract is based on.
    VW's do not have the reliability of a Toyota.

  • minniethemoocher on 16/02/2024 - 10:41
    +5

    It’s my understanding that they are meant to replace your mums new car under the policy as it’s under 1 year old. It doesn’t matter that they can’t find one, that’s their problem. If you are thinking of taking the cash I would try to negotiate an amount that will actually cover the cost of a new car. You can point out it’s not your problem that they can’t replace the car and you need $43.5K to replace the car rather than $39K The thing with insurance companies is they will only offer the lowest amount they have to unless you make it clear that it’s unacceptable and you intend to take it further. You may have to take it higher however.

    • Jackson on 16/02/2024 - 21:45

      then if they don't play ball, go to the ombudsman

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