Vehicle ownership, insurance write off

[joel0407]

Just wondering if this is just an assumed thing or is it in insurance policies?


I have had a vehicle written off many years ago. I had 3rd party insurance but I was not the "Not at fault driver" and a claim was made against the other driver. He totally admitted fault. His insurance company made an appointment to assess the damage to my vehicle as I was still driving the vehicle. They didn't take long to just make me an offer but never took the vehicle. I continued to drive the vehicle until rego expired and took it to the wreckers for whatever I could get for it. I will admit the damage was pretty extensive and I shouldn't have been driving it. My mates had to climb in and out of the non-existent passenger window to get in and out of the car because the passenger door couldn't be opened.


My Skoda has been insured from new and has a new for old policy that I'm sold the idea that if the car is written off, I will be compensated for a new car of same make and model. In this situation I would understand if the insurance company took ownership of my old car.


My Disco however can only be insured for $12,000 (or close to). Now I have spent not only money on accessories to do what I believe improves the vehicle but spent countless hours repairing and modifying what has become known problems with the vehicle. If I was to sell the vehicle those improvements most likely wont get me any more money but it certainly makes the vehicle worth more money to me and affects any decision I might have to sell or change the vehicle. I would consider the vehicle might be worth more like $18,000 to me only.


Now if my Disco was written off, I would want to keep the vehicle. Now I have heard of people coming to cash agreements where they buy the vehicle back off the insurer. I'm wondering at what point do they think they own it? In my opinion I have it insured for up to $12,000 worth of damage. Should the damage exceed that amount, I will need to cover the extra cost. If I can't afford it at the time I will accept the $12000 cash and keep the vehicle until I can afford the repair or do part of the work myself to reduce the cost. At no point in time have I agreed they can have the vehicle so I don't understand why I would buy it back from them.


Happy Days.

[gavinwibrow]

Very good question, to which I did not get any replies when I posted last year.

Old mate says he used to insure his trucks for 80% of value, which in turn somehow meant that he retained ownership in a writeoff. Calculated risk, but like us, he knew his trucks and what they were really worth.

[Rok_Dr]

You'll need to read the fine print in the PDS Document as every policy is different. Some will give you the option of retaining the wreck, others first right to buy it back from them while others will take ownership when it is written off.

If you have a lot of accessories fitted that increase the value significantly beyond average market values then you may be better off going to a specialist insurer.

Cheers

Steve

[JDNSW]

As mentioned - it depends on the fine print - and another thing to watch out for, is that if the insurance company puts it on the written off vehicles register, as they are required to do if it is written off, it can never be registered in any Australian state or territory. (There is some sort of exemption from being entered on the register if the vehicle is over a specified age.)

John

[alien]

A quick search for the 2 levels of write offs found this.
I'd expect it to be the same Australia wide.
Written-off vehicle classifications

Written-off vehicles are classified either as a statutory or repairable write-off.
Statutory write-off

A statutory write-off is too badly damaged to be repaired to a standard that is safe for road use. The vehicle identification number (VIN) is recorded as a statutory write-off, and the vehicle is not allowed to be registered. These vehicles are only suitable for use as parts or scrap metal.
A repairable write-off

A repairable write-off has been assessed as uneconomical to repair. The VIN will be recorded as a repairable write-off and the vehicle will only be registered if it is repaired, passes a Queensland safety inspection (http://www.tmr.qld.gov.au/Registration/Buying-or-selling-a-used-vehicle.aspx) ( Rules for buying or selling a vehicle | Transport and motoring | Queensland Government (http://www.tmr.qld.gov.au/Registration/Buying-or-selling-a-used-vehicle.aspx) ) and passes a written-off vehicle inspection (http://www.tmr.qld.gov.au/Registration/Registering-vehicles/Written-off-vehicles/Written-off-vehicle-inspections.aspx) ( Written-off vehicle inspections (Department of Transport and Main Roads) (http://www.tmr.qld.gov.au/Registration/Registering-vehicles/Written-off-vehicles/Written-off-vehicle-inspections.aspx) ).
Read detailed definitions of statutory and repairable written-off vehicles (http://www.tmr.qld.gov.au/Registration/Registering-vehicles/Written-off-vehicles/Written-off-vehicle-definitions.aspx)

[JDNSW]

I don't think statutory write-offs exist any more in NSW and possibly other states.

John

[RVR110]

Two thoughts regarding your Disco...

1. Check with specialist 4x4 insurers to see if you can find one that will insure the car for what you believe it will cost you to replace the vehicle. There is at least one insurer who claims to offer that kind & level of coverage. Arthur J. Gallagher, Shannons and Club4x4 come to mind and all have different offerings at different prices. The devil is in the detail - for example be careful to distinguish between accessories (eg bullbar) and modifications (eg suspension) as you will find that some insurers will cover accessories but not modifications.

2. Discuss salvage rights with your insurer. Often you can add this to your policy at minimal extra cost. Make sure you understand any costs that you may incur should you wish to exercise that option as under some policies you would have to buy back the the car at the market value of the wreck.

If you don't have salvage rights another option is to follow the disposal of your vehicle after it has been written off. You can find this out from your insurance company - just make a request to recover some personal effects from the car and they will tell you where it is... Often it will appear at an auction house such as Pickles, however it will take time and effort to participate in the auction and of course there are no guarantees, especially if you are incapacitated following an accident.

[Pinelli]

A quick search for the 2 levels of write offs found this.
I'd expect it to be the same Australia wide.
Written-off vehicle classifications

Written-off vehicles are classified either as a statutory or repairable write-off.
Statutory write-off

A statutory write-off is too badly damaged to be repaired to a standard that is safe for road use. The vehicle identification number (VIN) is recorded as a statutory write-off, and the vehicle is not allowed to be registered. These vehicles are only suitable for use as parts or scrap metal.
A repairable write-off

A repairable write-off has been assessed as uneconomical to repair. The VIN will be recorded as a repairable write-off and the vehicle will only be registered if it is repaired, passes a Queensland safety inspection (http://www.tmr.qld.gov.au/Registration/Buying-or-selling-a-used-vehicle.aspx) ( Rules for buying or selling a vehicle | Transport and motoring | Queensland Government (http://www.tmr.qld.gov.au/Registration/Buying-or-selling-a-used-vehicle.aspx) ) and passes a written-off vehicle inspection (http://www.tmr.qld.gov.au/Registration/Registering-vehicles/Written-off-vehicles/Written-off-vehicle-inspections.aspx) ( Written-off vehicle inspections (Department of Transport and Main Roads) (http://www.tmr.qld.gov.au/Registration/Registering-vehicles/Written-off-vehicles/Written-off-vehicle-inspections.aspx) ).
Read detailed definitions of statutory and repairable written-off vehicles (http://www.tmr.qld.gov.au/Registration/Registering-vehicles/Written-off-vehicles/Written-off-vehicle-definitions.aspx)

There is a third case (in Qld at least) that exists covering panel only damage, particularly hail damage. My Disco was written off after a hail storm a bit over a year ago. Cracked windscreen, and pock marks on pretty much every panel, but nothing that affects its ability to drive safely- purely cosmetic apart from the windscreen.

You can apply to Main Roads to have its registration restored without any repairs at all to the panel work. So, I took the cash, replaced the windscreen, and expect to be driving it for at least another 5 yrs, when I will hand it over to my son when he gets his licence :)

There's one catch - the moment the insurance companies declares it a write off, you cannot drive it until Main Roads approves reregistration.

[Pinelli]

Just wondering if this is just an assumed thing or is it in insurance policies?


I have had a vehicle written off many years ago. I had 3rd party insurance but I was not the "Not at fault driver" and a claim was made against the other driver. He totally admitted fault. His insurance company made an appointment to assess the damage to my vehicle as I was still driving the vehicle. They didn't take long to just make me an offer but never took the vehicle. I continued to drive the vehicle until rego expired and took it to the wreckers for whatever I could get for it. I will admit the damage was pretty extensive and I shouldn't have been driving it. My mates had to climb in and out of the non-existent passenger window to get in and out of the car because the passenger door couldn't be opened.


My Skoda has been insured from new and has a new for old policy that I'm sold the idea that if the car is written off, I will be compensated for a new car of same make and model. In this situation I would understand if the insurance company took ownership of my old car.


My Disco however can only be insured for $12,000 (or close to). Now I have spent not only money on accessories to do what I believe improves the vehicle but spent countless hours repairing and modifying what has become known problems with the vehicle. If I was to sell the vehicle those improvements most likely wont get me any more money but it certainly makes the vehicle worth more money to me and affects any decision I might have to sell or change the vehicle. I would consider the vehicle might be worth more like $18,000 to me only.


Now if my Disco was written off, I would want to keep the vehicle. Now I have heard of people coming to cash agreements where they buy the vehicle back off the insurer. I'm wondering at what point do they think they own it? In my opinion I have it insured for up to $12,000 worth of damage. Should the damage exceed that amount, I will need to cover the extra cost. If I can't afford it at the time I will accept the $12000 cash and keep the vehicle until I can afford the repair or do part of the work myself to reduce the cost. At no point in time have I agreed they can have the vehicle so I don't understand why I would buy it back from them.


Happy Days.

I would think this is pretty straight forward. They're buying it off you for the market value of the car before the damage. Why should you expect to keep it?

You should be able to get it insured for any reasonable amount you want, if you go to the right insurer - agreed value rather than market value. Of course, your premiums will reflect that higher level of risk that the insurance company is taking on.

[alien]

I don't think statutory write-offs exist any more in NSW and possibly other states.

John
Had a quick google for NSW as you got me wondering.
Quite a few hops to jump through if you think you fit the exemptions.
Written off vehicles - Get a NSW registration - Registration - Roads - Roads and Maritime Services (http://www.rms.nsw.gov.au/roads/registration/get-nsw-registration/written-off.html#Exemptcategories)




For the OP it looks like NT still have repairable write offs...
http://www.transport.nt.gov.au/mvr/registration/faqs/written-off-vehicle-register

[Ean Austral]

A look at the salvage section on several of the major auction sites suggests that in every state & Territory damaged vehicles are at auction under 3 catagories,


Repairable writeoff


Statutory writeoff


No WOVR .


A search seems to indicate if the vehicle purchased is Statutory writeoff it can not be re registered.


Cheers Ean

[UncleHo]

I have my Series 2a insured through Shannon's,for an agreed value with the provisothat I retain the wreck,so if it gets seriously damaged,They bring it home,and I can strip and rebuild it,even a chassis can be straightened or replaced,so up to a D2 they can be stripped and rebuilt,not sure about Rangies,I think you could do it up to P38a,not sure about L322> though.


cheers

[Pinelli]

I have my Series 2a insured through Shannon's,for an agreed value with the provisothat I retain the wreck,so if it gets seriously damaged,They bring it home,and I can strip and rebuild it,even a chassis can be straightened or replaced,so up to a D2 they can be stripped and rebuilt,not sure about Rangies,I think you could do it up to P38a,not sure about L322> though.


cheers

So you'd replace the chassis & the body at the same time????

[350RRC]

I have my Series 2a insured through Shannon's,for an agreed value with the provisothat I retain the wreck,so if it gets seriously damaged,They bring it home,and I can strip and rebuild it,even a chassis can be straightened or replaced,so up to a D2 they can be stripped and rebuilt,not sure about Rangies,I think you could do it up to P38a,not sure about L322> though.


cheers

I have the same deal with Shannons, its called salvage rights. Costs a pittance extra, but you own the vehicle if its written off.

DL

[Homestar]

As has been mentioned, check with your insurance company. I too have a policy with Shannons on my 101 aand RRC and have salvage rights. The other vehicles are insured with another company and I have first right of refusal on the wrecks.

If you are the not at fault party and your vehicle is written off by the other persons insurance comany (as happened to us a few months back) you have the right to first refusal on the wreck - if this happens DO NOT sign anything they give you until this is sorted and agreed upon in writting. They cannot take your car until you have signed it over to them in this case - no matter what they try and tell you - they try this on a lot, and most people don't care or know how to stand up for thier rights.

They will take off the value of the wreck from the payout figure. With our recent event, the other persons insurance comany was very easy to deal with, happily agreed to us retaining the wreck - and even delievered it back to our place free of charge. The reason I kept the wreck in this case (Our 97 Vectra) was that I had just put 4 new tyres on it and paid the rego all within a week. They took $500 off the pay out price for the wreck ($2,600 in this case minus the $500 for the vehicle - I was stoked with that!) I then cashed in the rego for just over $700 and sold the tyres on Gumtree for $400. I removed the stereo, amps and speakers as these were very good and worth more than the car, then I rang a guy up to pick up what was left - and he gave me another $150 as it was still driveable. :D

[Pinelli]

As has been mentioned, check with your insurance company. I too have a policy with Shannons on my 101 aand RRC and have salvage rights. The other vehicles are insured with another company and I have first right of refusal on the wrecks.

If you are the not at fault party and your vehicle is written off by the other persons insurance comany (as happened to us a few months back) you have the right to first refusal on the wreck - if this happens DO NOT sign anything they give you until this is sorted and agreed upon in writting. They cannot take your car until you have signed it over to them in this case - no matter what they try and tell you - they try this on a lot, and most people don't care or know how to stand up for thier rights.

They will take off the value of the wreck from the payout figure. With our recent event, the other persons insurance comany was very easy to deal with, happily agreed to us retaining the wreck - and even delievered it back to our place free of charge. The reason I kept the wreck in this case (Our 97 Vectra) was that I had just put 4 new tyres on it and paid the rego all within a week. They took $500 off the pay out price for the wreck ($2,600 in this case minus the $500 for the vehicle - I was stoked with that!) I then cashed in the rego for just over $700 and sold the tyres on Gumtree for $400. I removed the stereo, amps and speakers as these were very good and worth more than the car, then I rang a guy up to pick up what was left - and he gave me another $150 as it was still driveable. :D

Good effort to drive it without the tyres.

[Homestar]

Good effort to drive it without the tyres.

Wondered if someone would pick that up. :D

I had an old set of 18" rims and tyres for it that were stuffed, but would hold air for a few days.

[stewie110]

My sister in law just had someone run up the rear of her car. Wrote it off, thankfully everyone is okay.

Her insurance company let her take any of the itemised accessories off the car if they were salvageable for no cost. The rest of the car was scrapped.

[Lotz-A-Landies]

A quick search for the 2 levels of write offs found this.
I'd expect it to be the same Australia wide.
Written-off vehicle classifications

Written-off vehicles are classified either as a statutory or repairable write-off.
Statutory write-off

A statutory write-off is too badly damaged to be repaired to a standard that is safe for road use. The vehicle identification number (VIN) is recorded as a statutory write-off, and the vehicle is not allowed to be registered. These vehicles are only suitable for use as parts or scrap metal.
A repairable write-off

A repairable write-off has been assessed as uneconomical to repair. The VIN will be recorded as a repairable write-off and the vehicle will only be registered if it is repaired, passes a Queensland safety inspection (http://www.tmr.qld.gov.au/Registration/Buying-or-selling-a-used-vehicle.aspx) ( Rules for buying or selling a vehicle | Transport and motoring | Queensland Government (http://www.tmr.qld.gov.au/Registration/Buying-or-selling-a-used-vehicle.aspx) ) and passes a written-off vehicle inspection (http://www.tmr.qld.gov.au/Registration/Registering-vehicles/Written-off-vehicles/Written-off-vehicle-inspections.aspx) ( Written-off vehicle inspections (Department of Transport and Main Roads) (http://www.tmr.qld.gov.au/Registration/Registering-vehicles/Written-off-vehicles/Written-off-vehicle-inspections.aspx) ).
Read detailed definitions of statutory and repairable written-off vehicles (http://www.tmr.qld.gov.au/Registration/Registering-vehicles/Written-off-vehicles/Written-off-vehicle-definitions.aspx)Repairable Write-Off is no longer an option in NSW, they all get a Statutory Write-Off. This is because even repairable write-off VIN were being used to re-birth stolen vehicles.

If you own a car with a low Red Book valuation, you are frequently better off insuring only for third party, fire and theft. This sort of insurance is much much cheaper than full comprehensive insurance and you are covered if you hit someone else.

When you weren't the cause of a crash, you then hit the at-fault driver directly for the repairs to your vehicle. He (sic) can deal with his insurance company for the repairs to your vehicle. Remember that his insurance company has no title to your vehicle so you own the wreck in spite of what any insurance assessor or tow truck driver may say when they arrive attempting to steal your wrecked vehicle.

When my MY85 cRR was about 8 years old the cost of comprehensive insurance had gone up significantly and the value down significantly so I changed to TP-F-T. In 2001 when I was run off the road and rolled caused by a hit and run driver, the cost of the repairs was significantly less than the costs I would have paid on premiums over the same time. You are however carrying a significant financial risk.