Thread: Vehicle ownership, insurance write off

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.

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

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

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 ( Rules for buying or selling a vehicle | Transport and motoring | Queensland Government ) and passes a written-off vehicle inspection ( Written-off vehicle inspections (Department of Transport and Main Roads) ).
Read detailed definitions of statutory and repairable written-off vehicles

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

John

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.

Originally Posted by 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 ( Rules for buying or selling a vehicle | Transport and motoring | Queensland Government ) and passes a written-off vehicle inspection ( Written-off vehicle inspections (Department of Transport and Main Roads) ).
Read detailed definitions of statutory and repairable written-off vehicles

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.

Originally Posted by 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.

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.