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{Moved from Politics} Insurance advice – Car incident

Discussion in 'The Pub' at netrider.net.au started by Kargo, Dec 12, 2013.

  1. I was hoping on of you guys could give me a bit of advice regarding car insurance. Without going into too much detail I was involved in an incident with another car a few weeks ago (I was also in a car, no one was hurt). Basically the other guy T-boned me. He had one of those “turn left on red after stopping” signs but failed to see me and our cars collided.

    Even though it was a very low speed incident the damage to my car is quite substantial (front passenger door, rear passenger door and rear bumper). The damage to his car was minimal (small dent and some scratches on the bumper, jeep VS my little ford laser).

    I currently only have 3rd part property insurance on my car because of the cost of full insurance is quite high when compared to the market value and potential agreed value of the car. In any case the other guy has admitted fault and has full insurance with the NRMA.

    Any who, I took my car to an NRMA approved mechanical earlier in the week to get the damage assessed. The mechanic gave me a call earlier today saying that due to the amount of damage and the age of the car (1998) the car will probably be written off. The mechanical has told me to remove all my belongings from the car and to bring it back to his shop so that an NRMA engineer can take a look at the car (I assume the mechanic was the only one that inspected it initially and sent photos to the NRMA). Based on the above, it seems pretty certain that my car will be a write off.

    And now it’s time for my questions:

    1) 1) I assume that the NRMA will offer me a payout at market value. Can I argue that the car is worth more than the market value due to its immaculate condition and low kms? When I had full insurance in 2012 the agreed value was $6,100. If I had got full insurance in 2013 the agreed value allowed would have been $4,650. Market value is probably around $3,000.)

    2) Am I able to refuse a payout and insist they repair my car? (I’m assuming the answer is no).

    3) Am I able to accept a reduced payout and keep my car (assuming damage is cosmetic only)?

    Anyone have any other advice? - I’m going to give the car a quick rinse before I take it in so that it looks like it’s worth more (y)

    Hum…quite a long post for a few simple questions…
  2. 1. Probably wait and see what the offer is, they may even try and apportion sone of the blame on you and reduce the payout.
    2 and 3 will be a matter of negotiation between you and his insurer.
    Until you know what they are prepared to do its a bit hard to suggest a course of action, it may be that you need to seek legal advice.
  3. The car is written off at the market value, you should be paid out at the agreed value if you had it at the agreed value.
    All cars are written off at the market value despite their agreed value.
    What you can do is buy the wreck back off them and then use your payout to repair the car but it aint worth it.

    If you have only insured it at the market value then take the money and that's it.

  4. Why do you think that possession passes to the insurer? It's not his insurer, it's the negligent party's insurer. They're compensating him for loss. Why would they be entitled to his car?
  5. You have 3rd party property, your car is not covered. When my son had a similar situation the car was repaired at some expense to the other insurance co. There is no "Write Off" value. If it can't be repaired they will probably pay out market value and that would be negotiable as they could not inspect the vehicle prior to the accident. The only hassle is you will have to do the negotiating on your own.
  6. if a car is written off by an insurance company it takes possession.
  7. That's usually an agreement between you and your own insurer. There is no contract between you and the other party's insurer. The OP's claim is against the other driver, not his insurer.
    That usually results in an offer to buy the car but If he wants a better offer he can negotiate, bearing in mind the cost of fighting it out in court.
  8. If a vehicle is written off in NSW it must be wrecked, it cannot be repaired. This became law at the start of this year, I recollect.
  9. Q1. The market value will take into consideration the condition of the vehicle and kilometres travelled. Your remarks after the Q about previous and current insurance which does not exist are irrelevant.

    Q2. NRMA's obligation is to either repair the vehicle or provide you with payment for repairs. Nothing more. Nothing less. If you cannot come to a resolution, they will make the decision for you by sending you a cheque. Your choice is then to take the money or refer the matter to an external third party.

    Q3. See above. Neither insurer takes your car. You can fix it, leave as is or sell.

    +1, except they won't offer to buy his car.

  10. Ok I misread the original post.
    I was under the impression he was applying through his insurer
  11. Thanks for the replies guys, have a much better idea of what to expect now. I'll let you know what happens.