When is a vehicle considered a write off?
A vehicle is classified as a write off if it has been so badly damaged that it is no longer economical or safe to repair it.
There are two types of written off vehicles;
- Repairable write off
- Statutory write off
- Inspected repairable write off
What does repairable write off mean?
A repairable write off is a vehicle that has been written off because it has been deemed that the of the repairs required to get the car back on the road are likely to exceed the market value of the vehicle.
For example; John was involved in a significant car accident. His vehicle was worth $15,000 in regard to market value at the time of the accident.
After a vehicle assessment, it was deemed that it would cost at least $15,000 to repair the vehicle.
As such, it was deemed that it was not economical to repair the vehicle and as such it was classed as a repairable write off.
What does statutory write off mean?
A statutory write off is when a vehicle cannot be repaired and is only suitable to be used for spare parts.
Generally speaking, a vehicle will be considered a statutory write off because repairing it would be unsafe.
For example; Mary’s vehicle was badly damaged in an accident. She was hit from behind by a larger vehicle. The force of the accident was such that it caused the chassis of the vehicle to bend.
It was deemed that repairing the vehicle and putting it back on the road, given that it had a bent chassis, was unsafe and hence it was classed as a statutory write off.
Who decides whether a car is a write off?
After a motor vehicle accident, when you pursue a claim a vehicle assessor will be dispatched by the insurance company to assess the damage to your vehicle.
The job of this assessor is to provide an estimate as to how much it will cost to repair the vehicle and to put it back on the road.
The assessor will take note of whether there is any structural damage to the vehicle that would mean that the vehicle is not suitable to be repaired due to safety considerations.
Once the assessor has examined your vehicle they will provide a report back to the insurance company. This report will detail the cost estimate for any repairs.
Generally speaking, if the assessor determines that your car is unsafe to be repaired (e.g. if there was structural damage to the vehicle) or if the estimated total cost of the repairs is more than it would cost to replace the vehicle, then the car is deemed to be written off.
Many people might wonder how to write off a car after an accident but the decision is not theirs to make. The car must be deemed to be a write off by a qualified assessor.
What happens if my car is classed as a write off after an accident?
The insurance company will record your vehicle details in the written off vehicle register.
You can view the register here.
The insurance company, generally speaking, will then offer you a sum representing the value of the vehicle.
This will be based on either the cars market value or agreed value.
You then have two options in relation to the vehicle;
If the car is classed as a repairable right off, you can have it repaired and re-registered (or sell it).
If the car is classed as a statutory right off, you can keep it for parts or send it off to the scrapyard (or sell it).
Can I keep my car if it is written off?
You certainly can. You can ask to keep your car if it is a write off.
The insurer will deduct the salvage value of the vehicle from the overall insurance settlement amount.
What happens if my car is written off and it is under finance?
In this case, your insurance company should pay the finance company any outstanding amount.
However, keep in mind that if there is a difference between the amount paid out by your insurance company and the amount still owing, this shortfall will need to be paid by you.
In some cases you may have motor equity insurance which will cover this cost but this depends upon the nature of your policy.
Motor equity insurance is designed to pay a finance company The outstanding amount when your vehicle insurance policy payout is not sufficient to cover the total amount.
Selling a repairable write off car
You are able to sell it, either without having it repaired, or after it has been repaired.
However, as mentioned above, it will be listed on the repairable written off vehicle register and in most cases its status as a repaired write off will hamper it’s resale value.
If I don’t think my car is a write off, can I challenge the decision?
If your insurer determines that your vehicle is a write off based on the opinion of the vehicle assessor, and if you disagree with this decision, you can dispute it.
If you wish to dispute the decision, you should do so as soon as possible and preferably before the insurer lists your vehicle on the written off vehicle register (the insurance company should notify the written off vehicle registered within seven days of declaring a vehicle a write off).
The first step in contesting the insurers decision to class your vehicle as a write off is to telephone them and tell them that you disagree with the decision.
You should then obtain quotes from smash repairs to support your position.
Also of assistance would be evidence of the value of your vehicle using online services such as Redbook.
If it is financially viable to do so, you could consider seeking the assistance of a lawyer.
Can a repairable right off be insured?
Yes, In certain circumstances a car that was classed as a repairable write off that has been repaired, can be insured however keep in mind that some insurance companies may not cover the vehicle.
You should check with Vic roads and your particular insurance company.
Also keep in mind that if an insurance company does agree to cover the cost the insurance cost of your vehicle, your premiums may be higher than if you were to ensure a similar vehicle that had not been written off.