Insurance companies - can i reduce the agreed value so they write off my car?

[SE Ute]

Just got what i hope is a simple question for anyone that knows a bit about how insurance companies work.

I've got $11,000 worth of damage to my ute, it's pretty nasty, got t-boned in the drivers door, and she's gone a bit banana shaped, not driving straight etc etc, so i don't really want her back, i really want her to be a write off. If it is fixed then i'll probably move her on ASAP when i get her back. I don't think it'll ever be the same.

Anyway the problem i've got is it's insured for $17,550 agreed value, so they won't write her off, they want to fix it, apparently damage needs to be greater than 70% of the value of the vehicle for it to be a write off. The thing is though, i'd be happier with an amount less than the agreed value. I got her valued a couple of weeks back as a trade in on a new car, and the dealer was only going to give me $8,500. I reckon i could probably get $12,000 to $14,000 tops if i sold it privately, and i'd be happy to take $14,000 from the insurer, if they would write her off. Save me the hassle of selling it privately etc etc...

I've asked the insurer if we could agree on a lesser value for the car so it is a write off, and i think i must be the first person to ever ask them, because the first person i spoke to didn't understand and the second person is going to get someone else to call me back.

So, i'm hoping someone on here might have done a similar thing, or know a bit about how insurance companies work, and can tell me if they are likely to agree to what i'm proposing to them, just so i can push them the way i want with a bit of confidence and won't get told a furphy so they get what they want..

Thanks guys. Sorry about the long post..

[Yaw]

Originally Posted by SE Ute

Just got what i hope is a simple question for anyone that knows a bit about how insurance companies work.

I've got $11,000 worth of damage to my ute, it's pretty nasty, got t-boned in the drivers door, and she's gone a bit banana shaped, not driving straight etc etc, so i don't really want her back, i really want her to be a write off. If it is fixed then i'll probably move her on ASAP when i get her back. I don't think it'll ever be the same.

Anyway the problem i've got is it's insured for $17,550 agreed value, so they won't write her off, they want to fix it, apparently damage needs to be greater than 70% of the value of the vehicle for it to be a write off. The thing is though, i'd be happier with an amount less than the agreed value. I got her valued a couple of weeks back as a trade in on a new car, and the dealer was only going to give me $8,500. I reckon i could probably get $12,000 to $14,000 tops if i sold it privately, and i'd be happy to take $14,000 from the insurer, if they would write her off. Save me the hassle of selling it privately etc etc...

I've asked the insurer if we could agree on a lesser value for the car so it is a write off, and i think i must be the first person to ever ask them, because the first person i spoke to didn't understand and the second person is going to get someone else to call me back.

So, i'm hoping someone on here might have done a similar thing, or know a bit about how insurance companies work, and can tell me if they are likely to agree to what i'm proposing to them, just so i can push them the way i want with a bit of confidence and won't get told a furphy so they get what they want..

Thanks guys. Sorry about the long post..

It would be up to the particular assessor at the end of the day, but for them to agree to it, the amount you want would have to be the cost of the repairs otherwise it will still cost more than repairing it. I can't see $12000 or $14000 flying when they can pay $11000 for the repairs. You would also need to sign a release to accept that amount if they do offer it.

[mongoloid]

If you have choice of repairer with your car you could always ask the assessor to bump the repair price up for a carton of rum.

[Rodp]

Put yourself in the insurers shoes. They can repair it for $11k but you want to drop the agreed value down to $14k and have it written off, insurance company loses $3k. Doesn't sound like good business sense to me. The insurance company is trying to minimise its loss.

[FGII-XR6]

Originally Posted by Rodp

Put yourself in the insurers shoes. They can repair it for $11k but you want to drop the agreed value down to $14k and have it written off, insurance company loses $3k. Doesn't sound like good business sense to me. The insurance company is trying to minimise its loss.

insurance company could actually win when you consider what they will get at auction for the wreck

[DJL351]

If the repair bill is $11,000 and the car is insured for under $20,000.... there is a fair chance it will get canned anyway.

D

[Rodp]

Originally Posted by au3xr6

insurance company could actually win when you consider what they will get at auction for the wreck

Yeah, fair point. Though $11k worth of damage probably wouldn't fetch much for the wreck though. Especially since it has been written off.

[SE Ute]

Originally Posted by au3xr6

insurance company could actually win when you consider what they will get at auction for the wreck

Well there is no mechanical damage, other than the chassis bent, it hit fair and square in the side between the wheels, so motor, transmission, diff, interior other than the drivers side, wheels, just put new tyres on it 2000kms ago, all be good to someone, although it was only an AU3 XL SE ute, so nothing on it that special, but it was in immaculate condition till last week. Panel beater reckons it'd still be worth $5-6k at auction.

So you guys reckon it's up to the individual assessor?? I'll chase him up then and discuss it, that might be who's supposed to be calling me anyway..

[SE Ute]

Originally Posted by mongoloid

If you have choice of repairer with your car you could always ask the assessor to bump the repair price up for a carton of rum.

Is there anything that can't be worked out for a slab/carton? The nation's second currency.

I've already got the panel beater on side, if i can track down the assessor i will take your advice.

[sgt_doofey]

If the chassis is bent, surely they wouldn't repair it? Wouldn't that then create a weak spot in the chassis if it is straightened out again?

[Hunter]

Originally Posted by sgt_doofey

If the chassis is bent, surely they wouldn't repair it? Wouldn't that then create a weak spot in the chassis if it is straightened out again?

Not necessarily. You'd be surprised at what they can do with a chassis alignment machine...

Of course if you asked the question "Would you want to drive/buy/own a car with a formerly bent chassis?", my answer would be "no not really"

[LTDHO]

Simple answer = Yes.