How does insurance work?

[cupnoodle]

Hi all,

If stolen, do you just receive a payout of what the car is covered for? Or do you get a direct replacement? Would the replacement be same model, brand new or second hand?

If crashed, how severe does it have to be damaged before you qualify for this "compensation"?

Much appreciated

[Ken-f]

I think its up to the insurer. Unless you've has specifically agreed on something else.

[VTECMACHINE]

From every instance I have heard of when a car is written off, the insurance company pays you money. They do not give you a replacement car. You will have an agreed value for the vechile, and that's the amount insurance will pay you, minus the excess's.

[cupnoodle]

Hmmmm interesting, this is a much better alternative to selling. Anyone wanna "steal" my car? jks

Thanks for the prompt response guys.

[tpphan]

Insurance policies all vary, also depends on the type of policy you have with them. Best to read the PDS (Product Disclosure Statement).

[VTECMACHINE]

Also careful with these types of threads.

I have seen a few cases where people's cars get "stolen", people make claims, and Insurance companies use a forum thread as evidence. Just be careful what you say... Insurance and Police do scan the forums.

[Zilli]

^ very good point

[Dy_]

cases in which they find the car and find that the car was stolen using an original key the claim would also be void.

my mates sister had her car stolen and torched. insurance said after tests they found that it was stolen using a key. result = no pay out.

[sassy_fit_vtit]

Hi all,

If stolen, do you just receive a payout of what the car is covered for? Or do you get a direct replacement? Would the replacement be same model, brand new or second hand?

If crashed, how severe does it have to be damaged before you qualify for this "compensation"?

Much appreciated

Firstly it depends on what type of cover you have on your vehicle. to be covered for theft you car needs to either be covered for3rd party fire and theft or comprehensive.

Generally you receive a payout for the vehicle at either a market or agreed value depending on the T&C of your policy. If the car is a new vehicle and you are the first registered owner you may have the option of receiving a replacement vehicle of the same specifications, depending on your policy it might be the newest model or the exact same yom as the vehicle to be insured, if it is a discontinued line then you will be replaced with the equivalent e.g. Echo = Yaris. Additionally you might be entitled to a hire car as a standard on the policy (PLease read your policy documents Product Disclosure Statement really carefully)

You need to make a police report and hand that into the insurer to make the claim and pay the excess. Generally speaking you might need to wait at least 14 days to see if the car is recovered. If you have made modifications or added accessories to your car then the payout might be higher then the market value, keep in mind they won't cover you or compensate you for anything that you haven't told them previously.

If the car is recovered AFTER they payout has been made, then the car is forefited to the insurer, they have paid you out thus they now own the car. You can however ask to salvage the vehicle (pay for the vehicle with the damages), but you will only be able to insure it for 3rd party property until the vehicle has been repaired. Last option is to return the pay out to the insurer, and they will repair the car and return it to you.

If the car is recovered BEFORE payout then the claim is closed. If a hire car has been provided you may need to pay them for a portion of the usage. If an excess has been paid then that will be refunded to you.

In Terms of the vehicle being a write-off, it is generally defined as when it is either uneconomical or not safe once repaired then the vehicle is declared a write-off and a payout is made. If it is uneconomical to be repair, i.e. it just simply cost too much then what the car is worth, then it is declared a repairable write-off which means that you can repair it and re-register it. Again you can choose to buy back the car but will only be able to insure it for 3rd party property damage until its been repaired. If it is unsafe e.g. chassie damage, then its a statutory write of which means under no circumstance will it be able to be re-registered and even if you did choose to buy it back its only good for parts. Again depends on what type of cover you have and the nature of your policy.