Ask an expert

I recently had a crash whereby the other party was in the wrong.

Their insurance company is offering to pay me out the cars value ($3500) or the wreck plus cash ($3100).

The car was written off as the panel beating quote was $3600. They said the panel beater may cut a deal and fix it cheaper than the quote but I will have to pay to re-register it as well.

Do they have to de-register it if it's a write-off?

Alternatively, can I do it myself before they take it (if I choose to take the cash only) so that I am not liable of anything once its out of my hands.

Also, is it not a conflict of interests where the panel beater over quotes the work so as to write the vehicle off, then comes back with a cheaper quote to me directly to fix it?

Surely that is not kosher. Hope you can help with all these questions as I'm at a loss as to know what to do next, and, not to be liable for infringements against the vehicle in the future.

Jo

From the "Ask Jack" archives - 4 March 2010

After reading your email I believe taking the money and walking away from the car has to be a strong option.

Once a car is written-off it is basically scrap until such time as somebody can repair it to an approved standard. This means the repair must be done under the supervision and direction of a Government appointed Repair Certifier.

The Repair Certifier must sign off the repairs, not the panel beater so the costs could escalate, as in theory there are no compromises in the repair standards. This is a much higher risk if the car has suffered from some form of structural damage. The risk is lessened if the damage is more cosmetic.

There is a cost to have a Repair Certifier involved which at the end of the day will be paid by you if you go down that pathway. Add to that the compliance costs (mechanical inspection, re-registration and WoF) and the car starts to become very expensive to get back on the road.

I can't comment too much on the difference in costs with the panel beater. Maybe by talking to you directly they can provide options which do not compromise the safety of the car whereas the insurance company expect a certain repair standard and no customer complaints.

If you take the full amount from the insurance company you will not be liable for any future infringements if the car was repaired. The insurance company will take steps to ensure the Government Register identifies the car as a write-off.

If it was repaired and re-registered the new owners name would appear on the register.

If the insurance has not officially written the car off the car as yet, the game changes again as you can engage the panel beater to fix the car and you do not have to get a Repair Certifier involved or go through any compliancing.

In other words, the car remains on the Government register with its current registration number.

You would need to agree with the insurance company that they will not officially write the car off if you did take that option.

Remember at the end of the day you want to be driving a safe car so walking away with the bigger cheque to me is the best option in your case.