Racq Write Off...payout Figure  

  • impulsesv6
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Post #1 post 10th April 2013 - 10:44 AM
Gday Dudes...

long story short I was in a crash on monday avo...
A hilux with a bull bar rear ended my corolla well and wrote it off... the hilux was virtually undamage, a testament to their build quality

My 2007 corolla hatch was full comp insured with Racq for market value (only available cos of age)

Tuesday Racq assessed the car and valued the parts only damage at $10,500. but it has a bend floor pan hence the write off...

Today I get a call from Racq offering $10,000 payout, I basically said I cant take that cos I cant buy a "same same" corolla for that much... he then upped it to $10500 and his statement was "just because cars are advertised for a price doesn't mean they sell for that amount"...

Racq have on their website a Market Value Car Price Guide and it lists the corolla as $11,380.00 - $12,655.00.
Ive done the research and with their payout I still cant buy a "same same" corolla, of the 5 listed on carsales in qld the avg price $11937 (not including qld rego transfer fees or inspection fees)
"same same", meaning same make, year, model, body and k's

Has anyone else been in the same situation where your not at fault and your own insurance has tried to rip you?
any tips and advice?

Twat In The Hat
Post #2

Did you mention to the bloke on the phone that his own company website lists the market value at 11,380-12,265? If so, what was his response to that?

Post #3

You're under no obligation to accept the first offer given. Yes, they will try to reduce their claims costs where possible (business being a business and all)

just another question... who is the insurer for the at fault 3rd party?

The extra info may help. Cheers

Post #4

the 4wd that hit me is insured with cua...

Post #5

this is why I self insure....

Post #6

i got 18,000 for my r34 when it got stolen 6 months ago through nrma.. it was a 99 model. hth

Post #7

If you didn't point out the valuation given by RACQ on their website, you certainly should have. I'd opt to have an independant assessment of the vehicle before accepting any offers from your insurance.

Post #8

they're looking at a number of things about your vehicle in giving you that quote, apart from trying to be tight asses and pay you out as little as possible.

like does the car have high kilometers, other non related accident damage that would reduce its value, serviced regularly etc etc.

tbh i think you can probably get a better offer, ie 12k or thereabouts, but you need to present them with the evidence that you've found that indicates that it's worth more.

Post #9

ok, so CGU underwrite CUA's motor insurance according to CUA's website

So, given that RACQ will be recovering their losses from CGU (assuming full fault of the third party and no partial liability), it would be worth asking why they are looking to do the cheap on you?

Again, reiterate what is listed on their website, perhaps also ask what features would substantiate the difference between the high range and low range (mileage / service history / condition / options / etc) to figure out where you should stand within that.

Post #10

racq called and the car is being reassessed...

explained to the nice girl the situation and she said it sounds like its been incorrectly valued

Post #11

Good news, hope you're all ok too.

Make sure if you have any signs of pain (whiplash, etc) you get in and see a doc straight away. If it turns out to be nothing, great... but if later on its recurring you've covered your arse by getting it reported asap.

Post #12

cheers dude...

yeah i have whiplash and back aches... went and seen the dr yesterday but she just said it takes time to heal

Special k
Post #13

it'll buff out?

Post #14

Ok, not sure why RACQ trying to stiff you, it is the ute drivers insurance paying after all.

I have had the same sort of rubbish when my boat was stolen, but I just said " I MAY get an independent valuation" they ask "will you" I just reply " I may", let them sweat on it, they will just keep increasing the offer to the market value and in the case of my boat, there was none ever sold second hand in the previous 3 years, so they were just trying it on, went from $10,500 to $13.600.
It worked the same when a friends mums car was written off, it was mint with perfect service history, they will try you on for sure, sting them with the website valuations as well.

Post #15

I insured my daily for market value and they told me how much market value was on it after I tried to insure it for a higher agreed amount. I suppose at the end of the day I paid $250 more than market, boy is my face red.

Do RACQ not do this? I would think that they should just have the car revalued each year and then the insured amount is stated on your policy rather than just leaving it "market".

Post #16

QUOTE (DAL32 @ Apr 10 2013, 11:49 PM) *
I insured my daily for market value and they told me how much market value was on it after I tried to insure it for a higher agreed amount.

I suppose at the end of the day I paid $250 more than market, boy is my face red.

Do RACQ not do this? I would think that they should just have the car revalued each year and then the insured amount is stated on your policy rather than just leaving it "market".

That would make it an Agreed Value policy rather than a Market Value policy

Easy way to differentiate the two... its like comparing a home loan... fixed rate (agreed value) versus variable rate (market value)... only thing is, with a variable rate( aka market value) you know its only going to head in one direction; downwards.

As such It might be on at $10k sum insured at renewal based on market guides, but if a total loss is experienced 6 months in, there's nothing stopping them offering $9,500 because the market may have depreciated $500 in that time.

With an agreed value (subject to the definition of the term in the PDS), at least you have a good idea what to expect.

Just be cautious... some insurers can include loopholes in the definition of agreed value by including phrases like '..or market value, whichever is lesser' or 'up to'

This is why it always pays to read the booklet you get sent. Too many people buy a product, dont familiarise themselves with it, then cry foul when it hits the fan and they realise the few bucks they saved hasnt saved them from a loss (eg: brisbane floods for example)

Post #17

well didnt have a win...

reasons and or excuses...
the valuations on their website are a national average valuation... the payout figure given is from a local market valuation, this they said is listed in the PDS...

with my dispute they has 3 ppl revalue the car, at 9500, 10000, and 10500...

and the other one is,.. In the current market there is 4 corollas listed between 10000 and 10500... the 2008's are cheaper than 2007's...

by this time,half an hour on the phone I was over it so took the deal... considering 2 yrs ago and 40000k ago I paid 11500 i dont think i did too bad haha...

Post #18

I'd tend to agree with that then, you're not really sustaining a massive loss smile.gif

Post #19

When I had my write off, I was 6 months into owning a car with 90k on and bought for 22.

I got a 20k payout, went and bought a 19k car, same year model and with 60k so I couldn't complain as technically that 30k less was a whole years "extra life" I'd get out of the car.

Not that it matters considering I traded it in (for 6.7k at 150k) and then 3 years later went and bought another car exactly the same but with 200k on, for 4k.

Post #20

The kicker is that the car with 200k on drives basically 100% the same as the car I bought back in 06 with 60k on. So my new is always better approach backfired. And now I drive two 14 year old cars

Post #21

Just on a side note here, when you signup for full comp policy, they may offer for you to insure it for a 'value' you set, i.e. most people would like to insure it for a bit more then they paid for the car to cover extras in the event of loss, however the insurer will say they will pay you the lessor of the agreed value or market value, which ALWAYS turns out to be their "market value", but they're happy to let you pay premiums on the higher specified value, even though they have no intention of honouring that. Second bit, for a laugh, ask the insurer how they determine their "market value" of a vehicle, then ask how many of the ads on carsales/etc at that point in time they planted there to bring the "market value" down to what they have in mind...

/*conspiracy theory batman out*

Post #22

Hmm. I am spending $160 a month to comprehensively insure both of my cars I better get to reading my PDS.

Hows this for a laugh though, I am insuring my GTV for over 3x the value of the 156 and the GTV has evil hooning mods like wheels, body kit and exhaust, but yet they both cost $80 a month to insure. I even tried looking at Shannons and the situation isn't any better. Rating 1 as well.

Post #23

Hi guys
I have a question. I am not familiar with lnsurance policy. RACQ told me your car is total loss. I have agreed value in my policy which is around 10k. Are they going to pay that value to me or they are going to assess my car and reduce that?

Post #24

I would have rung CGU to find out how much they would pay out on it.

Post #25

Just call RACQ and ask?

Usually a pay out will be value minus excess.

So if you have agreed value of $10k, and an excess of $1k, then you'll get a payout of $9k.

Note: you might have an age excess on top of standard excess, etc.

Post #26

hate to sound like an oldie but I think after how RACQ basically screwed QLD over with the floods I think they should not get any business at all.

Sorry, alot of ppl I know (some smart some dumb) got screwed by a very well written insurance terms that basically was a PNG bank ToC - you can deposit money but can't withdraw-

/my 2 worthless cents

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