Does my insurance cover me if my car is a write-off?

Have you recently been involved in a car incident? Are you wondering if your car is a write-off? With AAMI, this kind of experience doesn’t have to be stressful. Get to know the different ways insurers define a ‘written-off’ vehicle, next steps for having your car assessed for repairs, and whether your insurance covers you if you think your car is a write-off. 

Is my car a write-off?

In some cases, it’s very clear that a car is a write-off – usually when it has to be towed from the scene of an incident following substantial damage. But the only way you’ll get confirmation is by making a claim with your insurer.

During the claims process, your insurer will have your car assessed. They might categorise your car as either a ‘repairable’ write-off or a ‘statutory’ write-off., but this depends on what state or territory you live within. 

Repairable write off

As a repairable write-off, your car could technically be repaired, but the cost would be more than the value of your vehicle and/or what it’s insured for. Whether your car is declared a repairable write-off can depend on whether it’s been insured for 'market value' or 'amount covered'.

Learn more about AAMI Repairs

Statutory write-off

A car that’s declared a statutory write-off is damaged so heavily that it can never be driven safely. Regardless of any potential repairs, either cosmetic or mechanical – this car will never be on the road again. In this case, the insurer would pay you the amount the car was insured for, and enter the VIN and further details of the vehicle into the written-off vehicle register (WOVR) so that it can never be sold, used or registered again.

Note: the process isn’t the same across the country. In NSW, all written-off vehicles are initially categorised as statutory write-offs, unless they’re solely damaged by hail. So in NSW, once a car is classified as a statutory write-off, it will then be assessed whether it’s unsafe to repair or uneconomical to repair. Only a vehicle classified in this second group (uneconomical to repair) can be repaired (and only if authorisation is granted).

You might be covered if you’ve written-off your car

If you have AAMI Comprehensive Car Insurance and your car is a write-off after an insured event, we’ll pay you the amount covered for your car, which you’ll find on your certificate of insurance. Depending on your policy, you might also be eligible for ‘New car after a total loss for cars less than 2 years old’. Check out your policy’s Product Disclosure Statement for more information.

To access payment for a written-off car, we’ll first need to assess your vehicle. This is one of the first things we do after you make a claim. 

What is the claims process?

If your car is damaged in an incident, you can lodge your claim online or over the phone. You can add relevant documents, pay your excess, and track your claim and repairs all online. 

Head to AAMI Claims

Who pays for the damage if my car is a write-off?

It can depend on the details of the claim, such as the type of insurance you have and who was at fault. For example, if you have Comprehensive Car Insurance and you were at fault, you will need to pay your excess, but your insurance provider will cover the cost of your vehicle. 

You may not need to pay your excess or any costs towards the repair or write off of your vehicle if another party was at fault and you’ve provided:

• the name and address of the driver at fault
• the registration number of the at-fault vehicle involved in the incident

Get a Comprehensive Car Insurance quote
 

How is the value of the car and my payout determined?

Depends! If your car was insured for an ‘amount covered’, on which you and your insurer agreed when you took out your policy, that’s how much you’ll be paid — minus any applicable expenses, such as an excess. If you insured your vehicle at a ‘market value’, the payout amount will depend on factors such as age, mileage, condition and more. Please refer to your policy's Product Disclosure Statement for definitions and more information.

What if I owe money on a written-off car?

If money is still owed on the vehicle through financing, the insurer is legally obligated to pay the remaining amount. However, if the amount paid out for the car is less than the amount owed, you’d have to pay the outstanding amount. If it’s more than the amount owed, you’ll receive the excess amount.

If you used a bank loan or parts of a loan to fund your car purchase, you’ll be paid out the value of the car and you could use the payout toward paying this debt off. 

To ensure you’re covered in case your car is a write-off, check out AAMI Comprehensive Car Insurance. 

Explore Car Insurance

Read more:

• Car insurance: what's the difference between market value and agreed value?
• What to do when you make a claim
• When do you pay excess on car insurance?

Insurance is issued by AAI Limited ABN 48 005 297 807 AFSL 230859 (AAI) trading as AAMI. Any advice has been prepared without taking into account your particular objectives, financial situation or needs, so you should consider whether it is appropriate for you before acting on it. Please read the relevant Product Disclosure Statement before you make any decision regarding this product. The Target Market Determination is also available.