[NSW] Ban on repairable write-offs

[Chrono Trigger]

I'm not sure if you guys are aware, but i came across this yesterday, so i thought i'd share....

“Today’s announcement means any car which is written off will not be able to be reregistered even if it can be repaired.”

“NSW is the first state to introduce this ban on repairable write-offs, and we would encourage other states to follow our lead and implement similar laws."

“There will be very limited exemptions to the new laws – for some vehicles written off because of hail damage, and for some classic antique cars."

it's quite interesting, because this means our premiums/excess for insurance might/indefinitely go up.

on the other hand, it means job loss for a lot of people, and total removal/downsizing of a whole industry in NSW/possibly Aus.

check this official media release April 8 2010

[trentmeyer23]

It was announced about a month ago on a late night news. At least there cant be anymore dodgy repairable write-offs on the roads. But in saying that there will be less jobs in the repair industry, but more jobs in manufacturing etc. as more new cars and used cars will be sold. I dont understand how premiums will go up, if they write the car off, its written off regardless and you get a payout, same same, it's just that it can be sold and fixed is all. No matter what though insurance will go up due to crime etc. as usual.

My 2 cents.

[SuperDave]

“There will be very limited exemptions to the new laws – for some vehicles written off because of hail damage,

Doesn't make sense. So they want to ban repairing cars that just cost too much to repair. I thought that's why they have statutory for cars deemed to be to unsafe to repair. So the NSW government wants to make more waste by having a lot more cars taken off of the road. Looks like we are turning into the USA.

and for some classic antique cars."

Curious to know what their version of a classic car is? One man's trash is another's treasure.

For example some would deem the R32 GT-R to be classic due to it's racing history, while others think the Triumpt TR-7 is a fantastic car.

[VF-X]

Written off coz of Hail damage can't be used? That's a complete waste and dumb..

[Silver-Aurion]

Watch a huge influx of cars coming over the boarder into Queensland and Victoria. The panel beaters here must be very happy with these news.

[Steven]

I can see this law being very effective to combat car rebirthing and assist in preventing car thefts. Naturally I don't believe on a blanket ban, I would prefer some form of tribunal be available for people to still opt to have their cars repaired if it can be proven said car has sentimental value, or value that cannot be clearly compared to its market value.

[juvenile]

Repairable write-off ? isnt that an oxymoron?

Like friendly fire or peace missile

It should never have happened,people are paying good money for nice cars,also prestige cars which some backyard **** has fixed up and makes a big profit while the unsuspecting new owner is risking his/her life AND money driving it.. A write-off is a write-off and thats that. As for hail damage that should be classified as something else..They should've been more specific from the beginning...How many near new cars have you spotted and thought hmmm something just not right with that car...HEAPS

[Hiro]

Repairable write-off ? isnt that an oxymoron?

Like friendly fire or peace missile

A write-off is a write-off and thats that.

There is a difference between a repairable write-off and a statutory write-off.

A repairable write-off is a vehicle that is damaged to the extent that the cost of the repairs exceed that of the insured value of the car, thus it is more financially viable for the insurance company to "write it off" than to repair it. The vehicle may still be serviceable if it is repaired, and can be registered if the repairs are carried out. The insurance company will pay out the insured value to the owner, and then sell off the wreck for a nominal value to a wreckers, scrap merchant or repairer.

A statutory write-off is a vehicle that is damaged to the extent that it could not be returned to a servicable or roadworthy state - ie there is sufficient unrepairable chassis damage, or damage that cannot be repaired without contravening ADRs. The vehicle identification number is struck from the records and as such can never be re-registered, however servicable components that are either repairable or undamaged can be swapped into another chassis.

[Silly_Rice]

There is a difference between a repairable write-off and a statutory write-off.

A repairable write-off is a vehicle that is damaged to the extent that the cost of the repairs exceed that of the insured value of the car, thus it is more financially viable for the insurance company to "write it off" than to repair it. The vehicle may still be serviceable if it is repaired, and can be registered if the repairs are carried out. The insurance company will pay out the insured value to the owner, and then sell off the wreck for a nominal value to a wreckers, scrap merchant or repairer.

That doesn't stop the the insurance company selling the car off to a repairer, who will do a dodgy job at repairing it to cut costs and maximise profit.

Insurance companies won't care who they sold the vehicle off to.

[Steven]

There is a difference between a repairable write-off and a statutory write-off.

A repairable write-off is a vehicle that is damaged to the extent that the cost of the repairs exceed that of the insured value of the car, thus it is more financially viable for the insurance company to "write it off" than to repair it. The vehicle may still be serviceable if it is repaired, and can be registered if the repairs are carried out. The insurance company will pay out the insured value to the owner, and then sell off the wreck for a nominal value to a wreckers, scrap merchant or repairer.

That doesn't stop the the insurance company selling the car off to a repairer, who will do a dodgy job at repairing it to cut costs and maximise profit.

Insurance companies won't care who they sold the vehicle off to.

and it isn't the insurance companies fault either - how can they be responsible for a car once they've auctioned it off?

An early 90s model vehicle can be written off by a dinged guard and door. An 80s model even easier than that. How do you think Mr. Enthusiast driving his restored and modified original Holden Torana feels that because Mrs. late-for-her-lawnbowls clipped his front guards whilst running a Stop sign he has to kiss goodbye to ever driving his car again on the road?

Although I reserve judgement about the effectiveness of any law until I read it word for word, I see this legislation as being badly thought of (like all new laws)

[DJKOR]

Repairable write-off ? isnt that an oxymoron?

Like friendly fire or peace missile

It should never have happened,people are paying good money for nice cars,also prestige cars which some backyard **** has fixed up and makes a big profit while the unsuspecting new owner is risking his/her life AND money driving it.. A write-off is a write-off and thats that. As for hail damage that should be classified as something else..They should've been more specific from the beginning...How many near new cars have you spotted and thought hmmm something just not right with that car...HEAPS

How about something like my old Sportivo? That was a repairable write-off due to flood damage. All that happened was water got into the floor pan no higher than the raised part where the seat rails mount to. There was no structural damage and the engine bay was untouched. Only little bits of surface rust where bolts attached to, but nothing that couldn't have been treated easily.

I agree with what has been said before, an I reckon the whole repairable/statutory write-off guidelines are good enough as they are.

[King Young]

Water damage such as your Aurion should be in a separate category.

Like you said, it didn't jeopardise the structural integraty of the vehicle. Therefore, it was just a "small fix".

Whereas, some of the cars with a more serious damage to the body and yet doesn't classify for ...

"A statutory write-off is a vehicle that is damaged to the extent that it could not be returned to a servicable or roadworthy state - ie there is sufficient unrepairable chassis damage, or damage that cannot be repaired without contravening ADRs. The vehicle identification number is struck from the records and as such can never be re-registered, however servicable components that are either repairable or undamaged can be swapped into another chassis." - Hiro

I don't think they should be allowed to re-register. (At least until a system has been devised to address the issue of dodgy repairs"

[.gorgz]

I think a ban on written off cars is a good idea, I've mentioned this before but I own a 4th gen prelude as well, the car itself was a repair write off and was actually wielded together with another half cut so the car isnt straight at all.. it was really my fault for not checking it out firstly so I still feel like a complete noob for actually purchasing the stupid thing, I had an accident in it about 3~4 years ago and came across the fact that it was a half cut while repairing it, and the sh#t thing is was that I had the rego cancelled while i was working on it so it means vicroads will need to give it a once over before its back on the road, now the cars repaired, still not registered though coz no one will give me a road worthy for it so the piece of sh#t sits in my drive way doing jack all, I might put up a post to wreck it soon so any potential honda owners or anyone that owns a lude, keep an eye out

[Hiro]

I think a ban on repairable write-offs is a _terrible_ idea, because it relies on the value of the car and the cost of repairs to determine if it is a write-off, not the actual physical damage. A bent front-end that is easily repairable might be covered by insurance on a locally made Falcon might classify as a write-off for an imported 3-series BMW, simply because parts and labour would be more expensive. You can get two essentially identical cars which differ purely on insured value, do the same amount of damage to them, and one will be repairable and one will be a write-off simply because the damage is greater than the worth of the lesser insured car but less than the one with more insurance. Think about an older car you might have owned. Older cars are generally insured for a lot less (because they are worth a lot less) yet damage tends to cost the same regardless of age.

I agree there is an issue with cars being declared repairable write-offs and then dodgily repaired by a chop-shop for a quick buck, but the issue is the chop-shops, not the insurance write-off. It's akin to banning roof insulation because of the dodgy installers and fly-by-nighters. Or to quote a classic saying, "throwing the baby out with the bathwater"

What you _will_ get now is people not insuring their old cars, simply so they don't run the risk of them being written off in a relatively minor accident and being sold-out from under them.