Shannons insurance question, cash settlement over repair.

Hell Cat · 16-06-2014, 03:33 PM

Hi guys.

some goose damaged my car trying to parallel park behind me, the guy who did the damage is refusing to claim on his insurance, I'm insured with shannons so I made a claim on my insurance and they agreed that I'm not at fault so I don't need to pay the excess.

Damage is scrapes on bumper and scraped tail light (black car)

I got a quote to repair from my choice of repairer and it turned out to be $1550, they would need the car for 5 days and I would need to pay for car hire (shannons won't cover hire)

I really don't want to be out of pocket to hire a car and I'm happy to live with the scratches for now and eventually get it repaired at a later date, plus I'm sure it will just get damaged again by another person later down the track trying to park...... (How hard is it to park a car for some people, sheesh)

So I'm wondering if you guys from experience know if you can opt for a cash settlement instead of repair? And if you have the right to insist on it or not?
I called shannons and the lady wasn't too sure.

Thanks.

xxx000 · 16-06-2014, 03:47 PM

you could do a claim yourself on the other party thereby bypassing insurance altogether

it involves letters of demand, then possible local court action. Not really difficult to do.

insurance companies won't generally pay you cash, they want the car repaired

GT450 · 16-06-2014, 03:48 PM

Now that Shannons know about the damage they will want it repaired, or if not, they could cancel your insurance as insured vehicles should be defect free or they would not issue insurance inthe first place.
Remember also, that Shannons will want to collect reimbursement from him or his insurance company and if you don't claim now you may not get it fixed and have your insurance cancelled.
GT450

ebv8 · 16-06-2014, 04:38 PM

i wrote a letter saying i was going to repair my car myself after some clown rear ended me and they paid me $1800 by EFT, i fixed the car myself for free and kept the change.

GT450 · 16-06-2014, 04:55 PM

The idiot that caused it doesn't want to claim on insurance so that scenario is unlikely . You pay your premiums to let the companies fight these sort of claims so it seems silly not to use it when necessary. Shannons wont pay out if another company is actually liable, they will fix it and reclaim the costs.
GT450

cram_it_frog · 16-06-2014, 06:01 PM

I had some drunk damage my car In Wagga last year and he was ordered to pay the damages but so far 3 years I have not seen a cent I asked local court if they can find him and then I would have him served but they cannot find him now

It is ok getting the courts to order payment but if the person does not want to pay then if you have the time and money to chase them to god knows where and spend a fortune you may get your money back

I do not understand the legal terms but a court order made out for payment of damages is not worth the paper it is written on .

One lawyer said there is million,s $$ of outstanding warrants out there

The actual fine is totally different that is linked to your license so if you are fined and do not pay you may loose your license

I asked a lawyer if they could do the same with money owing for orders to pay for damage to some one property like in your case " no way the system is clogged now if they did that the system would not handle it,

I am lucky is a way i damaged 2 disks in a accdent one was removed and now I eligible for a disabled permit so I do not park in normal spots and keeps me away from some of the idiots

One final word why cannot they teach people to drive so many people get there license in a tiny little Hyundai and then go out a buy a much larger car and find they have not got the ability to drive the dam things

I learned to drive with no power steering or brakes 1971 Holden Belmont may be more people should do the same

good luck with your quest

**GasoLane** · 16-06-2014, 06:17 PM

Quote:

Originally Posted by Hell Cat

Hi guys.

some goose damaged my car trying to parallel park behind me, the guy who did the damage is refusing to claim on his insurance, I'm insured with shannons so I made a claim on my insurance and they agreed that I'm not at fault so I don't need to pay the excess.

If he's not claiming on his insurance how did he expect you to be reimbursed for the damage? Is he going pay for the repairs himself?

I mean, you don't just whack someone's car then say "sorry mate looks like you'll have to use your insurance company because I don't want to use mine".

Hell Cat · 16-06-2014, 06:36 PM

Quote:

Originally Posted by GasOLane

If he's not claiming on his insurance how did he expect you to be reimbursed for the damage? Is he going pay for the repairs himself?

I mean, you don't just whack someone's car then say "sorry mate looks like you'll have to use your insurance company because I don't want to use mine".

Initially that's pretty much what he said, because he believed he didn't do it and wouldn't give me his details, it was only when the police called him up and reminded him that it's an offence to leave the scene of an accident that he admitted he did it.

He finally made a claim today on his insurance, I called them up and they were really rude/abrupt on the phone for some reason, demanding I take my car to be assessed at their preferred repairer at a time that suits them and wouldn't come to a reasonable time that suits my work hours, and also insisted they wouldn't pay for car hire.
Should I just leave it up to my insurance to sort out or should I battle it out with his insurance? My excess has been waived with my company.

Ideally it, I would prefer a cash settlement and can then get the car repaired a lot quicker (and abit cheaper) by a friend who is a qualified panel beater and painter.

8 Years ago I remember a car rear ended my ute and I remember getting a $4500 cash settlement from the other persons company because they didn't want to repair it as it was custom painted (wasn't a write off either)

Stabswache · 16-06-2014, 06:47 PM

Battle them. They rely on your complacency, do not give it away your dignity so easily.

commonrails · 16-06-2014, 08:06 PM

Your insured with shannons make the claim with them get it repaired at your repairer of choice, then demand the person at fault insurance company pay for a hire car. If they give you the run around say that obviously the person at fault was driving without "due care" and why should I personally be finically disadvantaged by his actions. If the answer is still no then as (said above) sent a letter of demand for reimbursement for the cost of the hire car to the person at fault, if they don't respond or pay have the matter heard in the small claims court.

Bill M · 16-06-2014, 08:16 PM

Quote:

Originally Posted by Hell Cat

He finally made a claim today on his insurance, I called them up and they were really rude/abrupt on the phone for some reason, demanding I take my car to be assessed at their preferred repairer at a time that suits them and wouldn't come to a reasonable time that suits my work hours, and also insisted they wouldn't pay for car hire.
Should I just leave it up to my insurance to sort out or should I battle it out with his insurance? My excess has been waived with my company.

Which is the other Insurance company? Sounds like one to avoid.

Hell Cat · 16-06-2014, 09:34 PM

The bloke is with racq, maybe it was just the person I got on the phone but they were an ***, kept cutting me off mid sentence.
They said I could send them receipts for car hire and they would "consider" reimbursing me but they wouldn't guarantee I would. what's also strange is that racq don't guarantee repairs for life on the other person car if they repair it.

I will ask my insurer if they can give a reduced cash settlement, if they cannot I will get my insurer to repair it because they offer guaranteed repair.... They only downside is they won't cover car hire upfront, I'm seriously not in the financial position to be outlaying for car hire right now.

BadMax · 16-06-2014, 09:35 PM

If I can offer some advice.

Continue your claim with Shannons and let them sort through the BS with the other insurer, is one option.

Go to a panel shop who is competent and have them liase with the other insurer, it's called a third party claim. The other insurer CAN NOT force you to do anything! It's your property and you don't have a contract with them. What they have done by trying to force you to their repairer is illegal in Australia, it's third line forcing.

Or, go to a panel shop who will do a 'third part recovery', which you assign your rights over for them to act on your behalf. They will then sure the insurer for the cost of repairs.

In every single instance you are entitled to a replacement vehicle. Depending on what state you are in, there is a rental company who will bill the insurer direct on your behalf.

If you're in Melbourne I can point you in the right direction. If you're only interested in a cash settlement so you can pocket the money, I'm not interested in helping.

Hell Cat · 16-06-2014, 09:56 PM

Thanks for that bit of info on car rental, I'm in brisbane.
My mrs just found out then that my father inlaw might be able to lend me his hilux if needed.

The repair shop who did the quote is a highly reputable repairer and do lots of luxury/imports.

superfly · 16-06-2014, 10:05 PM

I'm with Shannons and have made not at fault claims. I just go through them so that I don't have to deal with the other insurance's company's rules. Makes it much easier. I can get it fixed when I want and where I want. Shannons then deals with the other insurance company.

Not sure about cash settlement, never done that. I would think that it wasn't possible unless they got some sort of invoice that they would pay on. But a previous poster has said that he's done it, so I guess it must be possible.

I used Exclusive Auto Centre for my claims and they did a fantastic job (even had another repairer comment on how good the paint match was). Don't know about rental cars, I just caught public transport to work and I walked to Exclusive Auto when the car was ready. Never looked into it. Next time I think I will

Good luck!

brismike · 16-06-2014, 10:57 PM

Lots of good info and advice in this thread for anyone who might get into the same situation . . Thanks guys.

Mike

xisled · 17-06-2014, 11:43 AM

Read your PDS.

http://www.shannons.com.au/library/d...urance_PDS.pdf

Read page 44

Speak to your insurance company, this will be the best way to get your answer and they can tell you exactly what will happen.

The basics are, they can pay you the money, but it is up to them to make the decision.

BadMax · 17-06-2014, 08:48 PM

Quote:

Originally Posted by superfly

I just go through them so that I don't have to deal with the other insurance's company's rules. Makes it much easier. I can get it fixed when I want and where I want.

That's the thing, if you're not at fault and go through the at faults insurer, they CAN NOT tell you what to do with your car!

Hell Cat · 17-06-2014, 09:16 PM

Update.

Shannons assessed the quote and pictures of the damage, the assessor called me up and and said they have approved to get it repaired, I asked if I could get a cash settlement instead and he said yes. Simple.

Not complicated at all really?

I'm glad I went with my insurance because his insurance people were assholes to deal with on the phone, I'm glad I don't have racq assistance either.

ebv8 · 17-06-2014, 09:34 PM

good work, i had a call from shannons today and they agreed to increase my insured value.

the shannons rep was pretty keen to talk cars too so that made me happy

ebv8 · 17-06-2014, 09:36 PM

also i read the shannons PDS and they say they will either pay for repairs or pay you to repair the car and they do offer a 14 hire care reimbursement .

danzvtil · 17-06-2014, 10:53 PM

Quote:

Originally Posted by Hell Cat

Update.

Shannons assessed the quote and pictures of the damage, the assessor called me up and and said they have approved to get it repaired, I asked if I could get a cash settlement instead and he said yes. Simple.

Not complicated at all really?

I'm glad I went with my insurance because his insurance people were assholes to deal with on the phone, I'm glad I don't have racq assistance either.

That's, great, but you need to clarify whether the cash settlement comes directly from the other driver or shannons. If shannons are paying you do they put any obligation for you to repair the car, and have it inspected as such. As stated on here previously, if you intend to continue cover with unrepaired damage to the car, they may reduce its insured amount or refuse cover completely.

Hell Cat · 17-06-2014, 11:05 PM

They will pay it out and then get the costs off the other blokes company by the sound of it.
I'm going to get it repaired myself when time permits and will send in pictures.

So far shannons have been good, I've heard people have had bad experiences with them.
My xm coupe is currently on laid up cover for a fair amount. It's good to know just incase anything would ever happen to it..... I would die inside if anybody was to crash into my xm.

The Yeti · 17-06-2014, 11:45 PM

Try these guys http://www.itwasntmyfault.com.au

**Silver Ghia** · 17-06-2014, 11:49 PM

Quote:

Originally Posted by danzvtil

That's, great, but you need to clarify whether the cash settlement comes directly from the other driver or shannons. If shannons are paying you do they put any obligation for you to repair the car, and have it inspected as such. As stated on here previously, if you intend to continue cover with unrepaired damage to the car, they may reduce its insured amount or refuse cover completely.

Thats what I was thinking. That it needs to be repaired ASAP after you receive the insurance money.

xisled · 18-06-2014, 08:22 AM

Quote:

Originally Posted by Silver Ghia

Thats what I was thinking. That it needs to be repaired ASAP after you receive the insurance money.

An insurance company cannot cancel a policy mid-way through (unless fraud has taken place or they have written off the car etc). They cannot offer renewal at renewal time, but if you have a policy that is either paid or paid by the month, it is basically a 12 month contract.

If you did need to make another claim, they may reduce the payout figure or ask the OP to pay some money towards the repair, if the damage is in the same area and that damage had to be repaired at the same time.

If it is a claim for another area of the car, then that is fine and it will not affect the claim in anyway.

If at renewal time, and they don’t offer insurance because of damage, then the OP can cross that bridge when it happens.

Dave3911 · 18-06-2014, 12:30 PM

Everyone gets really caught up in what the insurance company has to say about hire cars and out of pocket expenses - at the end of the day you need to start thinking about it as a civil debt between you and the other person.

Have you suffered a loss or additional costs due to the other persons action? Yes, then you have a civil claim against them. The fact that their insurance company is (or isn't) involved on their behalf is irrelevant. Most good panel shops will happily organise a hire car for you through a third party legal firm that will take on the civil proceedings for you. If your panel shop doesn't do this, then the service that "The Yeti" linked to will suffice. Do some googling, numerous companies offer this service.

All they do, is provide a hire car to you and get you to sign on the dotted line that you will pay for the hire car if the civil action fails. Especially if insurance companies are involved and the other insurance company has already accepted liability for the accident, it's basically a free kick. Don't get me wrong, if you ring the insurance company, they will say no.... but in the end, they all pay. It can get trickier if the other party isn't insured and you take civil action against the other party directly (some of the third party legal services wont even take these cases on - some will).

I used one of these services last year when a co-worker ran into my G6E whilst it was parked. There was never an issue of who was at fault as not only was it all on CCTV, but my co-worker openly admitted fault at the time and to her insurer. I got my car repaired at my preferred repairer and had a fit-for-purpose (ie. Full size sedan for my 3 x kids car seats - dont accept Hyundai getz) car the entire time. Her insurance company declined to pay for my hire car and my third party legal firm filed civil proceedings in the magistrates court. Both her and I even got summons' to attend court served on us. It was quite comical and became quite the joke at work. In the end, at concilliation, her insurance company paid everything and a huge fee to my third party legal. Neither she, or I, ever paid a cent. We also never had to go anywhere, or do anything. The only "inconvenience" was a few quick phone calls and some court paperwork being served.

Ludicrous system really.

xisled · 18-06-2014, 01:15 PM

Quote:

Originally Posted by Dave3911

Everyone gets really caught up in what the insurance company has to say about hire cars and out of pocket expenses - at the end of the day you need to start thinking about it as a civil debt between you and the other person.

Have you suffered a loss or additional costs due to the other persons action? Yes, then you have a civil claim against them. The fact that their insurance company is (or isn't) involved on their behalf is irrelevant. Most good panel shops will happily organise a hire car for you through a third party legal firm that will take on the civil proceedings for you. If your panel shop doesn't do this, then the service that "The Yeti" linked to will suffice. Do some googling, numerous companies offer this service.

All they do, is provide a hire car to you and get you to sign on the dotted line that you will pay for the hire car if the civil action fails. Especially if insurance companies are involved and the other insurance company has already accepted liability for the accident, it's basically a free kick. Don't get me wrong, if you ring the insurance company, they will say no.... but in the end, they all pay. It can get trickier if the other party isn't insured and you take civil action against the other party directly (some of the third party legal services wont even take these cases on - some will).

I used one of these services last year when a co-worker ran into my G6E whilst it was parked. There was never an issue of who was at fault as not only was it all on CCTV, but my co-worker openly admitted fault at the time and to her insurer. I got my car repaired at my preferred repairer and had a fit-for-purpose (ie. Full size sedan for my 3 x kids car seats - dont accept Hyundai getz) car the entire time. Her insurance company declined to pay for my hire car and my third party legal firm filed civil proceedings in the magistrates court. Both her and I even got summons' to attend court served on us. It was quite comical and became quite the joke at work. In the end, at concilliation, her insurance company paid everything and a huge fee to my third party legal. Neither she, or I, ever paid a cent. We also never had to go anywhere, or do anything. The only "inconvenience" was a few quick phone calls and some court paperwork being served.

Ludicrous system really.

If you have made a claim on your own insurance and you do go through a recovery company, read your PDS as your insurance company may not continue your claim if you go through a recovery company.

Also please make sure you do your research before using any recovery company as sometimes you can end up paying costs. Basically they are solicitors, back many years ago, these guys were known as ambulance chasers.

LTDHO · 18-06-2014, 01:33 PM

I love reading these threads.

Dauphin · 18-06-2014, 01:57 PM

To the OP, I'm glad there was a good result from this bingle, by the sound of it. Hope it gets fixed and is as good as new.

I had a similar situation in that I had some cosmetic damage from behind and I went in to see about having it fixed at a certain repairer. The lady who worked there telephoned the driver at fault and the driver didn't want to pay for it or go through insurance (she was fine at the scene of the accident, but now had seemed to change her mind).

The worker then said to her that it is going to be fixed and could cost thousands, so they can either send her the bill or she can pay a smaller excess through her insurance. That shut her up quickly, I left the car there that day and simply picked it up when they called me. Couldn't have been easier!