Car accident Total loss

[Traser]

Dear all seniors,

I need advice on the below.

Involved in accident , own fault. Car was badly damaged. Authorised workshop mentioned total loss.

My car is 5 years old and fully paid. COE & PARF value is about $36k. 2nd hand price in the market is about $75k with similar model and age.

Allianz Motor Protect comprehensive insurance will pay for market value if declared total loss. Allianz not covers the COE & PARF value.

Will I receive 2 separate settlements from Allianz & LTA?

Allianz pays the agreed market value of the car, example $75k.

LTA refunds the COE & PARF value $36k. How make the claim? How long it normally takes?

So total I will get a refund of $111k? Sound like too good to be true. 😅

Many thanks.

Edited August 20, 2023 by Traser

[Ct3833]

@Traser you will be very lcuky if your insurer is willing to pay you up to the market value, usually they will pay lower than market value, or rather, their so call market value is lower than the norm.  The insurer will pay you  the agreed market value less off COE and Parf. If the deal is so good like what you perceive, there will be many more cars having accident on the road 🤣🤣.

Because the COE and Parf are under your name ,  LTA will pay you back your balanced COE and Parf after you scrap your car, i remember within 2 to 3 weeks or the leadtime might have changed by now. 

Edited August 20, 2023 by Ct3833

[Traser]

@Ct3833 Normally how much is the discount from the market rate? 10%, 20%?

[Hamburger]

Hope TS escaped unscathed in the accident.

[Ct3833]

On 8/20/2023 at 12:06 PM, Traser said:

@Ct3833 Normally how much is the discount from the market rate? 10%, 20%?

I cant recall, my friend had it once before but the pay out was not enough for him to get a car of the same age that he had written. Try negotiate with your insurer to secure as much as possible. good luck.

[macrosszero]

Actually I don’t see why insurers shouldn’t pay market value for a like-for-like car, there are plenty of cars on the market to take reference from these days.

What insurers don’t cover (and TS fortunately isn’t liable for) is penalties for early settlement of the soon-to-be-scrapped car.

Otherwise what’s the point of calling it market value when it is supposed to be 10% off?

[Cheesey74]

On 8/20/2023 at 11:45 AM, Traser said:

Dear all seniors,

I need advice on the below.

Involved in accident , own fault. Car was badly damaged. Authorised workshop mentioned total loss.

My car is 5 years old and fully paid. COE & PARF value is about $36k. 2nd hand price in the market is about $75k with similar model and age.

Allianz Motor Protect comprehensive insurance will pay for market value if declared total loss. Allianz not covers the COE & PARF value.

Will I receive 2 separate settlements from Allianz & LTA?

Allianz pays the agreed market value of the car, example $75k.

LTA refunds the COE & PARF value $36k. How make the claim? How long it normally takes?

So total I will get a refund of $111k? Sound like too good to be true. 😅

Many thanks.

I totalled my car years back n insurer paid me so called market rate at that time (which is slightly lower than what used car dealer selling) but the coe & parf not refund to me, which make sense to me, why would we be getting back coe & parf?

 

[Ginyu]

On 8/20/2023 at 11:45 AM, Traser said:

Dear all seniors,

I need advice on the below.

Involved in accident , own fault. Car was badly damaged. Authorised workshop mentioned total loss.

My car is 5 years old and fully paid. COE & PARF value is about $36k. 2nd hand price in the market is about $75k with similar model and age.

Allianz Motor Protect comprehensive insurance will pay for market value if declared total loss. Allianz not covers the COE & PARF value.

Will I receive 2 separate settlements from Allianz & LTA?

Allianz pays the agreed market value of the car, example $75k.

LTA refunds the COE & PARF value $36k. How make the claim? How long it normally takes?

So total I will get a refund of $111k? Sound like too good to be true. 😅

Many thanks.

Be thankful that you are still breathing now and can type  that what matters.

Edited August 20, 2023 by Ginyu

[Traser]

@Hamburger TP got a bad bumper

[Traser]

@Ginyu Agreed.

[ER-3682]

I think TS Insurer the most pay back $70,000 to TS.

[inlinesix]

On 8/20/2023 at 12:32 PM, Cheesey74 said:

I totalled my car years back n insurer paid me so called market rate at that time (which is slightly lower than what used car dealer selling) but the coe & parf not refund to me, which make sense to me, why would we be getting back coe & parf?

For TS, insurer doesn’t want to take over the car.

 

 

[Ct3833]

On 8/20/2023 at 12:47 PM, inlinesix said:

For TS, insurer doesn’t want to take over the car.

 

 

Yes, otherwise they will have to do transfer and deregistration etc.  But this would also leave behind a loophole, some workshops may be willing to take over the car at scrap value, repair it and sell it like a underutilised car, accident free and engine smooth like butter.

[mersaylee]

Sticker or asking price in the market is just a guide...real market value also very subjective...the real transacted price of similar car and vintage also not readily available to buyer...aga aga there about just grab and move on...of course can nego a bit...just be thankful still able to live relatively unscathed and take money off insurer or workshop...

Sometimes insurer don't wish to deal with the repair...even with their own WS...go figure...

[Carbon82]

Best to seek clarification on how the pay out will be made. 2 possible scenario based on what I know. 

Scenario 1 - the preferred way

Insurance company will have your car transferred to them and issue you a cheque basing on market value (say $75K). As the ownership of the totalled vehicle is under their name, they will get the PARF and COE rebate direct from LTA. 

Scenario 2 - least preferred

Insurance company will pay you the market value minus the PARF and COE rebate at the point of assessment (i.e. $75K - $36K => $39K). You have to find your own scrap dealer to scrap your car, AFTER the insurance release the vehicle to you, which sometime could take months (meaning your PARF and COE rebate will be a few K lower than $36K) .

LTA will then pay you the PARF and COE rebate within 1 month upon receiving the deregisteration application. The plus point is that you can sell whatever you can sauvage, e.g. head unit, rim(s) and other accessories which have market value.

 

That aside, as what pointed out by other formers, market value is very subjective. Insurance company will typically pay lower than what you saw in car advertisement. Example, there are 10 cars of the same age and variant asking for say $65K - $75K. Insurance company likely will pay you $65K at best.

You have to do your own home work and negotiate with them to secure a higher payout. I have shared many times here my dealing with one of the largest insurance company on behalf of a friend and really have to bang table to get an additional $6K. 

Do bear in mind that advertise price does not equate to final transacted price as most dealers will mark up the selling price to factor for some level of negotiation, or to allow buyer to secure a high loan amount.

All the best. 

[Inlinefour]

On 8/20/2023 at 1:09 PM, Ct3833 said:

Yes, otherwise they will have to do transfer and deregistration etc.  But this would also leave behind a loophole, some workshops may be willing to take over the car at scrap value, repair it and sell it like a underutilised car, accident free and engine smooth like butter.

normally lady doctor owner third car with ultra low mileage 🙊🙉🙈

[mersaylee]

@Carbon82

That table probably costs more than 6k...let you bang some more they might just go out of biz 😅

 

[Beehive3783]

Even for market value, there are two different definitions:

1) the price you see on sgcarmart which includes the dealer mark ups

2) the price that is offered to you by dealers buying in your car, before their mark ups for the final selling price (option 1). There is a difference of around 10k compared to option 1

Make sure your insurer is offering you option 1, otherwise you will be at a disadvantage to get a replacement car.

Edited August 21, 2023 by Beehive3783