Urgent Insurance Advice

[BLACK 346]

Hey people,

I have a question regarding an insurance claim I have lodged for my ute,

Ok first some history. When I purchased the ute a few months back I rang Shannons to put fully comprehensive on it. We purchased it for $4300 from a bloke who desperately needed to offload it. When I told the Shannons rep the purchase price he advised me that they could not insure it for any more than that, I argued that it was worth more, but he said that is their policy. Long story short, yesterday and old block backed into the tray pushing the left side of the tray in, no other damage. Today the Shannons assessor rings me and tells me it may be a total loss and that I am under insured it is worth about 6 grand (the bleeding farkin obvious). When I told him they would not insure it for that amount he tells me that I have been misinformed. Where do I stand? He was talking about me buying the car back after total loss, what does that mean? Pretty pissed off at the moment as we have just had the rear brakes done, the trans flushed, put carpet in it, new tyres all to the tune of about $1500 :vpo:

Going somewhere to try and calm down now, hopefully shannons do the right thing by me, how quick things change in a day, was only singing their praises on here yesterday.

[boggers007]

Hey people,

I have a question regarding an insurance claim I have lodged for my ute,

Ok first some history. When I purchased the ute a few months back I rang Shannons to put fully comprehensive on it. We purchased it for $4300 from a bloke who desperately needed to offload it. When I told the Shannons rep the purchase price he advised me that they could not insure it for any more than that, I argued that it was worth more, but he said that is their policy. Long story short, yesterday and old block backed into the tray pushing the left side of the tray in, no other damage. Today the Shannons assessor rings me and tells me it may be a total loss and that I am under insured it is worth about 6 grand (the bleeding farkin obvious). When I told him they would not insure it for that amount he tells me that I have been misinformed. Where do I stand? He was talking about me buying the car back after total loss, what does that mean? Pretty pissed off at the moment as we have just had the rear brakes done, the trans flushed, put carpet in it, new tyres all to the tune of about $1500 :vpo:

Going somewhere to try and calm down now, hopefully shannons do the right thing by me, how quick things change in a day, was only singing their praises on here yesterday.

He is pretty much saying its a right off and they will just give you the $4300 for the car and they would then go sell it off at an auction in which you could buy the car back at the auction for watever it may sell for. Only problem with this is you would have to still buy back the car and fix it for the $4300 for any of that to work in your favour.

[team illucid]

They must have changed their policy then - we insured the Clubsport for $9K more than what we paid for it due to the excellent condition and low K's - that was in June this year.

[Epic_Dragon]

thats veyr strange they argued with you re the value, shannons do an agreed value. good luck and i hope it is sorted swiftly.

[BLACK 346]

I dont think their has been any policy change Kurt, the assessor said I had been given some misinformation, which to me means the guy that sold me the product incorrectly advised me, thus causing me to be under insured.
They record these conversations I believe? Why should I end up out of pocket due to Shannons stuff up? Am I wrong? Oh well, the outcome of this will determine whether we stay with Shannons or not, simple as that. We currently pay them around $1920 a year for all of our policy's, so have paid them a hell of a lot more than the repair over the last 5.5 years, with this being our first claim. Shouldn't get ahead of myself I suppose, will take a chill pill and see how it pans out :yup:

Thanks for the replies kurt and Boggers.

[BLACK 346]

thats veyr strange they argued with you re the value, shannons do an agreed value. good luck and i hope it is sorted swiftly.

That is what is pissing me off, I have always done agreed value, but in this case it seems I would have been better off with market. If the clown that sold me the product new what he was doing this would be no issue and it would be repaired. The Shannons assessor also said it is an issue due to them having to claim the money back from the other blokes insurance (APIA), as they can make things difficult if Shannons repair it and they consider it not worth repairing ie Car is insured for $4300 and repairs cost $4100, APIA might come back and ask why they did not write it off. That was the exact example the Shannons assessor gave me.

[silvervyss]

My xt is insured with shannons; I remember them telling me that if my car is written off, they pay me out and I keep the wreck.

[VY5.7LTR]

If the assessor is says you were missinformed then ring Shannons and ask for a record of all calls logged against your Policy from the 1st day you opened the policy to the call you are on right now.

Listen over it with your lawyer or someone who understands the insurance game and see where you legally stand.

If you believe something is amiss you can request someone through the Insurance & Finance Omsbudsman service to look over your case file.

[BLACK 346]

My xt is insured with shannons; I remember them telling me that if my car is written off, they pay me out and I keep the wreck.

Ok, if that was the case then It wouldn't be so bad, I could use the money to get it repaired and would not be out of pocket. I am sure he said I had to buy the car off them though, will double check when I next speak to him :cheers:

[BLACK 346]

If the assessor is says you were missinformed then ring Shannons and ask for a record of all calls logged against your Policy from the 1st day you opened the policy to the call you are on right now.

Listen over it with your lawyer or someone who understands the insurance game and see where you legally stand.

If you believe something is amiss you can request someone through the Insurance & Finance Omsbudsman service to look over your case file.

Thanks mate, will see how things go after the crash repairs assess it.

[Toddler78]

Buy back = Once the car is written off you have first right to buy the wreak back off them for an agreed amount (usually the lower end of the scale to what they expect to get at auction) ie if they thing they will get 2000-3000 for it at auction then they might give you a figure of $1800. They dont just give it back to you for nothing.

recheck your policy, most agreed value policies also state that they will pay you out either the agreed value or market value which ever is more. At the end of the day they would have based your premium on at least the market value of the car. Id personally wait for the outcome of what happens re write off and payout figure and then go from there. No point stessing out about it until it comes to that.

[v8dude78]

Long shot here but might be worth a try.

You could try cancelling the claim you have made with shannons and just go through the other guys insurance.

You will have to get the claim number off the guy who hit you and contact his insurance company, now depending on what they say they may tell you to get a couple of quotes and one of their asessors will asesses your car and make a decision if it is to be repaired or not.

But when he makes his decision it will based on market value and not what shannons has it valued at.
Couple of things,
1 you will have to wait till the other guy has paid his excess
2 if the repairs are close to market value they might write it off or ask you if you want it repired.
Also if the write it off they have to pay you market value not sure if you can buy the write off back though ???

Speak to your repairer about the above and see if they can help

[BLACK 346]

Buy back = Once the car is written off you have first right to buy the wreak back off them for an agreed amount (usually the lower end of the scale to what they expect to get at auction) ie if they thing they will get 2000-3000 for it at auction then they might give you a figure of $1800. They dont just give it back to you for nothing.

recheck your policy, most agreed value policies also state that they will pay you out either the agreed value or market value which ever is more. At the end of the day they would have based your premium on at least the market value of the car. Id personally wait for the outcome of what happens re write off and payout figure and then go from there. No point stessing out about it until it comes to that.

Hey Tod. So bottom line is Shannons come out in front and I come out behind. If they had to pay to have it repaired and the repairs cost $4300, I would have the car back and they would be out of pocket $4300 (the agreed value). If they write it off, they give me the $4300 and then get to sell the car recouping some of the $4300, so are better off.
You are right, no point worrying about it until I find out what is happening.

[Toddler78]

Hey Tod. So bottom line is Shannons come out in front and I come out behind. If they had to pay to have it repaired and the repairs cost $4300, I would have the car back and they would be out of pocket $4300 (the agreed value). If they write it off, they give me the $4300 and then get to sell the car recouping some of the $4300, so are better off.
You are right, no point worrying about it until I find out what is happening.

Correct, it will be written in the policy somewhere that in the advent of a total write off you sign over ownership of the car to the insurer and they can do what they want with it. I dont know exactly how it works, I mean Shannons may pay you out $4300, but sell the car for $2000, they may then only hit up APIA for the balance ie $2300. However in the situation that they can recoup all of their costs (getting all moneys from APIA) then I cant see why they should get ownership of the car. - maybe they dont in an not at fault claim

[chillicatqld]

Didnt you say that someone backed into you?
If so, why are you even going thru your insurance company?
The person who backed into you is responsible, and their insurance company will not know your purchase price and will most likely not be writing it off?

[GKW]

If you wish to fight them (and I would), you'll need to go through the appropriate complaint processes first with any insurer in order to have the matter reviewed etc, before you can lodge a complaint with the Omsbudsman.

Get the complaint (and all the facts) to them in writing asap, as the law requires them to respond to and then resolve / conclude any matters raised in such a fashion within a time period (which isn't that long) as per the legislation that governs insurers. So get the complaint in and get the clock ticking. It's no guarantee that you will get a result, but I think your chances will improve especially if you can prove they misled you initially.

When you next speak to them, if you haven't alreday get them to spell out the complaints / appeal process you can follow and the timeframe in which they have to respond to you. Under law they have to provide you with this information.

Good luck.

BTW: It's a shame insurers don't see the commercial aspect of their actions. I suspect just this thread has already lost them some potential business which may well have a greater $$ value than the claim or cost of repairs.

[vicarious]

Didnt you say that someone backed into you?
If so, why are you even going thru your insurance company?
The person who backed into you is responsible, and their insurance company will not know your purchase price and will most likely not be writing it off?

the dude that backed into him must not have insurance

[BLACK 346]

the dude that backed into him must not have insurance

Yes he does, as stated earlier he is with APIA. I have always thought that you go through your own insurance company and they claim back from the other party insurer? Shannons seem to think this is the way it is done.

[lease1]

You make the claim through your insurance who pays you the agreed value/market value on your policy. They then chase the at fault party/insurer for the money.

[v8dude78]

Yes he does, as stated earlier he is with APIA. I have always thought that you go through your own insurance company and they claim back from the other party insurer? Shannons seem to think this is the way it is done.


As i pointed out before it might just be easier going through the other persons insurance.

Had a girl hit the back of my old VQ Statesman a few years ago
Repairs came to $5500
My insurance valued the car at $5500 so went through the girls insurance company instead.

They asked if i wanted to be payed out i said no and they had to pay the $5500 to fix the damage on a car that had a market value of $5500

Bottom line, she was at fault and i wanted my car repaired so they had to pay up :)


Long shot here but might be worth a try.

You could try cancelling the claim you have made with shannons and just go through the other guys insurance.

You will have to get the claim number off the guy who hit you and contact his insurance company, now depending on what they say they may tell you to get a couple of quotes and one of their asessors will asesses your car and make a decision if it is to be repaired or not.

But when he makes his decision it will based on market value and not what shannons has it valued at.
Couple of things,
1 you will have to wait till the other guy has paid his excess
2 if the repairs are close to market value they might write it off or ask you if you want it repired.
Also if the write it off they have to pay you market value not sure if you can buy the write off back though ???

Speak to your repairer about the above and see if they can help

[R8HSVHRT]

Mate do not complicate things just cancell the claim with shannons ring up the person in fault or his insurance company and get a claim number go see your panel beater a do a third party claim somthing insurance companys dnt like but they pay up in the end

[BLACK 346]

Mate do not complicate things just cancell the claim with shannons ring up the person in fault or his insurance company and get a claim number go see your panel beater a do a third party claim somthing insurance companys dnt like but they pay up in the end




As i pointed out before it might just be easier going through the other persons insurance.

Had a girl hit the back of my old VQ Statesman a few years ago
Repairs came to $5500
My insurance valued the car at $5500 so went through the girls insurance company instead.

They asked if i wanted to be payed out i said no and they had to pay the $5500 to fix the damage on a car that had a market value of $5500

Bottom line, she was at fault and i wanted my car repaired so they had to pay up

Ok, didn't know I could do this, will go down this path if they refuse to repair it, thanks for the advice.

[Spoolin]

Biggest issue I see here is both parties are probably unknowingly insured with Suncorp, ie; AAMI, GIO, Just Cars, Shannons, APIA to name a few. The repair industry loathe dealing with them.

As has been suggested, retract your claim and claim against the other party, then find a panel shop who will do a third party recovery. You'll need to find a shop who is not Suncorp affiliated.
They will quote, send through the pricing and essentially demand the repairs. If they want to write your car off do some market research, by this I mean find three examples of near exact examples which are for sale and present them with the prices. Do not and I repeat do not disclose your purchase price. The assesor will always ask you 'what do you think it's worth' in an attempt to catch you out at a moment of weakness.

This will be a long and drwan out process.

[BLACK 346]

Biggest issue I see here is both parties are probably unknowingly insured with Suncorp, ie; AAMI, GIO, Just Cars, Shannons, APIA to name a few. The repair industry loathe dealing with them.

As has been suggested, retract your claim and claim against the other party, then find a panel shop who will do a third party recovery. You'll need to find a shop who is not Suncorp affiliated.
They will quote, send through the pricing and essentially demand the repairs. If they want to write your car off do some market research, by this I mean find three examples of near exact examples which are for sale and present them with the prices. Do not and I repeat do not disclose your purchase price. The assesor will always ask you 'what do you think it's worth' in an attempt to catch you out at a moment of weakness.

This will be a long and drwan out process.


Thanks mate. The funny thing is, it was the Shannons assessor that told me it is worth more than I have it insured for. When I told him that the Shannons saleman refused to insure it for any more than what I payed for it, he told me that was crap and that I had been misinformed. If he rings back and tells me they are writing it off, I will do as advised and cancel the claim along with all my policies. What If the ute had been given to me by my old man or something, or off a mate for a carton of piss, do I then only insure it for a carton of beer? I have been wronged here by Shannons and will not roll over. Also, why to APIA need to know how much I am insured for? What if I only had 3rd party, I do not see how my insured value has anything to do with it in this case. It should be the market value they are looking at, which is according to Shannons in the vicinity of 6k.

Thanks everyone who has replied, once again all very helpful and useful information, the main reason I still come on this forum :thumbsup:

[BLACK 346]

Well thanks to a lot of leg work and effort by a very helpful Shannons assessor finally a crash repairer has been found that will fix the dent rather than replace the whole tray. Repairs now going to cost $2000 rather than the original $4k plus. They are going to replace the quarter panel, not an easy job apparently due to the limited access in that area. Was also advised by the assessor to take it straight to Shannons at Clarence Gardens once it is fixed and get the agreed value increased to $6100. He also said if that sort of thing happens again when setting up an agreed value policy, hang up and ring back until you get someone that knows what they are talking about, luckily it didn't cost me this time.

[VY5.7LTR]

Well thanks to a lot of leg work and effort by a very helpful Shannons assessor finally a crash repairer has been found that will fix the dent rather than replace the whole tray. Repairs now going to cost $2000 rather than the original $4k plus. They are going to replace the quarter panel, not an easy job apparently due to the limited access in that area. Was also advised by the assessor to take it straight to Shannons at Clarence Gardens once it is fixed and get the agreed value increased to $6100. He also said if that sort of thing happens again when setting up an agreed value policy, hang up and ring back until you get someone that knows what they are talking about, luckily it didn't cost me this time.

Good to hear Black 346. Hope it comes back better than before.

[kangavxss]

If they recorded the conversation you had with the fella you dealt originally, then you have proof that you were misinformed. I had a similar problem when I tried to claim a cancelled holiday with a travel insurance company. They didnt want to pay up, but through the recorded info. it was discovered they sold me the wrong insurance policy, meaning I was misinformed and was prejudiced against. They paid my claim in full.. I would pursue it further.
Good luck

[michaels1v8]

Good to hear Black 346. Hope it comes back better than before.

+1 that is great service. its nice to deal with someone who takes pride in their work rather than it being just another job. Clearly he must be a fellow enthusiast who understands its not just another car which is what you'd expect dealing with shannons. I'd definately consider putting a good word in for this guy who helped you out once all this is over.

[team illucid]

Good to hear Rod.

[BLACK 346]

Good to hear Black 346. Hope it comes back better than before.

Thanks mate.


If they recorded the conversation you had with the fella you dealt originally, then you have proof that you were misinformed. I had a similar problem when I tried to claim a cancelled holiday with a travel insurance company. They didnt want to pay up, but through the recorded info. it was discovered they sold me the wrong insurance policy, meaning I was misinformed and was prejudiced against. They paid my claim in full.. I would pursue it further.
Good luck

I am just happy to be getting it fixed, as far as I am concerned the Shannons assessor has righted the wrong and I will just move on and be happy :)


+1 that is great service. its nice to deal with someone who takes pride in their work rather than it being just another job. Clearly he must be a fellow enthusiast who understands its not just another car which is what you'd expect dealing with shannons. I'd definately consider putting a good word in for this guy who helped you out once all this is over

I will most certainly be giving Shannons a call and inform them how happy I am with his efforts. When I went to Repair Link to see what was happening with the ute the staff there seemed to have a very high opionion of him, telling me that I was in good hands and he will look after you.


Good to hear Rod.

Thanks Kurt :cheers: