Commercial Fleet Insurance Questions

[Citroënbender]

Related to my ute being hit by a van driver last week. Apparently their work vehicle fleet is insured by AAMI.

My problem is, under my own policy the ute would be considered an economic loss per sum insured, from the collision it now has:

• Depression (very minor) to the quarter panel
• Scuffing to the sill
• Driver’s door needing replacement
• Front guard needing replacement
• The hinge pillar features a small inwards kink near its base from the lower hinge being pushed back
• Possible bent rack end(s) as alignment is slightly changed
• Possibly cracked door mirror swivel

I don’t have the time/energy to find another ute of equal specifications and go through hoops again to personalise it, nor am I looking for any upgrade, or money in my pocket. So it makes sense in that way, to repair.

What I’m not sure about, is how fleet policies deal with third party claims, if I were to pursue it myself - rather than through my insurer. Would it come under the same claim and excess as their own vehicle’s damage, or be a separate event? Also, are fleet excesses lower or higher than domestic policies?

[hawke]

M Citroen,

It’s irrelevant what their policy says or does. If they are at fault or negligent and you have incurred a loss, you are entitled to be compensated for your loss.

You need to send them a letter of demand. Your loss would be the cost of repair, and any consiqental loss - such as hire of replacement vehicle etc.

[simon varley]

you have insurance yourself, use it, and let them fight it out. if your insurer wants to declare it a loss, then offer to buy it from them.

I really wouldn't consider trying to work directly with the other party's insurer. Remember that they are not YOUR friend.

[Citroënbender]

you have insurance yourself, use it, and let them fight it out. if your insurer wants to declare it a loss, then offer to buy it from them.

If my sum insured was $2K higher, yes, I’d leave it to them. But to accept a non-WOVR total loss puts me in a position of having a car that cannot be comprehensively reinsured (by the same company who declared it a loss) until it’s assessed by the insurer post repair (or so I was told by Shannons in 2013).

If a letter of demand for minor accident damage is forwarded to an insurer by a fleet owner, I presume insurers typically ignore it until a civil claim is lodged - is this correct?

[hawke]

“If a letter of demand for minor accident damage is forwarded to an insurer by a fleet owner, I presume insurers typically ignore it until a civil claim is lodged - is this correct?”

A smart insurer accepts that a fast claim is a cheap claim. Sadly, many are not smart.

Not necessarily. In your case, it’s irrelevant. You are dealing with the organisation that caused the loss - not their insurer.

[danzvtil]

Some fleets self insure, or pay out of pocket for smaller claims. But the procedure is the same, open a claim with your insurer (that’s why you pay them), let them fight the other party for the particulars. Take the payout and offer to buy your Ute back if you are so inclined.

[Citroënbender]

Interestingly, I late on Wednesday fielded a call from the fleet manager, who apparently owns an early Mustang. In fairness, he was probably essentially wanting to see what sort of attitude I had and how I described the collision; it was a cordial enough discussion. He also commented it was their fellow’s first claim in over 300K of driving for them.

Then on Thursday, two calls from AAMI. First to confirm everything the other driver had submitted; again - no problem for me, and then they gave me the option of dealing with them for the claim vs my own insurer. I sought their assurance that no decisions to write the vehicle off would be made without consulting myself - they stated that was the current practice. So in that light, I agreed to their management of my claim, using my preferred repairer for this job. Followed by a call from some chap who was very keen to get me in a loan car for the duration of repairs (I’m not really sold on this part, unfamiliar vehicle means more risk).

So it looks like the way forward echoes the prior comment by hawke: “A smart insurer accepts that a fast claim is a cheap claim.” Credit where it’s due; thus far I cannot fault the communication from AAMI - clearly set out, by clear-speaking people.

I’ve had intense frustration in the past with both NRMA and Allianz, hence my trepidation about insurers.

Thursday also saw the alignment checked; it was slightly out. That corresponded with discovery of a heavy rash on the opposite front wheel, so I must have been shunted slightly into the kerb. I had the shop mark up the invoice as “check and adjust wheel alignment after collision” as its only last year the front was done previously. I plan to include this ($60; trade wholesale price) in my costs.

At the far side of this I have GOT to bump my sum insured to around $6500. That will be the solution to further worries.

[AMB]

Originally Posted by Citroënbender

... two calls from AAMI
....gave me the option of dealing with them for the claim vs my own insurer
....I have GOT to bump my sum insured to around $6500. That will be the solution to further worries.

So its a write-off in their view? What did they offer for the write-off value?
Seeing you're speak to them, say you will accept $500 less than the write-off and you will have it fixed yourself.

[Citroënbender]

That conversation hasn’t happened yet, and won’t until the New Year. But the framework is there.

The minute they pull out a Redbook figure and count the damaged items, I’m sure they will arrive at such a conclusion. Yes, it would fetch around $750 under the hammer due to alloy wheels, towbar, GCM and overall lightness of damage - so if it was reduced by one wholesale tow and the auction fees, your $500 is close.