Do I have to accept a write-off payout?

Your right to negotiate

You are not obligated to immediately accept the first payout offer from your insurer. If you believe the offered amount doesn't accurately reflect your vehicle's market value, you have the right to negotiate.

How payout amounts are calculated

Insurers typically base their payout offers on:

• Trade guides (such as Mead & McGrouther or TransUnion)
• Current market conditions
• Your vehicle's age, mileage, and condition
• Service history and modifications

The figure should reflect what it would cost to replace your vehicle with one of similar age, condition, and specification.

Steps to dispute a payout offer

If you disagree with the offered amount:

1. Gather evidence: Collect advertisements for similar vehicles currently on the market
2. Document condition: Provide evidence of your vehicle's condition before the accident (service records, photos)
3. Request breakdown: Ask the insurer to explain how they calculated the value
4. Submit counter-offer: Present your evidence and proposed value in writing
5. Escalate if needed: Contact the Ombudsman for Short-Term Insurance if you can't reach agreement

Buying back the salvage

In some cases, you may have the option to retain the vehicle by buying back the salvage. This means:

• The insurer deducts the salvage value from your payout
• You keep the damaged vehicle
• You're responsible for repairs and re-registration

This option may be worthwhile if repair costs are manageable and the vehicle has sentimental or practical value to you.

Policy excess

Remember that your policy excess will be deducted from the payout amount. If another party was at fault, your insurer may recover this from the other party's insurer, but this process can take time.