# CL-M-07: My insurer wants to write off my car. How do I know if the payout they're offering is fair? Collected 11 October 2026 [Car insurance study](https://nzbrands.ai/research/insurance/car-insurance) ## ChatGPT Answer ID: 0a4e2df3-7828-45da-a318-e0cea898e8c7 If your insurer in New Zealand wants to write off your car, the key question is: Would the payout be enough to buy a comparable car in the current market, in the same condition yours was in before the accident? You don't have to accept the first figure without checking how it was calculated. The insurer's offer should be assessed against your policy wording, the valuation method it uses, and evidence of what similar cars are actually selling for. ## 1. Check what the insurer is offering to pay First, ask the insurer to confirm these details in writing: - The pre-accident market value: What they believe your car was worth immediately before the damage. - The valuation evidence: Which comparable cars, dealer listings or valuation services they used. - The basis of settlement: Whether your policy pays market value or an agreed value. - Any deductions: For example, your policy excess, outstanding finance or any other applicable adjustment. - The salvage value: Whether the insurer is retaining the wreck or offering you the option of keeping it for a reduced payout. Market value and agreed value are not necessarily the same. If your policy specifies an agreed value, check the wording carefully before comparing the offer with market listings. ## 2. Compare your car with similar cars for sale in NZ This is usually the most useful way to check whether the valuation is realistic. Look for at least 5 comparable vehicles on New Zealand websites such as: - [Trade Me Motors](https://www.trademe.co.nz/a/motors) - [AutoTrader NZ](https://www.autotrader.co.nz/) - [Turners](https://www.turners.co.nz/) Try to match the following: | Factor | What to compare | | --- | --- | | Make, model and year | The same model and generation | | Odometer | Similar kilometres travelled | | Specification | Same engine, trim, transmission and drivetrain | | Condition | Similar pre-accident condition | | Service history | Full service records, if yours had them | | Extras | Factory options, valuable accessories or documented modifications | Keep screenshots of the listings, including the asking price, mileage and date. These are useful evidence if you challenge the offer. Important: Asking prices aren't necessarily final sale prices, and dealer retail prices can be higher than a vehicle's assessed market value. Use several listings to build a credible range rather than relying on the most expensive example. Consumer NZ explains the distinction between market value and agreed value in its [car insurance guide](https://www.consumer.org.nz/money/insurance/car-insurance/guide). [Car insurance buying guide](https://www.consumer.org.nz/money/insurance/car-insurance/guide)[Insurance](https://www.consumerprotection.govt.nz/help-product-service/managing-money/insurance) ## 3. Check whether the insurer's valuation misses anything Ask for a copy of the assessor's report and any independent vehicle valuations. Check for mistakes such as: - The wrong model, year or specification. - Incorrect odometer readings. - An assumption that your car was in average or poor condition when it was well maintained. - Missing service records, new tyres or recent significant maintenance. - Valuable factory options or modifications being overlooked. - Comparable vehicles that are older, have higher mileage or are a lower specification. Keep receipts and service records. Evidence of a recent repair or replacement part won't necessarily increase your car's value dollar for dollar, but it may help establish its pre-accident condition. New Zealand financial dispute resolution services consider valuation guides and other supporting evidence when assessing disagreements about vehicle values. [Motor valuations and write-offs](https://www.financial-ombudsman.org.uk/consumers/complaints-can-help/insurance/motor-insurance/vehicle-valuations-write-offs)[INSURANCE & FINANCIAL SERVICES OMBUDSMAN](https://s3.ap-southeast-2.amazonaws.com/ifso-files/videos/Vehicle-Insurance.pdf) ## 4. Work out whether the net payout is fair The headline offer isn't always the amount you'll receive. For example, imagine the insurer offers $12,000, but comparable cars suggest yours was worth around $14,000–$15,000. Illustrative example only Insurer's valuation ## $12,000 Comparable market evidence ## $14,000–$15,000 Potential valuation gap # $2,000–$3,000 Any excess, salvage deduction or other adjustment would need to be considered separately, according to your policy. That gap is a reason to ask questions, not proof the insurer is wrong. You need comparable evidence and the correct policy terms to establish a fair figure. Also check whether the insurer is applying a policy limit or maximum sum insured. A sum insured is not necessarily the same as an agreed-value settlement. [Car insurance](https://www.consumerprotection.govt.nz/help-product-service/cars/paying-registering-insuring-car/car-insurance)[Market value versus agreed value](https://fscl.org.nz/case-studies/market-value-versus-agreed-value/) ## 5. What to do if the offer seems too low I would take these steps before agreeing to the settlement: 1. Request the full valuation breakdown and ask how the insurer arrived at its figure. 2. Send your comparable listings and explain why they match your vehicle. 3. Ask for a reassessment if the valuation overlooks relevant details or relies on inappropriate comparisons. 4. Consider an independent vehicle valuation if there's still a meaningful difference. Ask the insurer first whether it will consider the report and who would pay for it. 5. Use the formal complaints process if the insurer won't resolve the dispute. Ask which independent dispute resolution scheme it belongs to. In New Zealand, the [government's complaint guidance](https://www.govt.nz/browse/consumer-rights-and-credit-record/how-to-complain/complain-about-your-financial-service-provider/) explains the escalation process. [Complain about your financial services provider](https://www.govt.nz/browse/consumer-rights-and-credit-record/how-to-complain/complain-about-your-financial-services-provider/)[Making a complaint about your financial service provider](https://www.consumerprotection.govt.nz/help-product-service/managing-money/how-to-complain-about-your-financial-service-provider) You can also contact the [Insurance & Financial Services Ombudsman Scheme](https://www.ifso.nz/) or the relevant scheme for your insurer. These services provide independent help with eligible disputes. Until you've reviewed the valuation and policy terms, avoid signing a settlement or transfer document that you're unsure about. Ask the insurer to explain any deadline and whether accepting the offer would fully settle your claim. ## 6. I can help you assess the actual offer If you give me a few details, I can help you work out a reasonable NZ market-value range and identify whether the offer looks low. ## Your car and insurance offer The make, model, year, kilometres and actual offer are the most important starting points. With those details, we can compare your insurer's figure with relevant New Zealand market evidence rather than guessing. ## Gemini Answer ID: 68cd5f04-46ec-40c1-8580-ffc27d1cb727 When an insurer writes off your car, their initial payout offer is an opening assessment—**it is not set in stone.** Insurers typically aim for a market valuation based on localized data, but their figures can lean toward the conservative side. You can evaluate whether their offer is fair and challenge it effectively using the following steps: --- ### 1. Check Your Policy Type * **Agreed Value:** If your policy specifies an agreed value, the payout should match that exact amount (minus any applicable excess). Keep in mind that agreed values typically decrease annually upon policy renewal. * **Market Value (Indemnity):** If you have a market-value policy, the insurer must pay what it would cost to purchase a vehicle of the **same make, model, year, trim level, mileage, and general condition** immediately before the accident. --- ### 2. Audit Their Valuation Report Ask the insurer to provide the full valuation report and market assessment they used to calculate the offer. Check for these common discrepancies: * **Mileage Discrepancy:** Did they base their estimate on a vehicle with significantly higher kilometers than yours? * **Trim or Spec Mismatch:** Did they compare your higher-spec model (e.g., Limited, Turbo, or factory alloy wheels/leather interior) to a base-model listing? * **Condition Misjudgment:** Did they rate your car's pre-accident condition as "average" or "poor" when it was meticulously maintained and serviced? --- ### 3. Build a Counter-Offer Evidence Pack Insurers respond to concrete market evidence rather than frustration. To challenge an unfair low offer, pull together a written case: * **Trade Me Listings:** Find **3 to 5 recent or current listings** on Trade Me for the exact same vehicle model, year, and comparable mileage. Look for listings close to your region. * **Dealer Appraisals:** Obtain a written valuation or opinion from a licensed motor vehicle dealer or a trusted local panel beater. * **Receipts for Upgrades & Maintenance:** Gather invoices for recent major servicing, brand-new tyres, brake replacements, or lawful accessories/modifications that elevate your car's value above a standard tired specimen. --- ### 4. Understand Deductions * **Excess:** Your policy excess will typically be deducted from the payout unless you were entirely blameless and the at-fault driver's details are fully established and insured. * **Salvage Buyback:** If you want to keep the wrecked vehicle (e.g., to salvage parts), the insurer can deduct the scrap/salvage value from your payout. Keep in mind that a written-off car is deregistered and requires strict compliance/certification if ever put back on the road. --- ### 5. Escalate if Necessary If the insurer refuses to budge after you submit your comparable evidence: 1. **Internal Complaints Process:** Formally request that your complaint go to their internal dispute resolution team. Under the **Fair Insurance Code**, they must acknowledge and respond within strict timeframes. 2. **External Dispute Resolution:** If you reach a deadlock, you can escalate the matter to an independent scheme such as the **Insurance and Financial Services Ombudsman (IFSO)** or **Financial Services Complaints Limited (FSCL)**. This service is entirely free for consumers and binding on the insurer up to $500,000. ## AI Overviews Answer ID: 8da3804d-4db1-4a4e-9275-60d1b7021e71 To determine if your insurer's total loss payout offer is fair, you first need to check the **settlement basis** outlined in your insurance policy schedule. In New Zealand, car insurance write-off payouts are calculated using one of two methods: 1\. Identify Your Policy Type * **Agreed Value:** The insurer must pay the **fixed dollar amount** specified on your current policy schedule, regardless of what the vehicle is worth on the open market. If they offer less than this listed figure, it is generally unfair unless they are making standard deductions (see below). * **Market Value:** The insurer is only obligated to pay the **reasonable retail cost** to replace your car with a similar make, model, year, and condition right before the accident. Because insurers often use conservative industry databases, their initial market value offer can lean toward the lower end of the spectrum. 2\. Verify and Dispute a Market Value Offer If your policy is based on Market Value, you can challenge the offer if it will not buy an equivalent car in the current Kiwi market. You can verify fairness by gathering your own evidence: * **Collect local listings:** Search [Trade Me Motoring](https://www.trademe.co.nz/) and local dealership sites. Find at least 3–5 active listings or recently sold cars that closely match your vehicle's year, odometer reading, and overall pre-accident condition. * **Account for recent work:** Gather receipts for any recent major servicing, brand-new tires, or newly added accessories and modifications. * **Request the PAV report:** Ask your claims handler for a copy of their **Pre-Accident Valuation (PAV) report**. Review it to ensure the assessor did not get details wrong, such as overlooking a higher trim level or listing your mileage incorrectly. 3\. Check for Standard Deductions Keep in mind that even a perfectly fair valuation will not match your policy number exactly due to mandatory deductions. A standard total loss payout subtracts: * Your policy **excess**. What happens if my vehicle is written off or is a total loss? * Any **outstanding premiums** remaining for the rest of your 12-month policy term. * Unpaid on-road costs, such as road user charges (RUC) or registration. How to Proceed If the evidence shows their offer falls short, present your Trade Me data and receipts to your claims handler in writing and request a formal review. If you reach a total deadlock, you can request a "letter of deadlock" from your insurer and escalate the case for a free, independent review through either the [Insurance & Financial Services Ombudsman Scheme (IFSO)](https://www.ifso.nz/) or [Financial Services Complaints Ltd (FSCL)](https://fscl.org.nz/), depending on which scheme your insurer belongs to. To help narrow down your options, let me know: * Is your policy set to **Agreed Value** or **Market Value**? * Do you have an outstanding **car loan** on the vehicle? * Are you interested in looking into **buying the wreck back** from the insurer? ## Google AI Mode Answer ID: 145f772c-4b98-4cd0-b3c5-c49b34b72327 To determine if your insurer's write-off payout is fair, you need to understand how your policy values your vehicle and how that compares to the actual New Zealand market. * * Check your policy type: Review your insurance policy schedule to see if you have **agreed value** or **market value** cover. * Agreed value means they pay the fixed amount stated on your current policy schedule (minus your excess). * Market value (the most common) means they pay what your car was worth immediately before the accident. Insurers usually calculate this using the average of two independent valuations, capped at your maximum sum insured. [Harray Motors] * Do your own market research: Search New Zealand vehicle sales platforms (like TradeMe or local dealership listings) for cars that match yours as closely as possible. Look for the exact same: * Make, model, and year * Kilometres travelled * Overall condition and trim level/spec * Transmission and engine type * Request their valuation breakdown: Ask your insurer for the specific data, reports, or dealer valuations they used to arrive at their figure. Check if they factored in recent repairs, new tyres, or extras your car had. * Gather counter-evidence: If your research shows local market prices are significantly higher, compile a list of comparable vehicles currently for sale or recently sold in New Zealand to present to them. You can also pay for an independent professional pre-accident vehicle valuation yourself to back up your claim. [Harray Motors] * Know your dispute rights: If the insurer refuses to adjust a low market valuation after you provide evidence, ask them to review it formally. If you remain unsatisfied, you can take your complaint to their internal dispute process and then to a free independent dispute resolution scheme like the [Insurance & Financial Services Ombudsman (IFSO) Scheme](https://www.ifso.nz/). * If you'd like, tell me: * Whether your policy is **market value** or **agreed value** * Your car's **make, model, year, and approximate kilometres** * The **payout amount** your insurer offered I can help you figure out how it stacks up against current market trends.