Every question, every answer, every source

In New Zealand, if you think an insurer's vehicle repair or write-off settlement is unfair, you generally have several options. You don't have to accept the insurer's first offer without questioning it. The best approach is to identify exactly what is wrong with the decision, gather evidence of the vehicle's value or repair costs, and follow the insurer's formal complaints process.

Your options depend on whether the dispute concerns the repair quality, the decision to write off your vehicle, its pre-accident value, or the amount offered in settlement.

1. Your main dispute options

• Challenge the insurer directly. Ask for the reasons for the decision in writing, the assessor's report, repair estimates, valuation evidence and the relevant policy wording.
• Get an independent assessment. Obtain a second repair quote, a mechanic's report or an independent vehicle valuation to support your position.
• Make a formal complaint. If the claims handler won't reconsider, escalate the issue through the insurer's internal complaints process.
• Use an external dispute resolution scheme. If the complaint remains unresolved, you may be able to take it to the insurer's approved dispute resolution scheme, depending on the insurer and the type of policy.
• Consider legal action. For an unresolved dispute, you may be able to pursue a claim through the Disputes Tribunal or the courts, depending on the amount, the legal basis and the circumstances.

2. What to challenge, depending on your dispute

If the repair quote seems too low

Ask for the full repair scope and the assessor's report. Get a second written quote identifying missed damage, replacement parts, labour, paintwork and any required calibration. Ask the insurer to reassess the estimate using that evidence.

If you disagree with a write-off decision

Request the repair-versus-replacement assessment and the estimated salvage value. Ask why repairing the car is considered uneconomic or otherwise inappropriate. Check whether the assessment includes all damage and whether the policy gives the insurer the right to settle by writing off the vehicle.

If the write-off payout is too low

Challenge the vehicle's pre-accident market value or the agreed value used under your policy. Provide comparable vehicles for sale in New Zealand with similar make, model, year, mileage, condition and specifications. Include evidence of recent maintenance and valuable factory options where relevant.

If the completed repairs are poor

Photograph the defects and obtain an independent mechanic's or repair specialist's written report. Notify the insurer in writing and ask for the defects to be rectified. If the insurer arranged the repair, ask it to explain how it will ensure the work meets the required standard.

Important: Your policy wording matters. An insurer may have a contractual right to decide whether a vehicle is repaired or written off. That does not automatically mean its valuation, assessment or handling of the claim is beyond challenge. The Insurance Council of New Zealand provides consumer information on motor insurance. Car insuranceInsurance

3. Escalate the dispute in New Zealand

1. Complain to the insurer in writing.

   State what decision you dispute, why you believe it is wrong, the evidence supporting your position and the outcome you want. Ask for a written response and a copy of the insurer's internal complaints process.

2. Take it to the insurer's external dispute resolution scheme.

   New Zealand financial service providers must belong to an approved dispute resolution service. Depending on your insurer, this could be the Insurance & Financial Services Ombudsman Scheme (IFSO), Financial Services Complaints Ltd (FSCL), or another approved scheme. These services can investigate eligible complaints, generally without charge to consumers. Check the scheme that covers your insurer. InsuranceMake a complaintWhat can we help with?

   • IFSO — complaints and assistance
   • FSCL — make a complaint

3. Consider the Disputes Tribunal or a court.

   The Disputes Tribunal can hear eligible disputes, including some insurance disputes, up to NZ$60,000. Larger claims may need a different legal route. Whether the Tribunal is appropriate depends on the facts, the claim and any applicable dispute-resolution process. Get advice before filing if you have already pursued an external scheme or signed a settlement. What the Tribunal can help withGet a final decision on a complaint

   New Zealand Disputes Tribunal — what it can help with

4. Protect your position before accepting a settlement

• Ask whether accepting the payment means you are agreeing to a full and final settlement. Check any release or discharge wording carefully before signing.
• Request a breakdown of the offer, including the valuation, policy excess, any salvage deduction and any other deductions.
• Keep copies of all emails, claim documents, repair estimates, photographs and independent valuations.
• Ask the insurer to confirm any deadlines and whether it will preserve the damaged vehicle for further inspection while you dispute the decision.
• If you have a car loan, check how the proposed payout affects the outstanding finance.

5. A message you can send to your insurer

Email

Subject
: Formal dispute of motor vehicle insurance claim settlement

Dear Claims Team,

I am writing to formally dispute the proposed settlement of my motor vehicle insurance claim.

I do not believe the current decision or settlement adequately reflects the circumstances of the claim and/or the appropriate repair costs or vehicle value.

Please provide:

• The full assessor's report and supporting repair estimates or valuation report.
• The basis for the repair or write-off decision, including the relevant policy provisions.
• A detailed breakdown of the settlement amount and all deductions.
• Information about your internal complaints process and the external dispute resolution scheme available to me.

I request that you review the decision in light of the evidence and provide a written response explaining your position.

Please also confirm any relevant deadlines and whether the vehicle and all supporting assessment records will be preserved while this dispute is considered.

I reserve my position regarding acceptance of the proposed settlement until I have reviewed the supporting information.

Kind regards,

[Your name]

[Claim number]

Let’s narrow down your options

The most effective next step depends on what the insurer has actually decided.