Write it off — or fix it? Those are the choices at the centre of a battle between one vehicle owner and his insurer, Allstate.
Mehmed Hujic lives in the small hamlet of Conrich, Alta. On Nov. 16, 2023, he was driving home when a deer ran out in front of his vehicle. The right, front end of his vehicle suffered the brunt of the collision.
“Light, bumper, grill and washer fluid tank damage,” he told Global News.
But Hujic pointed out the vehicle was still drivable and, he expected, “fixable.” He was shocked when the insurance adjuster told him it wasn’t.
“They want to write off my vehicle, I don’t want to do that,” he said. “It’s still drivable. Transmission, engine good. It’s just damage from deer.”
Hujic said he was offered an insurance payout of under $5,000, which he said substantially undervalues his vehicle.
“GMC Envoy, like this one with same year, and almost same kilometres is $8,000 to $10,000. I pay insurance company every months (sic). No late for payment.”
Global News reached out to Allstate Insurance Company of Canada to get its response. The insurer said its top priority is safety, adding that in this particular case, “…after a thorough inspection it was determined the integrity of the frame was compromised.”
Allstate stated that was the body shop’s assessment and the company’s as well.
It also added Allstate Canada is, “currently reviewing next steps with the customer, which include the option to pursue repairs and access to coverage for the costs within the terms of their insurance policy.”
But Hujic, along with his daughter-in-law, told Global News that they haven’t been in contact. Far from it, they said.
“We report to insurance company from Nov. 17,” Hujic said. “Insurance company, they play games with me.”
“No response,” daughter-in-law Asmira concurred. “They never call. I’ve left so many messages. It’s so frustrating.”
“You (Allstate) should be taking care of your customers, helping your customers,” she added. “Fix the problem that they have, right?”
When is a vehicle deemed not fixable?
The Insurance Bureau of Canada (IBC) told Global News write-offs are a valid option, depending on the circumstances of the claim.
The two main reasons: cost and safety.
“If the company has deemed it as a write-off, it could be because it doesn’t make financial sense to repair it from the company perspective,” said Anne Marie Thomas, IBC’s director of consumer and industry relations.
“Typically, in cases where the frame is bent, or safety features are compromised, an insurance company may say, ‘No we’re going to write this vehicle off because it shouldn’t be on the road.”
Thomas added the principle of insurance is to put the policy holder back into the position that they were in, prior to the loss. That means the policy holder cannot benefit from any claim, she said.
“If this vehicle is worth $20,000 but it’s going to cost $25,000 to repair, then the policy holder could be perceived as profiting,” she said.
“An insured cannot profit from a loss. That’s the bottom line.”
IBC also said drivers can try to negotiate with insurers to get a better payout. She said an arrangement “can” happen, if they (the driver) can prove to the insurance company that the offer is too low. Some factors that may come into play include the condition of the vehicle, its mileage, and its resale value.
Thomas added policy holders can reject any payout and choose to fix the vehicle themselves, but have to beware it may be very costly and very tough to re-insure.
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