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Hi there
Our car has been damaged by the severe hailstorm in the South Canterbury and my insurer told us that it had to be written off as the cost to repair would be greater than the agreed value. Because of the difficulty in finding a replacement by the end of this month, we are considering the option of keeping the car by having a wrecked value deducted from the settlement money.

My questions are

1. What would be the process after the settlement with the insurer, will the Rego be revoked as soon as it is settled?

2. Do we have to get a rego done as soon as we settle with them? Our current Rego is until December this year.

3. Even if we get a Rego for the car, by law it is ok to sell the car or do we have to declare that the car is written off due to the hail damages, or can we sell it as just another ordinary car?

Your advice would be greatly appreciated.
Kind regards

Hi there,
Usually if the Insurance pays out, they will essentially be buying the vehicle from you and cancel the registration in the process. One of the conditions of being paid out for scrap value is that they will require surrendering of the plates immediately and the licensing cancelled in the system. Either way the vehicle will be declared in the NZTA system as written off and the vehicle will have to go through a strict repair certification process before being returned to the road.
You will have no option other than to sell as written off and cease to drive after the plates have been surrendered, or repair yourself in conjunction with a repair certifier, obtain a compliance inspection and plates.

Thank you for your reply.
My insurance company told me that we could keep the car by them deducting the wrecked value of $2000.
You mentioned that the strict repair certification process- Is that very different from the ordinary WOF requirement? What kind of costs should we be looking at to get the car back to the road??

I recommend asking if the number plates are kept alive or must you surrender them.
The re-compliance inspection (if the vehicle is de-registered) costs around $500 plus whatever the repair certifier charges and the repairs they recommend on top (before compliance can be passed).
Plus new licensing and plates (around $350)

Thank you Cade for your answer!