Awds, Fwd or Rwd – What Is the Difference?

The automobile or drivetrain layout describes where on the vehicle the engine and drive wheels are found. There are many different combinations of engine location and driven wheels -factors influencing the design choice include cost, complexity, reliability, packaging (location and size of the passenger compartment and boot), weight distribution, and the vehicle’s intended handling characteristics.
Layouts can roughly be divided into two categories: front- or rear-wheel drive. Four-wheel-drive vehicles may take on the characteristics of either, depending on how power is distributed to the wheels.
Most cars these days are front-wheel driven – cheaper layout, safest and lightest with the best interior space. Rear-wheel driven cars will provide higher sporting performance, usually found only in higher powered cars, and good for fast laps or powersliding. With modern vehicles, most people will not really be able to tell the difference.
In most traditional 4WD vehicles, the drive from the engine is sent to the rear wheels by default, through a box known as a transfer case.
All-wheel drive (AWD) doesn’t use a transfer case, but uses a system that delivers torque to where it’s needed most, still allowing for individual axle speeds. In many AWD systems, the engine drives a front-mounted gearbox, which drives the front axle through the front differential first. Some of them power the centre differential first which can then send most of the torque to the rear axle – so not all AWD vehicles are the same.
An on-demand AWD vehicle runs in two-wheel drive (normally front wheels) by default – but when the front wheels begin to spin, sensors detect the loss of traction and redirect torque to the other axle to ensure maximum grip. The reduced friction of driving two wheels most of the time will use less fuel that a full-time AWD system.
In most Australian road conditions, all you need is a two-wheel, front-wheel drive. If you want to race in a high powered vehicle, you will choose a rear-wheel drive.You would go for an AWD vehicle if you need the safety of all-wheel traction in conditions like dirt roads, snow or wet and cold mountain roads, and then a constant all-wheel system is best, with next-best being the on-demand systems. True 4WD systems are really only needed for really rough terrain, or extremely muddy conditions.

For broader vehicle comparisons, read our guide to understanding ANCAP ratings and browse the Carbiz replacement vehicle fleet.

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What To Do If Someone Hits Your Parked Car

Coming back to find your parked car damaged is never fun, but knowing how to respond correctly can save you time, money and stress.

Firstly, understand that getting upset is natural, but taking a deep breath will help you make better decisions. Examine your car thoroughly and document any visible damage, taking multiple photos from different angles, including close-ups of dents, scratches or broken parts, and capturing the surrounding area, such as road signs and markings, for context.

Next, see if you can locate the driver responsible. Sometimes, people leave a note with their contact information and insurance details. If there’s no note, look for witnesses nearby who may have seen what happened. You can also check for CCTV from nearby businesses, homes or on the street, as some areas have coverage. If you’re unsure, consider contacting the local council to find out whether cameras are in place that might have captured the accident.

If the driver didn’t leave a note, or if they did but are unresponsive or the information they provided seems incorrect, contact the police to report the accident and provide all the information you have, including photos, footage and witness statements. Be sure to request a copy of the police report, as it can be useful when dealing with insurance.

If you’re still having a hard time getting a hold of the at-fault driver and therefore cannot claim directly through their car insurer, it’s time to lodge a claim with your own insurance provider, if you have one. Provide them with as much information as possible, including the police report. From there, your insurer can determine whether your coverage, along with the information you have, will cover the damage to your car.

If your car insurer happens to find information about the at-fault driver and is able to have them lodge a claim so the costs of the damage are recoverable, you can contact Carbiz for a replacement car while your car is being repaired or until it’s been deemed a total loss. This ensures you’re not left without a car during this time, giving you peace of mind and the ability to keep your life moving.

For help organising your next steps, read our car accident insurance claim checklist and explore accident replacement vehicle options.

What It Means When Your Car Is Declared A Write-Off After An Accident

Updated 6 October 2026.

When an insurer declares a car a write-off, it has assessed the vehicle as a total loss under the policy. The damage may make repairs unsafe, or the cost of repairing the car may make a repair uneconomical. A write-off does not always mean the car is visibly destroyed.

How is a write-off decision made?

The assessment can take account of the vehicle's value, repair costs, salvage value and the policy terms. There is no single repair-cost percentage that determines every write-off across Australia. Ask the insurer for its assessment and the basis for its decision.

A total-loss insurance decision and a vehicle's written-off registration category are related but different matters. Whether a car can return to the road depends on the damage classification and the rules of the relevant state or territory.

Statutory and repairable write-offs

Statutory write-off: the vehicle meets specified damage criteria and cannot be re-registered for road use.
Repairable write-off: repairs may be technically possible, but the vehicle has been assessed as uneconomical to repair. This label does not itself authorise repairs or guarantee re-registration.

Requirements vary across Australia. In NSW, an eligible written-off light vehicle needs an Authorisation to Repair from Transport for NSW before work begins. Only limited applications are considered, and vehicles with statutory write-off damage are excluded. Approval, compliant repairs and the required inspections are separate steps.

What happens to your insurance payout?

The settlement depends on your cover and circumstances. It may be based on an agreed value, a market value or a replacement-vehicle benefit if your policy provides one. An excess, outstanding premium or finance arrangements may affect the amount you receive. Ask for a written breakdown before accepting the settlement.

Keep the assessment, photographs, policy documents and correspondence together. If you disagree with the valuation, provide relevant evidence and use the insurer's complaints process. See AAMI's explanation of total-loss claims for an insurer's example; your own policy determines your cover.

Getting around after a not-at-fault accident

If you need a replacement vehicle, tell Carbiz that your car has been declared a write-off. Eligibility, vehicle availability, the hire period and the terms of the agreement need to be confirmed for your circumstances. A write-off does not automatically entitle everyone to unlimited hire.

Contact Carbiz to discuss your accident replacement vehicle options. For a practical checklist, read what to do after receiving a write-off decision.

21 September 2017