18 January 2018

Why do cars get recalled?

The number of recalls issued by manufacturers of motor vehicles is rising, probably in line with the complexity of modern engines and electrical systems. Not all recalls are for major fixes – vehicles are recalled for smaller-scale fixes all the time. Smaller issues are sometimes addressed when you take your vehicle in for a service.  At the other end of the scale, it has happened that the manufacturer has issued a “do not drive” instruction – such as was issued with Porsche for its 911 GT3 model that started catching fire.

Modern cars are built with mechanical and electrical systems – any part of which could fail. The safety of consumer goods (including their components) such as motor vehicles and motor vehicle parts is regulated by the Australian Consumer Law (ACL). Among other things, such as statutory warranties as to acceptable quality, the ACL imposes obligations on suppliers and manufacturers of consumer goods concerning product recalls.

Under the ACL, goods (such as motor vehicles) are deemed to have a safety defect ‘if their safety is not such as persons generally are entitled to expect’. This means that whether a motor vehicle is considered to have a safety defect will be considered on a case-by-case basis.

If a safety or non-compliance issue is found in a vehicle, manufacturers are responsible to fix these, and that means that they will recall the vehicle. Vehicle recalls can be voluntary, where the manufacture decides independently to recall a vehicle, or compulsory – where the manufacturer is compelled in terms of the law to conduct a recall.

The website recalls.gov.au lists all recalls for major car brands. In 2015 there were 158 car recalls, 199 in 2016, and 183 in 2017. We are still in the first month of 2018, and already 6 recalls for cars are listed.

In addition to the complex systems and potential for failure in modern cars, manufacturers are concerned about reputational damage should they be aware of a problem without recalling the models concerned, and later are exposed for trying to hide the situation. Car companies are now acting to address faults much earlier than they may have in the past.

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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.

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

If your car has been involved in an accident, you may hear the term “write-off” from your insurance company or repairer. But what does it actually mean when your car is declared a write-off? Understanding this process can help you make informed decisions about your car, repairs and costs.

A car is considered a write-off when the cost to repair it after an accident is too high compared to its market value. Insurance companies often calculate the repair cost and compare it to the car’s value prior to the accident. If the repair cost is more than a certain percentage of the car’s value, typically around 60–75%, the car may be classified as a write-off. This doesn’t always mean your car is completely destroyed; sometimes the car could technically be repaired, but the cost would outweigh the benefits.

There are different types of write-offs. A total loss write-off is when the car is so badly damaged that repairing it is not financially viable. A repairable write-off is when the car can be fixed, but it requires significant repairs. In either case, the insurance company will usually pay out the car’s value at the time of the accident, minus any applicable excess or deductions.

The cost implications of a write-off can vary. If your car is declared a write-off, you may need to consider the cost of replacing it with another car. Some car owners opt to keep a repairable write-off, but this comes with the added repair costs, which can be substantial depending on the extent of the damage. Repair costs can quickly add up, especially if the accident involved structural damage or expensive parts.

It’s also important to understand that a car that has been written off may have a lower resale value even after repairs. Future buyers often view written-off cars as higher risk, which can affect the cost of insurance and overall value.

If your car is declared a write-off after an accident, speak with your insurance provider to understand your options. You may receive a payout for the car’s value, and in some cases, you can negotiate repair costs or even retain the car if it is repairable. Knowing what a write-off means, how it affects repair costs, and how it impacts the car’s value can save you time, money and stress after an accident.

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