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.

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

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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.

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