AustraliaMy car was written off by insurance but I disagree with their valuation. What can I do?
You can request a second valuation from an independent assessor, negotiate with your insurer, or escalate to the Australian Financial Complaints Authority (AFCA) — which is free and binding up to $30,000.
What the Law Says
Australian insurance law doesn’t set a fixed formula for write-off valuations, but requires insurers to act fairly, reasonably, and in accordance with the Insurance Contracts Act and their own policy terms. Your rights are supported by the Australian Financial Complaints Authority (AFCA) scheme rules, which bind participating insurers.
Insurers must assess your vehicle’s market value just before the accident — not what you paid or what you hoped to get. This includes factoring in age, condition, mileage, modifications, and local market data.
Under the Insurance Contracts Act 1984 (Cth), insurers must act in good faith (s. 13) and cannot unreasonably withhold or delay payment. While the Act doesn’t prescribe valuation methods, it requires fairness in claims handling.
The AFCA Rules apply to all general insurers in Australia and give you a clear path to challenge a valuation — including access to an independent expert and binding decisions on disputes up to $30,000.
Statutory TextAn insurer must deal with a claim in a fair, reasonable and timely manner.
— AFCA Rules, r. 3.2.1 — Fair and reasonable handling
Statutory TextA member must not, in connection with a claim, act in a way that is unfair, unreasonable or unjust.
— AFCA Rules, r. 3.2.2 — Unfair conduct
What to Do
Review your policy document and insurer’s written valuation report — check if they used current market data and included GST (which must be added to replacement cost valuations).
Within 30 days of receiving the offer, request a second valuation from an independent, qualified motor vehicle valuer (you may need to pay upfront, but AFCA can order reimbursement if justified).
Submit a formal dispute to your insurer in writing — quote the AFCA Rules and ask for a review within 10 business days.
If unresolved, lodge a complaint with AFCA within 90 days of the insurer’s final response — it’s free, impartial, and decisions are binding on insurers.
Keep all records: photos, service history, receipts for modifications, and written correspondence.
Sources
Not legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: 2026-06-08.