If your car has been in an accident and you’re weighing up whether to repair it or sell it, one question trips up a lot of Perth car owners: will selling the car affect your insurance claim? The honest answer is that it depends on where you are in the claims process. Get the order of events right and there’s usually no conflict at all. Get it wrong and you can delay your payout, or breach your policy terms without meaning to.
Why Timing Is the Key Factor
Most comprehensive car insurance policies in Australia give the insurer certain rights over a damaged vehicle once a claim is lodged, particularly if the car is assessed as a total loss — also called a write-off. Selling at the wrong moment can cut across those rights, whether you’re selling privately or to a yard that buys accident-damaged cars. The safest approach is always to speak to your insurer before you sell, but knowing which stage you’re at tells you what they’re likely to say.
You Haven’t Lodged a Claim Yet
If you haven’t made a claim and don’t intend to — the damage is minor, the excess isn’t worth it, or the car is old and you’d rather just move it on — you’re generally free to sell it like any other vehicle. There’s no claim in progress for a sale to interfere with. Just be upfront with the buyer about the car’s condition and history, since misrepresenting accident damage can create problems of its own.
You’re Partway Through a Claim
This is where most of the confusion happens. If you’ve already reported the accident and your insurer is assessing the vehicle, selling it before that process is finished can complicate or even void your claim. The insurer typically needs to inspect the car, confirm the extent of the damage, and decide whether it’s repairable or a total loss before you do anything with it. Contact your insurer, ask directly whether you’re allowed to sell, and get any approval in writing.
The Insurer Has Already Settled as a Total Loss
Once an insurer pays out a total loss claim, ownership of the wreck usually passes to them, not you — so it isn’t yours to sell, and they’ll arrange disposal through their own salvage network. The payout is based on the car’s market value just before the accident, and it’s worth understanding how insurance assessors reach that figure, because it isn’t always as high as owners expect. If instead your insurer offers a reduced settlement in exchange for you keeping the wreck — a “retained salvage” arrangement — that’s different, and you’re then free to sell the vehicle as its legal owner.
What WA Law Requires When You Sell a Damaged or Written-Off Car
Once you’re clear to sell — whether the car was never claimed on, or you’ve kept the wreck after a settlement — there are a couple of Western Australian requirements worth knowing.
Notification of Disposal
After you sell or dispose of any vehicle in WA, you must lodge a Notification of Disposal (form MR9) with the Department of Transport within seven days, recording the new owner’s name and address. This takes your name off the vehicle’s record and protects you from fines, tolls or other liabilities that come up after the car has changed hands. Failing to lodge it can result in a penalty.
What Happens to the Number Plates
Contrary to what a lot of people expect, standard number plates in WA stay with the vehicle. On a normal sale they pass to the new owner as part of the licence transfer, so you don’t take them off. If you want to keep your plates, you have to remove them and arrange replacement plates before the sale goes through. Personalised or optional plates left on the car will also transfer to the buyer unless you exchange them at a licensing centre first.
What Affects the Value of an Accident-Damaged Car
If you’re getting quotes from wreckers or car removal companies, a few things typically influence what’s offered:
- Extent of the damage — whether the engine, transmission and other major components are still usable
- Make and model — parts demand varies a lot between common and less common vehicles
- Completeness — a car missing panels, its engine or interior parts is worth less than one that’s intact apart from the accident damage
- Whether it has a chassis — a body shell with no chassis generally can’t be bought, as it can’t be legally identified or dismantled the same way
- Finance owing — if there’s still money owed on the car, that has to be cleared or disclosed before a sale can go ahead
As a rule, a common make like a Mitsubishi tends to hold its value better as a damaged car than a rarer model, simply because there’s a bigger market for the parts.
Selling a Written-Off or Accident-Damaged Car in Perth
Once you’ve confirmed with your insurer (if a claim is involved) that you’re free to sell, the process itself is straightforward. At Cash For Cars Perth we buy accident-damaged, flood- and fire-damaged, deregistered and written-off vehicles across the Perth metro area, in any condition. The main things we can’t take are stolen vehicles, cars still under finance and bodies without a chassis.
You don’t have to be the registered owner to sell a car, but you do need valid photo ID — worth knowing if the vehicle is still in a partner’s or family member’s name after a claim. Removal is free, and for larger or non-drivable vehicles it helps to say where the car is parked and how accessible it is when you call.
Getting the Order Right
In short: if there’s no claim, or your insurer has confirmed you’re free to sell, you can go ahead without complication. If a claim is still open, check with your insurer first and get it in writing. Once you’ve got the green light, selling a damaged car is no harder than selling any other — the paperwork is a single form, and the plates are the only thing you might need to sort out beforehand.
We’re based at 5 Hantke Place in Welshpool, a short run down the highway from Midland, Cannington and the eastern suburbs, and we cover the wider Perth metro area.
If you’re ready for a quote, or just want to talk through your specific situation, call 0420 262 651 and we’ll walk you through it.
Frequently Asked Questions
Can I sell my car while my insurance claim is still open?
Not without checking with your insurer first. While a claim is being assessed, the insurer needs to inspect the car and decide whether it’s repairable or a total loss. Selling it in the meantime can hold up or void the claim. Ask for permission and get it in writing.
Does selling the car before the assessment void my claim?
It can. If the insurer can’t inspect the vehicle, they may not be able to verify the damage or settle the claim, and some policies treat disposing of the car without consent as a breach. If the assessment is done and you have written approval, selling it is usually fine.
Who owns the car after a total loss payout?
Usually the insurer. Once they’ve paid a total loss settlement, the wreck becomes theirs and goes through their salvage process. The exception is a retained salvage arrangement, where you take a smaller payout and keep the car — then you can sell it yourself as the legal owner.
Do I have to tell a buyer the car has been in an accident?
Yes. Misrepresenting the condition or history of a car can leave you exposed later. In any case, a professional buyer assesses the damage themselves, and if the car has been written off that status is recorded against it and shows on a PPSR check.
What paperwork do I need to sell a written-off car in WA?
The main one is the Notification of Disposal (form MR9), lodged with the Department of Transport within seven days of the sale with the buyer’s name and address. Standard plates stay with the vehicle unless you remove them and get replacements before selling.
Can I sell the car if there’s still finance owing on it?
Only once the finance is dealt with. The loan is secured against the car and shows on a PPSR check, so the amount owing needs to be paid out, or the sale arranged so the financier is paid directly. Be upfront about it — a buyer will find the encumbrance anyway.