Not at fault car insurance
How you can avoid paying for damage to your own car if you were involved in an accident where you weren't at fault.
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With car insurance, the issue of liability - who caused the accident - is really important. That's because whoever is deemed responsible for the accident usually needs to pick up the bill, which can be very expensive. If you're involved in a motor vehicle accident through no fault of your own and your car is damaged or written off, you have several options of receiving a payout from a car insurance claim.
Find out everything you need to know about not at fault car accidents and how you can make sure you get the compensation you deserve.
What happens if I'm in a car accident but I'm not at fault?
Your initial point of contact needs to be the driver who is at fault. If the other driver decides to claim on their insurance, the insurance company will most likely contact you to request information and possibly access to your car so its representatives can make an independent assessment of the damage. You have the option of assigning a lawyer to act on your behalf in these cases.
Send a letter of demand
If you believe you are not at fault, you can send a letter requesting that the other driver pays for the repairs and any losses. Attach a copy of the quote you have for repairs and keep a copy of the quote and letter. Request that they respond within a specific timeframe, for example 2 weeks. Remember to write 'without prejudice' on the top of the letter to protect yourself should it be taken to court.
Contact their insurer
If they fail to respond, you should inform the other person's insurance provider that you have both been involved in a crash with one another. Inform them of the facts of the accident. The insurer will independently make its own determination of who is at fault, taking into consideration the police report, driver and witness statements as well as any physical evidence.
I have no car insurance and someone hit me. What are my rights?
Even if you don't have insurance, you are entitled to compensation if the other driver was clearly at fault. You can send them a letter of demand with independent estimates for repairs and damage to your vehicle or property.
In this situation, the other party has a couple of options:
- Go through their insurance. If they're insured, they can choose to make a claim from their insurer to cover what they owe you.
- Not through insurance. On the other hand, they may choose not to, instead deciding to pay you with their own money.
What if the other driver refuses to pay?
If you are uninsured and they refuse to pay for whatever reason, you can issue a letter of demand for compensation. If they ignore this, you'll have to get a lawyer and take them to court.
Alternatively, if the damage or repair bill is small enough, there could be another legal recourse. If the amount you're seeking is less than $15,000 and the other driver is insured, you can lodge a complaint with the Australian Financial Complaints Authority (AFCA) to seek your compensation.
In which scenarios would I be not at fault?
When two or more vehicles are involved in a motor accident, the percentage of liability is often shared between the parties. However, there are some situations in which only one driver is likely to be considered completely at fault. These include:
- Admitting liability at the scene. In the aftermath of any accident, if Driver A says something like "I didn't see you" or even apologises to Driver B in the presence of witnesses, courts frequently consider this to be an admission of liability and Driver A will automatically be found at fault.
- If one driver is intoxicated. Fault will typically be assigned to a driver who is under the influence of alcohol or drugs, if the other driver is not intoxicated in any way.
- Getting rear-ended by another driver. If someone runs into the back of your car, they will almost always be considered at fault.
- Failing to obey a "give way" or "stop" sign. If it can be proven that the other driver failed to give way to you and you were driving legally, they will usually be found at fault unless there was any action you could have taken to prevent the accident (such as swerving or applying the brakes).
- Running a red light. If another driver collides with you as a result of failing to obey a traffic signal, they will also be found at fault in most cases. Again, if you had any option of trying to prevent the accident, but failed to do so, you may be liable for contributing to the accident due to negligence.
It's worth noting that, when it comes to car insurance, liability is considered exclusively in relation to motor vehicle accidents. There are plenty of other situations in which your car can be damaged through no fault of your own, ranging from vandalism to bushfire or hail. Damage of this kind is usually covered by comprehensive car insurance, but you may still have to pay an applicable excess.
To claim or not to claim?
When thinking about whether or not to claim for an accident in which you're not at fault, the most relevant factor is whether you can get the other party to pay for the damage. If the liability for the accident can be swiftly and unequivocally determined – and that's a big "if" – then the best course of action is usually to approach the other driver.
In some cases, for example if the other party is uninsured and cannot pay you for the damage done to your vehicle, it does make sense to claim on your own insurance. If the damage to your car is very minor and you do not have a reasonable option of getting the other driver to pay for it, it's usually not worth making a claim.
Also, if an excess applies to your policy and the cost of repairing the damage is not much more than your excess level, it might not be worth the trouble of pursuing a claim when you're unlikely to receive much reimbursement.
Does my level of insurance impact what I can claim?
Comprehensive insurance usually covers you for all types of damage to your vehicle, regardless of whether or not you're at fault.
If your insurer agrees that the accident was completely the other driver's fault, you may be entitled to claim under a Third Party Property policy, or if you have a Third Party Fire and Theft policy. Many insurers stipulate that the other driver must not have insurance that can cover the damage to your vehicle for you to make this kind of claim, and the maximum benefit you will receive is usually $5,000. You will usually be expected to provide the other driver's name, address and registration number.
What do I need in order to make a claim?
When making a claim, you will need the following information:
- Record the other driver's details. Your insurer will need their name, address and phone number, as well as the registration number of the car they were driving.
- Make notes at the scene. Write a brief summary of what took place as soon as possible after the accident. Accounts that are recorded immediately after an incident are called "contemporaneous evidence" and they hold a lot of weight in court.
- Ask witnesses for their contact details. If possible, ask any witnesses present to also jot down their description of what happened at the time of the accident.
- Take photos of the scene. Pay particular attention to not only the damage your vehicle sustained, but the final resting positions of all the cars involved, any skid marks and damage to surrounding objects such as traffic lights. Add GPS tags to your photos if you have the option.
- Submit any footage of the event. If you have a dash cam recording of the accident, this will also be very valuable for your insurer.
Will a claim affect my premium or my no-claim bonus?
In most cases, if your insurer agrees that the accident was caused exclusively by the other driver, you will not be penalised even if you make a claim.
Depending on your level of cover and the specific conditions listed on your certificate of insurance, there may be some circumstances under which your no-claim discount will be affected, even if you have purchased protection against this. Read your product disclosure statement (PDS) and certificate of insurance carefully to avoid any nasty surprises.
What happens if my car is written off but it's not my fault?
The other driver's insurer should pay you the actual cash value of your car before it was written off. There are two main categories your vehicle usually falls under when it's written off and different rules apply for each of them.
- A statutory write-off: This means that your car will never be safe to drive again, no matter how much repair work goes into it, in which case it cannot be registered again.
- A repairable write-off: This means that the cost of repairs exceeds the sum insured, and normally you or the other drivers insurer will keep the vehicle and pay you its agreed or market value.
You can make a request for your insurer to let you keep a repairable write-off, for example if it has sentimental value, and pay you the sum insured less any salvage value. Not all repairable write-offs can be legally re-registered, so this is an important point to check before applying to keep a badly damaged vehicle.
How to make a claim
If you do plan to make a claim with your own insurer, requesting a claim form is usually the safest option because you can carefully prepare your answers to all the questions. If your insurer offers the option of processing your claim over the phone, you run the risk of being put on the spot and not answering a question as well as you could have if you'd had the chance to think about it.
- Take your time. Don't start the claim process while you are still in shock or emotionally upset after the accident.
- Prepare yourself for a phone claim. If you decide to lodge your claim over the phone, think carefully about what you are going to say and keep your descriptions simple, neutral and objective. Remember that the conversation will normally be recorded by your insurer and may be referred to later in the process.
- Refer to your notes. Use the summary you wrote down at the time of the accident to help you answer the questions on the claim form or over the phone.
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