Ruqayyah Snyder
If you hit another car in Australia, you may have to pay an insurance excess, even if you are not at fault. This will depend on the circumstances of the accident, your insurance policy, and the actions of the other driver. For example, if the other driver cannot be located or refuses to pay, your insurer may decide it is not worth pursuing them, and you may have to pay the excess. If it is later determined that you were not at fault, you may be able to get your excess refunded. It is important to review your insurance policy and understand the conditions under which you may be required to pay an excess.
| Characteristics | Values |
|---|---|
| If you are at fault | You may need to pay the excess before your insurer finalises the repair or replacement costs. |
| If you are not at fault | You may not need to pay the excess if you can provide the details of the responsible party. |
| If fault can't be determined | You will likely need to pay the excess. |
| If you are claiming for multiple incidents | You will need to pay an excess per incident. |
| If you are claiming under two different policies | You will need to pay an excess for each policy. |
| If you are claiming for certain types of incidents | You may need to pay an excess for incidents like theft, weather damage, hitting an animal, or vandalism. |
| If you are a named driver on the policy | You may need to pay an additional excess if you are not listed on the policy. |
| If you are a comprehensive policyholder | You may be able to reduce your basic excess for a higher premium or increase it for a lower premium. |
| If an unlisted driver was at fault | You may need to pay an additional excess. |
| If you are driving a hire car | You may need to pay a higher excess, and the driver of the other car can claim against you. |
| If the at-fault driver is uninsured or cannot pay | You may need to pay the excess and then try to recover the costs from the other driver. |
| If you cannot pay the excess as a lump sum | You may be able to arrange a repayment plan to pay it off over time. |
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What You'll Learn
Fault can't be determined
In Australia, determining fault in car accidents can be challenging, and there are instances where fault cannot be established. In such cases, various factors are considered, and fault may be shared between all drivers involved, or no party may be deemed responsible.
When fault is unclear, different laws and regulations, including state-specific rules, come into play to determine liability. For example, in New South Wales, the State Insurance Regulatory Authority (SIRA) governs car accident compensation, and individuals may be entitled to statutory benefits regardless of fault. However, common law entitlements related to intangible losses like psychological harm are reduced based on the degree of contributory negligence.
To establish fault, insurance companies review the compensation claim form, police reports, surveillance footage, and other material. They also consider vehicle damage levels and assess the impact of the accident on damaged vehicle components. Witness accounts, photographs, and videos can also assist in fault determination.
If there is a dispute about who is at fault, you may have to pay the excess for your car to be repaired. If you are later found not to be at fault, your excess may be refunded. However, if the at-fault driver is uninsured or cannot be located, your insurer may decide not to pursue them, and you may be responsible for paying the excess.
To reduce the chances of paying the excess, it is essential to document as much evidence as possible to support your claim and prove you are not at fault. Additionally, comprehensive car insurance typically covers damage to your vehicle, regardless of who is at fault.
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Paying multiple excesses
- Multiple incidents: An excess is paid per incident. For example, if you have a minor accident and then, while driving to the repair shop, you hit another car, you will need to lodge a separate claim for each incident and pay two excesses.
- Multiple policies: If you accidentally hit the accelerator and drive into your house, you will need to make a claim and pay an excess for damage to your car under your car insurance policy, and then make a separate claim and pay another excess for the damage to your house under your home insurance policy.
- Basic and additional excesses: Depending on the circumstances, you may have to pay a basic excess plus any additional excesses that apply. For example, if an unlisted or inexperienced driver under the age of 25 causes an accident while driving your car, you will have to pay a basic excess plus an additional excess due to the driver's age or their status as an unlisted driver.
It is important to note that the specific conditions under which you will be required to pay an excess are outlined in your insurance Product Disclosure Document (PDS) and policy schedule. Some policies may not require an excess for certain types of claims (e.g., windscreen damage) or may waive the excess if you are not at fault and can provide the details of the at-fault party. If you are unable to pay your excess, you can request a repayment arrangement to pay it off over time or ask your insurer about reducing or waiving the excess amount, especially if you are experiencing financial hardship.
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No-fault accidents
In Australia, if you are involved in a car accident, you may need to pay an excess on your insurance premium. Whether you are at fault or not, your insurance company will decide if you need to pay your excess. However, if you are not at fault, you may be able to get your excess refunded. If the at-fault driver is uninsured or flees the scene without leaving their details, you may still be required to pay the excess.
If you are unable to pay your excess, you can ask for a repayment arrangement to pay it off over time. If you are claiming for multiple incidents, such as cosmetic damage to the front of your car and then, while driving to the repairer, you hit the back of another car, you will need to lodge a separate claim for each incident and pay two excesses.
In some cases, your accident may not be the fault of a driver, but of environmental conditions such as a fallen tree or damaged roads. In these cases, you may be required to prove negligence against another party when making a claim. This could include a homeowner, your state insurer, a council, or a parks authority.
Victoria, Tasmania, and the Northern Territory primarily operate 'no-fault' compensation schemes, allowing individuals injured in car accidents to claim for medical treatment and rehabilitation costs, regardless of who was at fault. New South Wales, South Australia, Queensland, and the Australian Capital Territory (ACT) operate hybrid systems that combine elements of both no-fault and fault-based schemes. In these states, CTP insurance is mandatory and covers drivers for compensation costs related to injuries caused by car accidents, regardless of who was at fault, to a certain extent.
If you claim that the accident was a no-fault motor vehicle accident, there is a presumption that that is true in the absence of evidence to the contrary. There is no entitlement, however, to claim damages for the death or injury of the driver of a motor vehicle if the accident was caused by an act or omission of that driver.
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Disputing the excess
If you are involved in a car accident in Australia, you may need to pay an excess on your insurance premium. This is the case even if you are not at fault. The excess is an amount that you must pay towards each claim you make. For example, if your car is damaged and needs $3,000 of repairs, and your policy has a $500 excess, you will need to pay the $500 excess and your car insurance will cover the remaining $2,500.
Whether or not you need to pay an excess, and how much it will be, depends on the specifics of your insurance policy. Some policies do not require an excess for certain types of claims, such as windscreen damage. Some policies require an excess for all claims, regardless of fault. Your insurance Product Disclosure Document (PDS) will outline when you don't have to pay an excess, or when your excess is refunded. Check your PDS and your policy schedule to find out more about your excess.
If you are unable to pay your excess, you can ask for a repayment arrangement to pay it off over time. If you are experiencing financial hardship, you can ask your insurer to reduce the amount owing or waive the excess. They may ask for relevant evidence of your hardship, such as medical evidence or Centrelink statements.
If you believe you are not at fault for the accident, you may still have to pay the excess if there is a dispute about who is at fault. If it is determined that you are not at fault at a later date, you may be able to get your excess refunded. To increase the chances of a refund, document as much evidence as possible so you can prove you are not at fault. If the at-fault driver is uninsured or cannot pay for the damages, your insurer may decide it is not worth chasing them, and you may have to pay the excess.
If you are disputing the excess, you can pay it and then dispute it later, or you can refuse to pay it. If you refuse to pay, your insurer will not repair your property or the other driver's property. They may deduct the excess from any payout to you or the other driver, who may then pursue you directly for that amount. If you have not paid your excess and the other driver starts legal action, your insurer may not cover the additional legal and court costs, or the claim itself.
If you are unable to reach an agreement with your insurer, you can make a complaint to the Australian Financial Complaints Authority (AFCA). You can also go to court or a special car accident tribunal (available in some states). Always get legal advice before taking legal action.
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Getting legal advice
If you've been in a car accident in Australia, it's important to understand your rights and responsibilities, especially when it comes to paying insurance excess and seeking legal advice. Here are some detailed instructions on getting legal advice after a car accident:
Understanding Excess and Insurance Claims
Before seeking legal advice, it's crucial to understand the concept of excess and insurance claims. In Australia, most car insurance policies require you to pay an excess, which is the amount you contribute towards the cost of a claim. Whether you need to pay an excess depends on the circumstances of the accident and the terms of your insurance policy. Even if you are not at fault, your insurance company may still require you to pay the excess initially and seek a refund later. Carefully review your Product Disclosure Document (PDS) and policy schedule to understand the specific conditions related to excess payments and refunds.
When to Seek Legal Advice
- Police Involvement: If the police are involved after a car accident, it is advisable to seek legal advice before making any statements to them. This is particularly important if you are considered at fault or charged with a serious traffic offence.
- Unclear Fault: If it is unclear which driver is at fault, especially in accidents involving multiple vehicles, seeking legal advice can help determine liability.
- Employer Involvement: If the other driver was driving for work, you may be able to claim against their employer. However, before initiating a claim, it is recommended to seek legal advice to understand your options and the potential consequences.
- Independent Contractor: If you are an independent contractor driving your own car and are at fault in an accident, you are responsible for any damage caused. In such cases, legal advice can help clarify your rights and responsibilities.
- Disputes with Insurer: If you believe your insurer has treated you unfairly, rejected a reasonable payment plan, or you are unable to pay the excess, legal advice can guide you on your rights and options for recourse.
- Court Cases: If your case goes to court, legal representation is crucial. This includes situations where you are sued by the other driver or their insurance company, or when you decide to sue the other driver for damages.
Steps to Take After a Car Accident
- Stop at the scene of the accident and provide assistance to any injured persons.
- Exchange details with the other driver(s), including name, address, phone number, vehicle registration number, and insurance information.
- If the other driver refuses to exchange details, note their vehicle's registration plates and report the accident to the police within 24 hours.
- Document as much evidence as possible, including photos, witness statements, time, date, location, speed, and weather conditions. This evidence can be crucial when making insurance claims or seeking legal advice.
- Notify your insurer of the accident, as required by your duty of disclosure.
- Contact legal aid services or a lawyer specializing in car accident cases to guide you through the specific legal processes and protect your rights.
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Frequently asked questions
If you're not at fault, you may not need to pay an excess, but it's not always that simple. If there is a dispute about who is at fault, you may have to pay the excess initially and get it refunded later if it's determined you're not at fault. Additionally, if the at-fault driver is uninsured or cannot be identified, you may be required to pay the excess. It's important to check your insurance policy and Product Disclosure Document (PDS) for specific details regarding excess payments.
To avoid paying an excess when you're not at fault, you typically need to provide the at-fault driver's full name and two of the following: phone number, address, driver's licence number, or vehicle registration number. It's also essential to document as much evidence as possible to support your claim and prove you're not at fault.
If you're unable to pay the excess due to financial hardship, you can request a repayment arrangement from your insurer to pay it off over time. They may ask for relevant evidence of your hardship, such as medical evidence or Centrelink statements. It's recommended to get legal advice if you encounter issues with your insurer regarding payment arrangements.
