Can I claim my insurance excess from other party?

nobby on 09/01/2015 - 15:27
Last edited 09/01/2015 - 15:28

I was riding my bicycle on a straight road when a car turned directly in front of me into a side street. I managed to apply some brakes but still hit the side of the car pretty hard. The driver was most apologetic and offered to cover cost of damage to my bike as he was entirely at fault. I lodged an insurance claim as my contents policy covers this situation and got a quote from a bike shop (front wheel was buckled).

The insurance company is paying out to repair the bike less my excess of $250. Is there anything wrong with me now getting the driver to pay me the amount of the excess so I'm not out of pocket? He's already agreed too, but I was wondering if this is against insurance rules/regulations to settle a matter privately like this.

Financial

Comments

  • Gecko on 09/01/2015 - 15:32

    I am not a lawyer. You may want to contact a lawyer if you think you need one.

    I think if you get it in writing that he was at fault, and he has paid you the $250 excess in good faith that your insurance wont go after him (they might - if he doesn't have insurance), you should be fine.

    I say that because your insurance may go after him to recoup the bike repair costs if he doesn't have insurance. Or if his insurance turns around and suggests it's your fault, things could get weird and murky.

  • Vampyr on 09/01/2015 - 15:34
    +5

    Lol…. if it was his fault, you shouldn't pay any excess… Your insurance would get the full repair amount from him.

    • the-mal on 09/01/2015 - 15:51

      Not home and contents, that's for car insurance. He claimed on his contents insurance policy, thus the excess.

      • Vampyr on 09/01/2015 - 18:45
        -4

        Oh, I didn't realise that car insurance is a business, whilst home and contents insurance was a charity.

        • the-mal on 09/01/2015 - 23:06
          +3

          I know you're being sarcastic but I'm going to be kind and explain it to you anyway…

          Insurance excess is paid on policies where no 'other party' is found at fault. Car insurance, health insurance, building insurance, contents insurance all have excesses. Home and contents insurance isn't designed to have an 'at fault' party who is insured since the contents are insured against things like theft and/or property destruction.

          If your car gets dinged in a car park and you don't know who did it, even though it wasn't your fault, since you have no identified 'at fault' party you'll have to pay the excess.

          In OPs example the person driving the car would've had some kind of car insurance which specifically covers damage done to 3rd parties and their property. This would've covered his excess. The way OP did it he is now responsible for trying to recover his own excess outside of the insurance companies (eg small claims) and his premiums will go up because he claimed.

          This is why you should read your PDS.

        • chloden on 18/01/2015 - 13:02

          Well no actually the whole claim should have been made though his car insurance, the contents insurance should never have got involved.

        • nobby on 18/01/2015 - 13:12

          @chloden: If you mean I should have claimed through the other party's car insurance and not used my contents policy, then yes I agree. Its clear to me now from everyone's comments that this is how I should have proceeded. It just seemed simpler at the time for me to ring my company and have everything dealt with (didn't think of the negative effect this might have on my premiums).

          If you mean I should have claimed through my own car insurance, then I couldn't have as I wasn't in my vehicle at the time. My bike falls under my contents policy hence why I made the claim under that.

        • chloden on 18/01/2015 - 16:58

          @nobby:
          No the at fault driver

  • isthisreally_me on 09/01/2015 - 15:36

    Something is wrong here. Why are you paying an excess? If other party is at fault you either pay no excess or if you have to pay excess up front you get it back when other party is found to be at fault - that is how every comp insurance I have ever heard of works.

    • Gecko on 09/01/2015 - 15:41

      I'm not sure contents insurance works that way.

  • pjetson on 09/01/2015 - 15:42

    The OP is relying on his house policy, not a car policy.

  • nobby on 09/01/2015 - 15:45

    This is the first accident I've ever been in so I don't know how it usually works. I gave my insurance company the drivers first name and phone number, but for some reason they said it wasn't enough info to chase him up for recovering costs.

    I'm not bothered if they deduct my excess and the driver pays me the difference direct. But I'm just wondering if I fall foul of any insurance rules if I settle that part privately with the driver.

    • the-mal on 09/01/2015 - 15:51
      +7

      You shouldn't have used your contents insurance to cover it, you should've used his car insurance. If you're not at fault and you have the details of who is at fault you should never have to pay an excess.

      Can you withdraw your claim from your contents insurance or has it already processed?

      • [Deactivated] on 16/01/2015 - 18:08

        Dead right, crazy idea to have a mark against your insurance when it should be against the other party. However if the process has progressed too far then asking for your excess to be returned is the absolute minimum and there's nothing to stop you negotiating that privately. IMO he should offer you something additional for your inconvenience.

        Just an observation - if as you say your front wheel was buckled, what on earth are you riding for it to cost $250+ to repair?

        • nobby on 18/01/2015 - 12:58

          Yea lesson learned. Next time I get in a situation like this I'll know what to do re insurance. I did ring my insurance company to ask about getting the excess off the other party and they said that was fine for me to do. Interestingly, they also said this claim wouldn't affect my future premium. I know that was just one employee's opinion so I'll take it with a grain of salt.

          I was riding a Giant full suspension mountain bike. Not a cheap bike, and wheels can be a fairly costly component. Plus the wheels were stock oem ones, and the shop can't order just one so they quoted me for a new set.

    • Gecko on 09/01/2015 - 15:53
      +1

      Why don't you ask them? I'm sure they'd be happy to advise.

      My personal advice is to get a statement from the driver, give him your own statement saying you personally wont be pursuing the matter further and get that sweet cash money.

    • derpdeder on 09/01/2015 - 16:23

      Well now you have a claim against your insurance policy. This will affect your future premiums and if you change insurer you will need to declare that you have made a claim in the last period of time they ask for as you are deemed to have made this claim on your own volition.

  • NancyCat on 09/01/2015 - 16:21
    +4

    The driver was most apologetic and offered to cover cost of damage

    The driver is willing to pay for the damage, so why wouldn't you just get him to pay for it (from his insurance or his own pocket, doesn't matter). Wouldn't it be easier than claiming your own insurance?

    • tonyjzx on 18/01/2015 - 13:20

      because what people say in the heat of the moment isnt actually what eventuates

      if there was no damage to his car, i bet he doesnt pay shit

  • Paul Atreides on 09/01/2015 - 16:35

    OP, don't claim too much on home insurance, especially if it's a small amount

    https://www.ozbargain.com.au/node/139850

    • nobby on 09/01/2015 - 16:45

      Bugger, ok thanks for the heads up. I've had 3 claims in the last 6 months (including this one), but prior to this I've never made a single claim.

      • NancyCat on 09/01/2015 - 18:14
        +2

        Hummm… 3 claims in 6 months! Don't be surprised to see a price hike in your premium. Good luck.

  • nobby on 09/01/2015 - 16:42

    Thanks for comments. I probably should have just got the driver to pay for the lot. I was just concerned when it happened that he might reneg on his offer to pay, and I'd be left in the cold having to pay it all myself.

    And I wasn't worried about a claim on my policy as I've already had to make 2 other claims very recently.

    My claim has already been processed so its probably to late to reverse it. Perhaps I'll just call the insurance company and ask them.

    • the-mal on 09/01/2015 - 23:17

      I probably should have just got the driver to pay for the lot

      Yes, definitely. If it happened again you ask the at fault driver how they want to handle it, through their insurance or directly with you. If it's a small amount to repair they'll probably just pay without insurance to avoid paying their excess and their premiums going up.

      And I wasn't worried about a claim on my policy as I've already had to make 2 other claims very recently.

      That should make you more worried about making a claim. The more claims you make, the higher your premiums will go.

      My claim has already been processed so its probably to late to reverse it. Perhaps I'll just call the insurance company and ask them.

      Definitely try to reverse it. Explain to your insurance company that you would prefer to pursue this through the at fault parties car insurance. That way you won't have to pay your excess and your next premiums won't be as high.

      • nobby on 10/01/2015 - 01:33

        Hey thanks for all your helpful comments. I'll give my insurance company a call on Monday and see if I can reverse the claim, then ask the driver to cover my full costs.
        Other than this year I've never claimed on my insurance policies so I didn't give much thought to how my future premiums would be affected. Nor have I ever been in a accident, so I just assumed I lodged a claim automatically through my policy and the insurer dealt with everything from there. I see the error in my thinking now.

  • chumlee on 09/01/2015 - 19:34
    +2

    You cannot double dip. You made a claim through your insurance so any money you collect from the other party needs to be given to your insurance company. You have to bear the cost of the excess. If you do get reimbursed for your excess by the other party just don't tell your insurance company.

    • the-mal on 09/01/2015 - 23:13
      +1

      That's not true, he's not double dipping. OP claimed on his Contents Insurance - these policies have no 'at fault' party that the insurance company will pursue, you just have to pay the excess. That's how the product is designed.

      OP is now out his excess because of the person who hit OP. He can demand the reimbursement of this money from the person who hit him. This would stand up in small claims. The guys car insurance may not pay for this excess because they probably only cover repairs, not reimbursement, but that doesn't mean the guy isn't still responsible.

      It's none of the insurance companies business who pays your excess. Anyone can pay it, as long as it gets paid.

      • chumlee on 10/01/2015 - 06:46

        The OP‘s question has been asked a few times on ABC radio 774 legal talk back with David Whiting and what I wrote is what his legal opinion is. All of his legal Q&A‘s are posted on his website if you want to confirm.

        • the-mal on 10/01/2015 - 12:13

          Whiting wouldn't be referring to this case, that would be if two parties with auto repair insurance both claimed. This would be against their PDS. Eg you got your car repaired by your comprehensive insurance and also tried to claim costs for the repair from the 'at fault' party. That is illegal as it's against the terms of the PDS.

          Claiming your excess back from an unclaimed at fault party is in no way double dipping nor is it illegal (which is what OP is attempting to do).

          I have worked for several insurance companies. I'm not a lawyer but I know insurance very well.

        • chumlee on 10/01/2015 - 15:20

          Yes you are probably correct there.

  • DealSeeker7 on 13/01/2015 - 18:29

    It sounds like the other driver is entirely at fault. You should contact their insurance company directly and request replacement of your bike and you should pay $0. This isn't a Home and Contents claim. It's a Motor Vehicle claim and you're not at fault.

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