Auto Accident -Other Party Looking to Max Out Claim

jackspratt on 14/04/2017 - 12:43

A friend (yes, really) - party "A" recently had an accident where they rear-ended party "B". A is not insured (yes, I know), and B has full insurance. A accepts they are 100% at fault.

B's insurance company had the car assessed, and received a quote of $4000+ for repairs. The market value of the vehicle was <$4000, so they chose to pay out B. They then billed A for about $1000, which has been paid.

B has chosen to buy back their written-off vehicle from the insurance company for $300, and has received a quote for ~$6000 to repair it.

B is now chasing A for the difference between the payout figure and the new repair quote ie $2000+.

B is also looking for car hire costs (without consulting A re standard of hire vehicle), and has made noises about medical costs.

This is in Perth.

Comments welcomed.

Automotive

Comments

  • holdenmg on 14/04/2017 - 12:46
    +4

    Dream'n.

  • LucyDartnell on 14/04/2017 - 12:49
    +12

    From my understanding, after the insurance company pays out. Story is over. If they wanted the car fixed in the first place, what's the point of telling the insurance company?

  • try2bhelpful on 14/04/2017 - 12:50
    +10

    A needs to talk to a lawyer ASAP. I don't see how what B is doing is acceptable but A needs to find out ASAP and get a letter drafted to send back to B. This is just outrageous and B might be just "trying it on" but this needs professional advice. A very timely reminder that people need at least 3rd party property insurance. You have no idea what car you might hit if you are out on the road and you need to let the insurance sort this out for you. If you can't afford the insurance you can't afford to drive.

  • indium on 14/04/2017 - 12:51
    +4

    I'd just ignore any requests from them, if they choose to take things further then A has proof that he's already paid insurance company, if my understanding of this situation is correct which it probably isn't

  • whooah1979 on 14/04/2017 - 13:00
    +3

    B's insurance company had the car assessed, and received a quote of $4000+ for repairs. The market value of the vehicle was <$4000, so they chose to pay out B. They then billed A for about $1000, which has been paid.

    like mr holden said. the dispute between driver a and driver b's insurer has been settled. driver b has no further claims against driver a for this collision. driver a should reply to driver b by providing a copy of the settlement, and a cease and desist advising that driver a will challenge any claims in a local court.

    sorry wrong state.

    http://www.magistratescourt.wa.gov.au/C/civil_matters.aspx
    http://www.legalaid.wa.gov.au/InformationAboutTheLaw/WorkMon…
    https://www.artslaw.com.au/info-sheets/info-sheet/debt-recov…

  • Marcsie on 14/04/2017 - 13:11
    -3

    A friend ? lol
    Another uninsured driver ? No sympathy from me :)

    • outlander on 14/04/2017 - 14:43
      +3

      I think the industry term is 'self-insured'

  • Randxyz123 on 14/04/2017 - 13:22
    +4

    As far as the claim goes it is closed after paying the $1000.

    Is B asking for the extra $2000 OR are their insurance company demanding it?
    If B is doing it by themselves. Your "friend" can tell them to bugger off.

    B is also looking for car hire costs (without consulting A re standard of hire vehicle),

    They don't have to consult A.

    The not at fault party has every right to claim a hire car. As for the medical costs that should be covered under A's rego.

  • holdenmg on 14/04/2017 - 13:31

    Just out of interest, what Insurance company is B with?

    • jackspratt on 14/04/2017 - 14:07

      Will find out, and get back to you.

      @knick007 - B is chasing the $2K.

    • jackspratt on 14/04/2017 - 15:11

      B's insurer is AAMI.

  • supnigs super skids on 14/04/2017 - 14:19
    +1

    Best is trying to double dip.

  • whooah1979 on 14/04/2017 - 14:31

    similar case from the other side.
    https://forums.whirlpool.net.au/forum-replies.cfm?t=2622290
    Back in oct 2016 my 2006 evo ix was written off by a young girl not paying attention. She was proven to be at fault.

    Agreed value through justcar was $17,000 which was promptly paid out.

    I sent a letter of demand to NRMA (her insurer) which was ignored and so i called to chase up.

  • Gronk on 14/04/2017 - 15:41
    +3

    ITT: Another reason you shouldn't drive on public roads without insurance.

    If your 'friend' paid out the insurance company, shut down all avenues of communication with Party B - show's over.

  • Tuftsdude on 14/04/2017 - 21:18
    +1

    Screw insurance companies, a bunch of thieves. I hit a car so lightly it's pretty much a scratch. I don't have insurance. The guys insurance company quoted $2500 to fix it. I got quoted quoted $200~ by a panel beater.

    Told insurance I'll fix it myself, they said they need an OK from party B (who said it's fine) and someone from another department from their side will call me. Never happened, I'm still getting letters to pay $2500.

  • Amaris on 14/04/2017 - 21:51
    +2

    "has made noises about medical costs."

    Medical costs are covered by the licence so driver A is not personally liable

  • minniethemoocher on 15/04/2017 - 13:16
    +1

    When you friend paid the money was there anything in the paperwork from the insurance stating that that was the end of his liability?

    • jackspratt on 15/04/2017 - 14:00

      The letter from the insurer which covered the demand for $1000 from A, states, inter alia :

      "You are liable for any costs incurred as a direct result of the incident.

      This includes both insured and uninsured losses suffered by our customer. Uninsured losses are defined as a loss which may not be covered under the terms of the policy.

      Other costs which you may be liable for include, but are not limited to:
      - towing fees
      - storage fees
      - hire car costs
      - damaged personal belongings
      - legal costs and interest …….."

      My comment - as the loss of the car is covered under the policy, it would not seem to fall under "uninsured losses".

      • minniethemoocher on 15/04/2017 - 15:00

        He really should talk to a lawyer, but it sounds like reasonable car hire costs could be included. I am not a lawyer and this is not legal advice, but if he decides to pay anything further he needs a release of sorts from the other party absolving him from any further claim.

      • Amaris on 15/04/2017 - 16:00

        Did the letter say that your friend was liable for what you've mentioned on top of the $1000 he eventually paid?

  • chumlee on 15/04/2017 - 13:32

    If party B gets any monies of party A then party B needs to pass it on to his/her insurer as party B has been paid the value as per their agreement with insurer

  • Amaris on 15/04/2017 - 13:55
    +1

    As the insurance company bought the car off party A if anyone should be asking for more money it should be the insurance company.
    Imagine if it was another person who bought the car from the insurance company. Would they also have a right to claim more money from Party A? I think not. Just because it was the Party B who bought back the car that doesn't give them another go at Party A.

  • cassea on 15/04/2017 - 17:12

    I doubt that party B is entitled to hire car costs. He may have been if he was having the car repaired under insurance. Now that he's been paid out it's finished.

  • Aust on 15/04/2017 - 17:44

    So B's car was worth $1,000 which A paid? Your friend got out of jail free on that one.
    Did A get a receipt / letter / release from B's insurer stating this is in full and final settlement of damage to B? If not ask for one.
    B is then unable to claim any more costs for damages to the vehicle as by lodging the claim the insurer takes over any rights to subrogation which is basically the insurer taking control of the recovery which is in all policies.

    Hire costs are a different thing and A may be liable.
    Any injuries just forward these onto the CTP insurer of the car (the one you pay for in your registration)

    Perth has some of the cheapest insurance in Oz so no excuse for not having Third party cover.

  • jackspratt on 18/04/2017 - 13:47
    +2

    A has written to B stating they have settled with the insurance company, and therefore consider there is no further liability.

    Also stated that further legal action would be defended.

    Wait and see!

    Over and out, and thanks for the responses.

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