"What happens if..." Car Crash Insurance Summary

activ8newbs on 15/09/2020 - 22:29

Hello Ozb,

I was thinking…with all the MS Paint Diagrams going around, and all the different scenarios, can I kindly ask you to share what would happen in each of the following common scenario's?

For the examples below, let's assume I'm John and the 3rd Party is Emma. Let's also assume John has Comprehensive Insurance as well as Third Party Property Damage and CTP.

  1. John is driving down the road. While changing lanes, he hits Emma. It's his fault. He admits mistake, calls his insurance company and pays an Excess. The excess is paid (Say, $650), and within that $650, Johns insurance company fixes both cars. Next year his premium is likely to go up even if he changes insurer (As he'd have to tick the box that says I've made a claim before). Is this all correct?

  2. John is driving down the road. While changing lanes, Emma hits him, but blames John. Although no party has a dashcam, the fault is Emma's. John's car is barely scratched but Emma is angry because her bumper falls of. Emma calls her insurance company and says that John hit her. (John and Emma exchanged details at the scene). What happens next? If no party has dashcam evidence, is John at any risk of having to pay for Emma's damages even though they weren't his fault?

I swear I had a 3rd Scenario but I can't remember what it was. If I'm missing a commonly occuring accident scenario and have missed it, please share.

@Pegaxs and @Spackbace and @All the other car guys out there.

Automotive

Comments

  • godofpizza on 15/09/2020 - 22:33

    What would happen? a movie called "When Emma meet John, a love story in the fast lane."

    1.Yes
    2.Yes, without insurance to protect you. People like to point the finger at rather than accept blame.

  • [Deactivated] on 15/09/2020 - 22:33
    1. Yes
    2. Yes because people lie and/or people are at fault and don't know it.

    (If your third scenario is you made a claim but you are not at fault then yes, your premium will still go up, just not as much as in scenario 1.)

  • RockyRaccoon on 15/09/2020 - 22:36
    +5

    Let's also assume John has Comprehensive Insurance as well as Third Party Property Damage and CTP.

    Your assumption is firstly wrong…

    It’s CTP + 3PP
    Or
    CTP + Comprehensive

    Comprehensive includes all the 3PP protection

  • Arthur Dunger on 16/09/2020 - 08:50
    +1

    John and Emma sound like really bad drivers. Maybe they should sell their cars and catch public transport instead.

  • cainen on 16/09/2020 - 10:01
    +3

    If you're involved in a claim and it's determined you're not at fault they still put up your premium. It's absolute BS.

    • crazyboy on 16/09/2020 - 11:58

      Really hard to understand why companies do like this. If someone is a good driver and another person hits their car, they better get prepared to pay more premium from next year? How much more it usually is?

  • bobbified on 16/09/2020 - 10:10
    +1

    The third commonly occurring incident is the same as number two, except Emma is very apologetic at the scene and admits to John that it's her fault. John drops his guard and doesn't take pictures or get witness details/statements. However, when Emma gets home, she tells her insurance that John hit her and it's his fault. The insurance company sends John a letter of demand for damages and it goes from there. Without pictures/videos and or witness details/statements, John can very easily be on the hook for the incident.

  • Ryanek on 16/09/2020 - 10:14

    Both scenarios are one and the same.

    • Arthur Dunger on 16/09/2020 - 12:33

      3rd Scenario - John & Emma hit each other, fall in love & live happily ever after with smashed up cars.

  • SmiTTy on 16/09/2020 - 12:31

    Scenario 2 - John and Emma submits a claim. Insurance providers work it out between them to determine whose at fault with the evidence and statements provided (regardless of what is said at the accident) . The at fault driver pays an excess, both their insurance premiums go up next year

  • Love a bargain on 18/09/2020 - 12:20

    Isn't the one who's changing lane always at fault though? So isn't John at fault in both scenarios? (Since, in scenario 2, John changed into Emma's lane without enough clearance/ giving way to her, which caused her to hit him from behind.)

    • cwongtech on 18/09/2020 - 12:45

      While changing lanes, Emma hits him, but blames John.

      Looks like Emma is changing lanes in scenario two, so should be Emma's fault

      • Love a bargain on 18/09/2020 - 23:17

        You could be right. I somehow read it to mean "Emma hits him when John was changing lane" the first time I read it - could be due to pre-conception from reading the 2 scenarios one after the other.

  • cwongtech on 18/09/2020 - 12:50

    Also had another scenario:
    Trojan horse witness, which is what happened to my family member

    1) No dashcam footage
    2) Parked car gets hit by hit-and-run driver
    3) "Witness" volunteer comes forward, even presents a numberplate, prepared to make a statement at a police station
    4) Numberplate provided is incorrect
    5) Parked car owner has to cough up excess even though not at fault
    6) Insurance premium comes up

    Unsure but perhaps volunteer witness was the culprit or a friend of the culprit.

    Moral of the story, trust no one, gather as much evidence yourself (keep emotions out of it) and make sure all information you have is written down for future reference.

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