Can I Ask The Other Party to Pay for Rear Ending My Car and Not Claim on My Own Insurance

kanad on 15/05/2023 - 20:20

A person rear ended my car on Saturday with a ute with a bullbar. The traffic was at a standstill and this young guy couldn't stop in time. The impact was very gentle, so far seems only some paint chipped from bumper. He claims to be fiddling with radio and not paying attention, was apologetic. I have taken pictures of the collision, his rego and he send me his driving license certified copy scan (didn't have the actual license) via mms. It was a company registered car.

The issue is I am comprehensively insured with Budget Direct but my base excess is $1000. Also I had a claim last year and due to my stupidity didn't realise that BD doesn't have NCD rating 1 for life. This increased my premium. Is there any way I can claim on his company's insurance. Should I go to a crash repairer, get a quote and send him a letter of demand? He either pays me by bank transfer or contacts his own insurer to pay me. Is there a good template for letter of demand?

Automotive Car Insurance Insurance

Comments

  • HamBoi69 on 15/05/2023 - 20:34

    But where's the MS Paint diagram?

  • battler on 15/05/2023 - 20:39
    +11

    https://www.budgetdirect.com.au/car-insurance/car-insurance-…

    your no claim discount (NCD) is reduced by two years on renewal of your policy, unless: the accident was not your fault and the at fault party can be identified

    /thread

    • kanad on 16/05/2023 - 15:33

      Due to my stupid mistake I moved out of BD to Qantas for a year and then moved back. Even though the underwriter is same I lost the NCD as BD has stopped giving this for new policies.

    • HeWhoKnows on 16/05/2023 - 18:30
      +2

      To answer OPs question - YES! DEFINITELY
      dont go through your insurance as its classified as a CLAIM on your insurance record regardless of who is at fault.
      The driver seems to be very co-operative
      Go get 3 quotes and present to him
      He can select the lowest quote.
      Pls be fair and reasonable with this young driver as its a very minor accident.
      Consider the resolution as bonus cash in hand and go to the local auto spare parts store and grab some touch up paint

  • Muzeeb on 15/05/2023 - 20:40
    +1

    Should I go to a crash repairer, get a quote and send him a letter of demand?

    Yes. Then they can decide whether to settle with their own money or go through their insurance.

    Alternatively, claim through your insurance. You should have no excess or get the excess reimbursed eventually. I'm not sure how BD handle this.

    • HeWhoKnows on 16/05/2023 - 18:33
      +1

      The process is to get 3 quotes, not 1.
      There is no letter of demand required.
      The driver seems very co-operative and apologetic
      Just present the driver with the 3 quotes and accept payment for the lowest quote as settlement.

      Dont go through insurance for such a small claim as it will tarnish your claims record regardless of the fact you are not at fault - unless of course the driver becomes rather unco-operative.

  • S2 on 15/05/2023 - 20:47
    -3

    Should I go to a crash repairer, get a quote and send him a letter of demand?

    Yes to getting multiple repair quotes. Then get the details of his insurance policy, call them up and ask them to reimburse you a reasonable amount for the car repairs. They will attempt to negotiate you down. Provide the multiple repair quotes as your justification. I don't think you have to be too formal, start off with emails and phone calls to achieve what you're after.

    • Muzeeb on 15/05/2023 - 20:48
      +5

      I don't think that's the way it works.

      • S2 on 15/05/2023 - 20:52

        I don't think

        Well, now it's a bit of a he said, she said situation. Insurance companies are not bound by a requirement to only speak with other insurance companies.

        Also, your earlier suggestion of dealing directly with the individual is perhaps the best choice for both parties and should be followed first.

        • Muzeeb on 15/05/2023 - 21:13
          +3

          I'm guessing that unless the at fault party puts in a claim that they will not speak to you about their policy let alone obtain a reimbursement from insurance company.

          • S2 on 16/05/2023 - 11:46
            +1

            @Muzeeb: Yes, you are right. My comments were written with that assumption in mind. Thanks for providing the clarity.

      • HeWhoKnows on 16/05/2023 - 18:34
        -1

        Agreed
        negotiate directly with the driver on this one

  • Euphemistic on 15/05/2023 - 20:57
    +4

    You can work with them to pay out your damages. If that fails, use your own insurance.

    I’m still going through this. Got backed into in a shopping centre. Other party said he’d prefer to go outside insurance. I agreed, got a $1400 quote to replace the bumper and forwarded it. He thought it was too much. Got his own quote from a couple of photos I sent for about $500 and booked my car in with his repairer. Was reluctant to provide details as to the repairer. Eventually forwarded details and I contacted the touch up and paintless repairer with further photos and he agreed it probably wouldn’t be a perfect job. Guy got stroppy and now I’ve got my own insurance claim in. I was happy to work with him but he was adamant I use his repairer and I wasn’t comfortable with his lack of communication.

    • HeWhoKnows on 16/05/2023 - 18:37
      -1

      Great story and thats how its done
      he should have been happy for you to get 3 quotes
      he has the right to select the lowest quote
      You have right to use the repairer of your choice and pay the difference, if thats the case.
      What a fool this guy was.
      now the insurance company will make minced meat out of him

      NB: A repairer cannot calculate a proper quote without doing a thorough inspection.
      And this story proves the point.

  • Boioioioi on 15/05/2023 - 21:10
    +19

    Mate if you are not at fault, and the other party has provided their details, you do not pay the excess and you do not lose no claim discount. Both of those only apply if you are at fault.

    Make the claim if you've got their details

    • zoob on 15/05/2023 - 21:56
      +5

      This is the best advice here. Why pay for comprehensive insurance if you're not going to use it?

      • kanad on 16/05/2023 - 15:30

        Thanks. I have confirmed this with Budget Direct. I was fearful the excess applies for all claims, much relieved now.

    • HeWhoKnows on 16/05/2023 - 18:41
      -1

      you miss one very important point
      It still affects your insurance record

      One question that is always asked…

      "Have you made any claims in the last 5 years regardless of who was at fault" (maybe 3 years)

      BANG!

      • Boioioioi on 16/05/2023 - 20:04
        +1

        Not all insurers ask that, go with one who doesnt

        • HeWhoKnows on 22/05/2023 - 09:24
          -1

          Thats right
          Instead some ask the question:

          "Have you made any claims in the last 3 years regardless of who was at fault"

          This is a standard question to minimise thier risks
          If you made a claim you were involved in an accident - yes?
          If you find one that doesnt ask this question probably the premiums will be much higher.
          And that is not the aim of the game here at OB

          So Its better not to put a claim in if you can avoid it as it does go on your record regardless.

          • Boioioioi on 22/05/2023 - 15:39
            +1

            @HeWhoKnows: Is it a bargain if you're paying for a service you're afraid to use? Insurance is definitely something where the cheapest option isn't the best. Get one that takes care of you when you need it. Isn't that the whole point?

            You're just throwing your money down the drain if you go with an insurer you're never able to make use of

  • kerfuffle on 15/05/2023 - 21:10
    +3

    You had a bad experience with Budget Direct last year but still remained insured with them?

  • pegaxs on 15/05/2023 - 21:12
    +1

    Get quote
    Send letter of demand
    Await payment
    No payment/stalling payment? Bypass waiting and head directly to your insurer.

    If you are not at fault and have all the drivers details and they want to mess you around, just gilet your insurance deal with it, this is the exact reason why you pay them.

  • dtc on 15/05/2023 - 21:21
    +5

    Why do people continue to think they suffer by claiming on their own policy when another person is at fault? Just read your policy and see what it says. It almost certainly will say you won’t be charged more

    The only downside is having to deal with the excess

    • plmko on 15/05/2023 - 21:27

      You literally answered your own rhetorical question. Quite bizarre.

      • zoob on 15/05/2023 - 21:54
        +5

        Except there is no excess if you are not at fault. It astounds me the number of people that seem to have no idea how insurance works.

        • kerfuffle on 15/05/2023 - 22:03
          +4

          And even if you initially have to pay it in the first place, it gets refunded back to you if not-at-fault.

          Source: last car accident took five months to determine fault; my excess was refunded when I was finally deemed not at fault

        • Euphemistic on 16/05/2023 - 07:10

          IF, and that’s a big IF, the other party doesn’t cause any headaches and you can organise a cash payment to a repairer it may save money overall. Repairer may do a job cheaper, insurer doesn’t need any admin to carry out the claim etc.

          ALL costs of claims go onto premiums, so it costs everyone more for every single claim. Yes, you may not have to pay anything, but overall premiums will need to cover it.

          Totally agree that if there is the slightest sign of trouble, you use your own insurer - you do it for their service.

          Some insurers (especially budget ones like OP) require you to pay the excess up front which may mean you are out of pocket while the claim is sorted out. Kerfuffle indicates they were out of pocket for 5 months.

          • kerfuffle on 02/06/2023 - 11:58

            @Euphemistic:

            Some insurers (especially budget ones like OP) require you to pay the excess up front which may mean you are out of pocket while the claim is sorted out. Kerfuffle indicates they were out of pocket for 5 months

            I had to pay the excess to expedite the claim as the other party disputed fault. We were both with NRMA (allegedly; that's what I was told by a third party). NRMA just took it out of my settlement payment and then refunded when they finally noted I wasn't at fault after all.

        • S2 on 16/05/2023 - 11:55

          It astounds me the number of people that seem to have no idea how insurance works.

          There are third party, compulsory third party, comprehensive cover, landlord insurance, building cover, contents cover, travel insurance, lenders mortgage insurance and more.
          All these insurances are paid for but you hope to never need or use. I think it's normal for individuals not to know and understand them all. I also think insurance providers make it intentionally confusing for consumers.

    • HeWhoKnows on 16/05/2023 - 18:42
      -1

      you miss one very important point
      It still affects your insurance record

      One question that is always asked…

      "Have you made any claims in the last 5 years regardless of who was at fault" (maybe 3 years)

      BANG!

  • Wiadro on 15/05/2023 - 21:24
    +3

    just put a claim on your insurance, he is at fault so why you worried

  • elgrande on 15/05/2023 - 22:21

    Is there a good template for letter of demand?

    What could possibly go wrong?

  • bargaino on 16/05/2023 - 00:23

    so far seems only some paint chipped from bumper.

    Is it really worth all the hassle? No cracks? Just get a touch-up pen, and get on with your life?

    • kerfuffle on 16/05/2023 - 05:39
      +1

      Just because there's no visible damage on the outside doesn't mean there isn't any underneath the bumper

      • bargaino on 16/05/2023 - 10:05
        -1

        Yeah, but the question remains valid. The point of bumpers is to protect the car from minor impacts like that.
        So check or course, but if the bumper is not damaged, there should be no other damage or the design has failed.

        • mattmel96 on 16/05/2023 - 11:13
          +1

          The bumper for the vast majority of new cars is not the plastic bit that you see, but rather the big metal bar behind it, so while you might only see a couple of paint chips the structure behind may have done it's job in absorbing the impact forces and now needs to be repaired so that it can continue to work in the future.
          The plastic bumpers can and do bend and flex. Sometimes they will remain deformed, other times they will look undamaged.

  • thenavman on 16/05/2023 - 07:45
    +1

    Save yourself the headache and go through your insurance provider. You’re paying decent money for comprehensive insurance like many of us so let the insurance provider work for it. Lodge a claim and provide the other party’s name, address and license number etc.
    You won’t need to pay excess and your premium/no claim bonus won’t be affected.

  • starspawn on 16/05/2023 - 08:32
    +1

    It's a not at fault accident? You won't have to pay anything?

    Call your insurance
    Provide details of being rear ended
    They book your car in for repair
    Does not affect your non-claims discount, as you are not at fault

  • davefoster3029 on 16/05/2023 - 09:32
    +3

    OP is right to be cautious even for a not-at-fault. I tried to change insurers and the addition of a single not at fault claim increased the quote by about 5%. I was also getting a few on-line quotes and initially forgot the not-at-fault claim . When I went back to correct it several prices went up, some by as much as 15%. Some companies declined to quote. It's the fact that you claim not whether you are at fault that adds a red flag. For sure it's not as punitive as an at fault claim but it's definitely not without consequences

    • billy_bob on 16/05/2023 - 10:57

      @davefoster3029: Thanks you for pointing this out so eloquently. I had the exact same experience so now I will ALWAYS first try to get the at-fault party to claim through THEIR insurance. Even though insurance companies might say that your premium will not go up for not-at-fault claims, my experience is that it DOES. For me, it went up from around $1000 to over $3000, and when I called them to complain, they made up a whole lot of crap about the type of car, the address where it is garaged, etc , all of which was unchanged from the previous year!!

    • Newbie aussie on 16/05/2023 - 11:07
      +1

      Exactly!
      What others have advised here may not be completely true.
      WW insurance told us that if we raise a no fault claim, although we dont have to pay the excess, raising a no-fault claim means our policy premiums will be impacted during the next renewal.
      If you also try switching policies, other insurance companies will jack up the premiums even for previous no-fault claims.

  • Seraphin7 on 16/05/2023 - 09:53

    You can do all of these things.

    The primary difference will be do you want to do all the running around and chasing up that often becomes necessary in these circumstances? Or just sit back and let your insurer do all that for you?

  • RolandWaites on 16/05/2023 - 10:42

    Get a quote. Contact the other party and say "The panel beater's quoted this much — would you like to make a claim or pay in cash?". Let them decide. You don't have to do anything unless that person stops replying, then you can ask your insurance company to chase them up.

    You don't have to pay anything if you aren't at fault. This is basic car insurance.

    • Euphemistic on 16/05/2023 - 18:41

      You don't have to pay anything if you aren't at fault. This is basic car insurance.

      Except some of the cheaper insurers will make you pay the excess up front and pay it back once the claim is settled.

  • pharkurnell on 16/05/2023 - 10:45
    +2

    I'm not sure why people make insurance claims so confusing or difficult… or just dont understand how it works.

    • S2 on 16/05/2023 - 12:00
      +1

      I replied to a similar comment above. I find insurance overall confusing. Does having a "not at fault" claim increase my future premiums? If not, why do insurance providers ask how many claims I have made in the past regardless of whether I am at fault or not?

      • billy_bob on 16/05/2023 - 12:19
        +1

        "Does having a "not at fault" claim increase my future premiums?"
        In short, yes it does, despite what the insurance company may tell you. Processing any claim, whether at-fault or not, costs them money, and guess who has to pay for it….not them :)
        If you don't believe me, get some quotes online, with and without no-fault claims history and see which quotes come back higher.

        • S2 on 16/05/2023 - 12:56

          Thank you for the reply. I completely agree with you and think this answers pharkurnell's question of "why people make insurance claims so confusing or difficult."

  • doctordv8 on 16/05/2023 - 13:08

    Yes, you can ask.

  • 82norm on 16/05/2023 - 15:07

    This is like Deja vu all over again.

    • Euphemistic on 16/05/2023 - 18:42

      I feel like I’ve heard that before somewhere.

  • kanad on 16/05/2023 - 15:32
    +3

    Thanks to all that said I don't have to pay excess. I have confirmed this with Budget Direct. I was fearful the excess applies for all claims, much relieved now.

    • kerfuffle on 16/05/2023 - 22:25

      So why are you still with Budget Direct after whinging on here that they suck?

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