Car Insurance - Is It Better to Deal with The Other Driver's Insurance Company Directly?

ramona on 29/01/2024 - 12:41
Last edited 30/01/2024 - 12:08 by 1 other user

Hi all. I was involved in a car incident.

I hit the rear of the other car and will have to pay for it. Currently their car is at the mechanics and in the meantime they will be driving a rental car. I wanted to ask is it better to deal with the driver's insurance company directly or just pay the excess if I put in a claim? I know that the latter would result in an increase in premiums.

Currently excess is sitting at $1950, and the quote for the bill from the driver's insurance company is sitting at $3000 minimum (I will get the final bill in a couple of weeks). If I pay the excess, I save ~$1000 but that means my premiums will be going up. If I pay the bill, I spend $1000 more but will that mean my premiums won't go up?

Any advice would be appreciated!

Automotive Car Insurance Insurance

Comments

  • WoodYouLikeSomeCash on 29/01/2024 - 12:44
    +3

    You’ll need to calculate what your no claim discount is worth.

    • lgacb08 on 29/01/2024 - 19:42

      With $2k excess I bet no claim discount not worth the email it was written on.

    • HeWhoKnows on 30/01/2024 - 09:33

      OP hasnt mentioned any NCD

  • Poppin on 29/01/2024 - 12:45

    Hard to say for sure, I wouldn't do it unless the repair was less than the excess. The added headache isn't worth it in my opinion.

    Your premium will go up regardless. You can have a look by doing some quotes and see what the difference is with one more at fault incident.

  • soan papdi on 29/01/2024 - 12:45
    +21

    Add about $1000 per week for the rental car. Pay your excess and let your insurer handle it.

    • elgrande on 29/01/2024 - 13:12
      +2

      This.

      Specially with all those OzB threads on expensive car hire debt recovery..

  • holdenmg on 29/01/2024 - 12:46
    +2

    What is your vehicles damage/cost of repair?

    By the time the other drivers car is repaired the Rental Cost will probably drive it over $3000.

  • o53djz7qTPY4der on 29/01/2024 - 12:46
    +9

    Why do you have insurance?

    • Nugs on 29/01/2024 - 15:01

      For a rainy day
      .

  • redforever on 29/01/2024 - 12:47
    +2

    What about damages to your car?

  • boomramada on 29/01/2024 - 12:52
    +2

    Currently excess is sitting at $1950

    Are you like 18y old? Or you increase the excess to $1950 so you be paying less per year?

    Claiming insurance, your premium not gonna go up by $1000.

  • Muzeeb on 29/01/2024 - 12:53
    +6

    FFS just go through your insurance and make it their problem.

    • boomramada on 29/01/2024 - 12:56
      +1

      what fun in that, then there be fewer posts in Ozb and Scotty will lose ROI per number of threads lol

  • Euphemistic on 29/01/2024 - 13:05
    +4

    If the other driver has a rental car, you need to go through insurance. $3k repair plus rental is going to cost a lot more than loss of no claim

  • Fredfloresjr on 29/01/2024 - 13:09

    If the mechanic found out that you will pay them and not directly from insurance, your $3000 will be come $5000. lol.

  • JMosk on 29/01/2024 - 13:14

    What is your time worth?

  • apple2016 on 29/01/2024 - 13:18
    +2

    Currently excess is sitting at $1950

    you pay $1950 , you can get your car fixed too and let the insurer do the handling of the other car.
    Also could do with a poll

  • 87percent on 29/01/2024 - 13:29
    +2

    $2k excess? How much is your insurance $20 a year?

    • Gdsamp on 29/01/2024 - 14:41

      was probably subject to legal discrimination by their insurer (e.g. under 25 yo and/or male)

      though based on the fact OP did in fact cause an accident some may conclude they were correct to

      • BLAIL on 29/01/2024 - 17:13
        +1

        My excess when I was in my low 20s was $1200 or $1250 and that was by choice. Didn't end up having to claim back then.

  • dtc on 29/01/2024 - 13:37
    +1

    The increase in premium will be less than you think

    Run a dummy insurance application online, for one put no claims and the other put 1 claim and see what the difference is. It will be way less than $1000; and once you have a few years of no claims (3 or 5, depending on the insurer) then the impact goes away in any case.

  • Dollar General on 29/01/2024 - 13:41

    Is there a time limit on making a claim? Probably best to read your PDS to make sure all will be ok

  • Typical16-bitEnjoyer on 29/01/2024 - 13:45
    +1

    Deal with them direct and you potentially void your own insurance. Beware.

  • Ridiculous Panda on 29/01/2024 - 14:30

    If you change insurance in the near future, most likely you will have to answer: “have you been involved in an accident regardless of who was at fault?”.. I don’t remember seeing “have you made a claim?” But could depend on the company.
    Either way, for at least $1000 (it will be more), it is a no brainer to put in a claim and get your car fixed as well.

  • GordonD on 29/01/2024 - 16:01

    There's a relevant saying.

    Why have a dog and bark too.

  • Nucleus Acumbens on 29/01/2024 - 17:27

    You don't have a contract with the insurer of the other vehicle so they can't deal with you even if they wanted to.

    • Euphemistic on 29/01/2024 - 17:30

      You can choose to deal with them when they contact you to pay for the damages. You may choose to pass it to your insurer.

  • tsunamisurfer on 29/01/2024 - 18:23

    Your premiums will go up regardless if you put a claim in or not.

  • 2esc on 30/01/2024 - 22:09

    Go through your insurance

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