what if I don’t have insurance or don’t want to use my insurance?
You should get legal advice on what to do if you do not have insurance or have decided not to use your insurance to address the claim.
Do I have to pay for property damage?
Generally, the person at fault in the accident is responsible for paying all damages.
Reading: What happens if you ignore an insurance claim
It is important to get legal advice about who was at fault. in some cases, the courts decide that both drivers are partially responsible for the crash.
How do I treat a property damage claim against me?
Get legal advice as soon as you receive a letter demanding payment from the other driver or their insurer or a debt collector.
See also: Is car insurance cheaper if youre married?
If the accident was your fault, negotiate with the other driver or their insurer as soon as possible.
Request copies of all quotes and, if reasonable, make arrangements to pay off the debt. You can offer to pay in installments, but the other party or their insurer doesn’t have to agree to that.
If you can’t pay the full amount, figure out what you can realistically pay. Please provide reasons why you cannot pay the full amount right away.
what if I think the amount claimed is unfair?
if you think the amount claimed is too much:
- Gather as much evidence as you can to back this up.
- ask the insurer for copies of itemized bills, photos, and adjuster’s reports.
- Look carefully at any documents you receive from the insurer.
- If you still believe the amount claimed is unfair, you will need to explain why and provide evidence, such as a written opinion from a mechanic or repairman as to what the fair repair costs would be based on the information you have provided, for example, photos .
- You can:
- Send a letter to the insurer or other driver explaining your position and attaching any evidence.
- request that the amount of the repairs be reviewed by the insurer’s internal dispute resolution process.
- write to the other party (if uninsured), explaining your financial situation. point out that if they take you to court, they are unlikely to get any money. if the other party is insured, you can also write to your insurer, or you can use the insurance code of general practice to try to write off the debt. covers an internal dispute resolution process and an external review through the Australian Financial Complaints Authority.
- In some circumstances consider voluntary bankruptcy. there are many negative consequences of this. It is essential that you seek financial and legal advice if you are considering filing for bankruptcy.
- fact sheet – car accidents
If you can’t settle with the other driver or their insurer without going to court, legal fees and court costs can usually be added to the amount claimed.
what happens if I do nothing?
See also: How soon should I get malpractice insurance? — Aegis Malpractice Solutions
don’t ignore the problem. The other party or their insurer may start a court case against you, which will increase your costs.
what if I can’t pay anything?
If you can’t afford to pay anything and don’t have assets to repossess or sell, there are at least two options:
resources
Revised: November 7, 2018
See also: Contents insurance | Home insurance | Choosing the right insurance | ABI
