How do excesses / deductibles work when not at fault in a car accident?
It is important to know how excesses (also known as deductibles) work when involved in a Not at Fault car accident.
Every policy of insurance has an excess which applies to any claim. This excess is the insureds initial payment obligation when a claim is made against your policy. Excesses can range from $200, all the way up to several thousands of dollars, if so chosen. This amount of the excess depends on the insureds risk threshold should a claim occur.
If you are at fault in a car accident, your excess will automatically apply. If you are not at fault, the excess generally would not apply however certain conditions must be met for this to waived by the insurer. The conditions to waive the excess are as follows:
- The other party at fault is clearly identified with rego details, contact numbers, drivers licence details including their address, their policy of insurance detail if available, and
- The other party’s insurer has agreed to indemnify you for the damage caused to your vehicle
For the above to occur, your version of the incident, once shared with your insurer will be communicated to the other party’s insurer and acceptance of liability will occur. This will waive your excess.
The above can only occur should the insurer be able to communicate with the third party and their insurer. Failure to capture any details noted in 1. above will prolong the recovery process and could mean your excess will apply in the interim should you wish to get your vehicle repaired.
On occasion, version of events can differ between parties. This happens more often than we would like. This can also delay or compromise the recovery process, delaying any recovery process or the ultimate waiving of excesses. For this reason any witness details or any other corroborating evidence is important to be captured. You can never be too prudent when it comes to protecting your version of the events. Take plenty of photos and or videos if you can.
So in summary, in a not at fault accident, your excess continues to apply until the other pay and their insurer accepts Liability for the accident. You may get your car fixed at any time and an excess would apply until the above has been addressed.
At Brees, we share our expertise openly so that you better understand how an excess applies in a not at fault car accident. – Cover that’s Right. Peace of Mind. Have the right Conversation.