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Not-at-Fault Driver Wins Case After Invoking Insurance Policy

Article Summary:<ol><li>Court upholds rights of not-at-fault drivers.</li><li>Australian law entitles victims to replacement vehicles.</li><li>The case in June 2021 involved a ‘new for old’ policy with Allianz Insurance.</li><li>The at-fault driver’s insurer challenged the duration of the replacement vehicle hire.</li><li>The court affirmed the not-at-fault driver’s right to a hire car while awaiting a replacement.</li></ol>A recent court decision has supported the rights of not at fault drivers. It was found that drivers who are not at fault are entitled to claim loss of use while waiting for a replacement vehicle if their insurance policy allows a ‘new for old’ replacement of a new vehicle after total loss.Under Australian law, you’re entitled to be placed back into the position you were in before your accident. This means you are entitled to a like-for-like accident replacement vehicle, at no cost to you. And, you’re also entitled to keep the vehicle for the entire duration of your repairs,&nbsp;<a href="https://www.right2drive.com.au/articles/right2drive-supports-a-not-at-fault-driver-during-his-total-loss-claim" rel="noopener noreferrer nofollow">or in the case of total loss, until you receive settlement.</a><h2>What’s The Background Of This Case?</h2>In June 2021, a driver in Kenthurst, NSW was involved in a not at fault vehicle accident. His vehicle wasn’t drivable immediately following the accident and was towed to a holding yard for assessment. He hired an accident replacement vehicle from Right2Drive shortly after the accident to be able to perform his usual activities.His vehicle, which had been purchased from new at the end of 2019, was subsequently assessed as a write-off. However, he held a ‘new for old’ policy with Allianz Insurance and lodged a claim with them for his vehicle damage.The not at fault driver’s original vehicle had been discontinued, and so Allianz Insurance offered to replace it with an equivalent vehicle or to pay him out for the value of his vehicle. Allianz Insurance advised that the wait on the equivalent vehicle was approximately 3 months, and the not at fault driver opted for the equivalent replacement vehicle.<img alt="When the not at fault driver's vehicle was assessed as a write-off, he was offered an equivalent replacement or a pay out from Allianz Insurance." src="https://www.right2drive.com.au/wp-content/uploads/2023.05.30-Blog-Post-Image-1.jpg" title="" resizable="false"><h2>Why Did This Case Go To Court?</h2>In this instance, the at fault driver’s insurer claimed that the not at fault driver should have accepted the payout offered by Allianz Insurance and purchased another vehicle themselves with a view of reducing the hire car duration through Right2Drive.The at fault party claimed that the hire duration was excessive and argued that the not at fault driver used the Right2Drive vehicle for an unreasonable amount of time. It was also stated that the not at fault driver failed to prove he had suffered physical inconvenience and loss of amenity use.<h2>What Did The Court Decide?</h2>The court found that the not at fault driver was entitled to invoke his policy of insurance and that it was reasonable for the not at fault driver to make a claim through his insurer and to take up his policy option of an equivalent replacement vehicle.The court also found that the plaintiff did suffer both a physical inconvenience and the loss of use of his vehicle and was entitled to a hire car while awaiting delivery of the equivalent replacement.The rate of hire with Right2Drive was agreed to before the hearing and the duration in full was allowed by the court.<img alt="The court found that the not at fault driver was entitled to invoke his policy of insurance and that it was reasonable for the not at fault driver to make a claim through his insurer." src="https://www.right2drive.com.au/wp-content/uploads/2023.05.30-Blog-Post-Image-2.jpg" title="" resizable="false"><h2>How Does This Case Reinforce The Rights of Not At Fault Drivers?</h2>The decision put forward by the court reinforces the fact that when a driver is not at fault, they are entitled to be restored to the position they were in before their accident. In this case, the not at fault driver was entitled to make use of the ‘old for new’ replacement under his insurance policy and was also entitled to an accident replacement vehicle to mitigate his loss of use during the time he had to wait for his equivalent replacement through his insurer. Not at fault drivers have rights that need to be upheld, and Right2Drive will continue to ensure that these rights are recognised.

 Not At Fault After An Accident?

An accident loan car is a replacement car provided to you while your own car is undergoing repair. In case your car is totally damaged, you can use this replacement car until you receive your total settlement. You can reach out to Right2Drive to apply for and receive an accident loan car.

What Is an Accident Loan Car, and How Does It Work?

As a not-at-fault driver, you only need to cover fuel, tolls, and other expenses, not the car hire cost. Credit hire companies work directly with the at-fault driver and their insurer to recover the cost of the service.

Who Pays for the Loan Car After a Not-at-Fault Accident?

Yes. If eligible, you can drive an accident loan car hired from Right2Drive for the duration of the repair or until your claim is being processed. You will not be left without transportation during a challenging time.

Can I Get a Loan Car While Waiting for My Accident Settlement?

You can keep the loan car after an accident for a reasonable period of time, which is usually the time it takes to get your original car repaired or until you receive a settlement (this applies if your car is completely wrecked and cannot be used at all).

How Long Can I Keep a Loan Car After an Accident?

Loan car accident service providers retrieve rental costs from the at-fault party and their insurers. However, you still have to cover fuel, tolls, and other expenses related to daily car use as you normally would with your own car.

Is a Loan Car Free If I’m Not at Fault in an Accident?

Accident Loan Cars: Your Questions Answered

Legal Right To Pre-Accident State

When you are involved in a motor vehicle accident with no fault of your own, you should Collect details from the other driver, such as their name, address, phone number, vehicle licence, and witness details. Document the accident by taking photos, notes, and gathering evidence. Inform the insurance company and seek legal advice on getting your insurance policy.

What details should I take when I’m involved in a not at fault accident without insurance?

The other driver will be at fault if they do not follow road rules. If there is enough evidence to show their actions directly contributed to the collision, or there have been traffic law violations, such as speeding or running a red light, the other driver will be charged.

How is a driver deemed at fault for an accident?

If you are an uninsured driver, you are at greater risk of sustaining damages. Even if you make a valid claim and the other driver agrees to pay for the damages, your personal coverage will exceed the regular damages and cover medical expenses, lost wages, and property damage. Seek legal aid before making claims from the other driver or at fault party.

If the at fault driver pays anyway, why do I need insurance?

Before you hire a car for personal use, get legal advice to understand your insurance needs. There is third-party car insurance and comprehensive car insurance. Lawyers can help you compare the plans, add-ons, and claim process and understand the fine print.

What type of car insurance should I take out?

In Australia, Compulsory Third Party (CTP) insurance is mandatory for all registered vehicles to cover injury liability. Even if you were not at fault for the accident, you will be fined and penalised for driving without this insurance. These penalties vary across states.

Not-at-Fault Driver Wins Case After Invoking Insurance Policy

Not At Fault After An Accident?

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