Car accidents are increasing, and it pretty much makes people stressed about what they should do and what not. The entire situation creates panic among people who are driving, and they end up having the biggest question about insurance excess. Many drivers often ask, “Do I have to pay the excess if it’s not my fault?” Well, it is a complicated process, and not-at-fault accident cases make it even more complex, so it’s better to understand everything in detail and clear every doubt about yours! It is also important to know that paying excess upfront doesn’t always mean it’s final, and you may get it refunded later if your insurer recovers the cost. That’s why being informed can save you money, time, and stress in the long run.
When Don’t You Have to Pay the Excess for a Not-at-Fault Claim?
Every insurance company has different terms and conditions that decide if you have to pay excess or not, even though you are not at fault in a car accident. Many factors, like who caused the accident and whether the person can be identified, decide the excess pay. It is a somewhat complicated process, but once you understand it, you can claim your car insurance without any stress.
1. The Other Driver is Clearly At Fault and Identified
If you are in an accident, but the other driver is at fault, and you can prove it with clear evidence, then you avoid excess pay. However, insurers need solid evidence like dashcam footage, witness statements, or a police report where it’s clear that you were not at fault and the other driver was at fault, and the other driver can be fully identified by their information like name, address, phone number, and vehicle registration; then you can be free from paying your excess. Well, it’s pretty simple to understand that your insurer would want to recover the costs from the at-fault party or their insurer, so when it’s the other driver or their insurer who has to pay, you will be free from any financial penalty.
2. Your Policy Covers No-Excess for Not-At-Fault Claims
Some car insurance policies have made it clear that there is no need for excess in not-at-fault claims. However, the at-fault drivers should be identified. You can check the policy in the Product Disclosure Statement (PDS) and see if the condition applies only if the other driver is fully identifiable. This condition eliminates the question of whether you pay the excess if it’s not your fault. It doesn’t matter if the other driver at fault is uninsured because if they are identifiable, then your insurer will still pursue recovery.
3. You Have No Claim Bonus Protection
If you closely read the policies of car insurance, there is a no-claim bonus protection, which, if you choose it, won’t stop you from having to pay the excess. However, it can help in keeping the no-claim discount even when you make a claim and even if the accident is your fault. If you are not at fault in an accident, then it helps protect your good record, especially when the insurer can recover their money from the other driver who is at fault.
4. Special Provisions for Certain Drivers
Some policies specifically offer extra protection for named drivers like senior or experienced drivers. In such policies, insurers do not apply excess, and even if they do, it’s reduced in not-at-fault claims. However, these policies are very specific, and not every insurer provides them, so check the PDS for details. Such provisions may also apply to learner drivers or those with clean records, depending on the insurer.
When Do You Have to Pay the Excess for a Not-at-Fault Claim?
Generally, an excess is paid by car insurance when making a claim, and you have to pay that amount on your own before your insurer covers the rest. However, the question remains, do you have to pay excess if you’re not at fault? The answer is not straightforward because many insurers take the excess money if you are not at fault, but it depends on many aspects of the incident and the terms of your policy.
1. The At-Fault Driver Cannot Be Identified
It is very important to identify the other driver. In many cases of not-at-fault claims, if the at-fault driver cannot be identified, the excess has to be paid by the not-at-fault driver. For example, there are several cases of hit and run or car damage while it was parked, where the owner who doesn’t know who caused the damage might have to pay excess because of the “unidentified driver” situation. In such cases, insurers have to recover the cost, but as the at-fault driver is unidentified, they may ask the owner to pay the excess even though it wasn’t their fault.
2. Insufficient Evidence of Who’s at Fault
It is very important to have solid evidence against the at-fault driver before making at-fault claims. Often, even if you think you didn’t cause the accident and it wasn’t your fault, your insurance company might still ask you to pay the excess if there isn’t enough proof. This type of case happens when both you and the other driver tell two different stories, and there is no proof, like video footage or witnesses. So, the insurance company fixes your car but keeps the excess you paid till they can prove who was actually at fault or recover money from the other driver. Try to stay calm and take photos of the scene, damage, or anything else that can be useful later. Show exactly what happened because every bit helps.
3. The At-Fault Driver is Uninsured or Doesn’t Cooperate
In some cases, even if the other driver at fault is identified but doesn’t have insurance or refuses to cooperate, you have to pay the excess yourself. This policy might sound ridiculous, but insurance companies will try to get the recovery from the other party, and if they are successful, your money will be refunded, but it can take a long time.
4. Your Policy Requires the Excess Regardless
Many insurance companies have policies where there are conditions that require you to pay the excess, even in cases where you are not at fault because of certain terms mentioned in the Product Disclosure Statement. In some conditions, like the type of coverage you have and who was driving your vehicle, you have to pay the excess, and that’s why it’s always important to check and understand the PDS before insurance.
Do I Have to Pay an Excess for a Rental Car Following a No-Fault Accident?
There is a big question: Do I pay excess if I am not at fault for the rental cars following the accident? Generally, if you are not at fault and your car is being repaired, you don’t have to pay excess for a rental car. Your insurance company or the at-fault driver’s insurer can cover the cost of your rental car, but different companies have different policies, and they depend on a couple of factors.
Your Insurance Policy Inclusions
Many car insurance policies help recover the cost of a rental car when you are in a not-at-fault accident. That’s why you have to check PDS and see if such a policy exists in your insurance. Your rental car might be arranged by your insurers, and you don’t have to pay the excess, but make sure it is not damaged when you are using it.
Third-Party Paying for the Rental
If your rental car costs are covered by the at-fault driver and their insurer accepts full responsibility, then you don’t have to pay excess unless you damage the rental car. Once your car is repaired and you get it back, then you have to return the rental car as well. Also, make sure that you return the rental car on time to avoid late fees or additional charges.
What You Can Do to Try and Avoid Paying an Excess
Paying an excess generally depends on your insurance policy, but there are certain things you can do to avoid paying an excess.
Collect Sufficient Evidence at the Scene
Gather proof that can support you in your innocence. Take photos of the accident scene, damages, road conditions, and other things to prove that you are not at fault. If there are witnesses available, try to obtain their contact information.
Report the Incident to Your Insurer Promptly
Once you know you are not at fault in a car accident, you immediately inform your insurer about the accident and start the claim process because it takes time to process everything step by step. If you delay the reporting, it will affect your chances of avoiding the excess, so always act quickly.
Check Your Insurance Policy Details
Before signing your final insurance papers, make sure you have carefully read the policy and understand whether you are covered for not-at-fault claims. It’s a good idea to ask your insurer directly about situations where excess is required or waived.
FAQs About Car Insurance Excesses
Every car insurance policy is different and complicated to understand. That’s why people have many questions, and we have answers.
Do I Have to Pay an Excess if My Car Is Stolen?
Yes, when you file a claim, you have to pay an excess when your car is stolen, depending on your insurance company policies.
Do I Have to Pay an Excess for Hail or Other Weather Damage?
Yes, we know it’s not your fault that hail or a storm happened, but car insurance companies do not cover weather damage like hail or floods, and you have to pay the standard excess.
Do I Have to Pay an Excess if My Car’s Been Vandalised?
Yes, you have to pay an excess, but vandalism is generally covered by insurance. If the person who vandalised your car is caught and pays for damages, then your insurer may reimburse you.
Do I Have to Pay an Excess if My Car’s Windscreen Is Damaged?
Many policies have optional windscreen cover, and you might not have to pay excess or very little. But if your insurer does not offer this option, you will have to pay the standard excess for repairs.
Do I Have to Pay an Excess if My Car’s Written Off?
Yes, if your car is written off, you will still have to pay the excess before your insurer pays the value of your car.
Do I Have to Pay an Excess if I Hit a Kangaroo?
Yes, you must pay an excess for animal collision, but your insurance will cover your other belongings.
Do I Have to Pay an Excess for Wall Chargers and Mounts?
It depends on what kind of policy you have because some policies cover it if it’s listed as an accessory, but others don’t.
Is There an Unlisted-Driver Excess?
Yes, people who don’t have their names on your insurance are driving and have an accident, and then you have to pay excess under the unlisted-driver excess.
Can I Pay My Car Insurance Excess in Instalments?
Generally, you have to pay the excess upfront before repairs or claim settlement proceeds, but some insurers have certain policies that help you pay in instalments. If paying the full amount is difficult for you, you should talk to your insurer to discuss other available flexible payment options.
