What happens if someone else crashes my car in Australia? This article explains what happens when someone else drives your vehicle and is involved in an accident. Discover what happens next, including your legal options and how a car insurance policy works in the worst-case scenario.
What happens if someone else is driving my car and gets in an accident?
What happens after someone else crashes your car depends on who the at-fault driver was and the type of car insurance policy. In Australia, all motor vehicles must have third-party insurance cover, which means you could be protected when a friend crashes your vehicle and the other driver is at fault.
What if someone is injured when a friend crashes my car?
When a friend crashes your car and someone is injured, it can be complicated to determine who is eligible to claim compensation for their physical and psychological injuries.
The Car Accident Compensation Lawyers QLD provide a free case review that can advise on:
- Claim eligibility
- Which insurance company is liable to pay common law damages
Our motor vehicle accident compensation team offers a genuine 100% no-win, no-fee policy. Pay when you win and zero if you lose. It’s free to learn your legal options. Call 1800 860 777
Free Claim Review
Quick Steps After a Car Accident
What you do immediately after a friend crashes your car will help determine the outcome of any subsequent legal action and insurance claim. Here are the recommended steps:
- Move to a Safe Location: If possible, move your motor vehicle to a safe location to avoid further damage or risk to other road users.
- Call the Police: Report the incident to the police, especially if there are injuries or significant property damage. You’ll probably need a formal report to file an insurance claim.
- Exchange Information: Next, collect and share details with the other parties involved including their names, insurance information, addresses and phone numbers.
- Document the Accident Scene: Get photographic and video evidence of the accident. Record damage to the vehicles involved in the car crash. Also, collect witness accounts, as these are crucial for establishing the at-fault driver.
- Notify the Insurance Company: Contact your insurance company as soon as possible and provide them with detailed information about the accident. In some cases, you can be eligible for a replacement vehicle. Following these steps will help you get the support you’ll need during the claims process.
Who Covers the Damage When Someone Else Crashes Your Car?
When someone else crashes your car, it can be complicated to know who will cover the damage. Regardless of what a car insurance policy offers, the vehicle owner will probably be financially liable for damages. The key elements that determine coverage include:
- Whether the driver had permission to use your vehicle
- And the terms and conditions of your car insurance policy.
Different types of policies, such as
- Comprehensive car insurance
- Third-party insurance
- and Compulsory Third Party (CTP) insurance
Each plays a distinct role in this type of motorcycle accident, particularly in how they cover property damage and car accident injuries.
Comprehensive Insurance Coverage
Comprehensive car insurance offers the broadest protection, covering damage to your vehicle, regardless of whether it’s driven by a listed or unlisted driver. However, if an unlisted driver crashes your car, an additional excess fee might apply. To avoid such financial implications, it’s advisable to list regular drivers on your policy.
If you are letting other people drive your car, this kind of insurance is a great option since it covers damage to other vehicles and property when you are at fault.
Third-Party Insurance Coverage
Third-party insurance is designed to cover damages you cause to other people’s property and vehicles, including third-party property insurance cover. However, it does not cover repairs to your own car or other people’s vehicles. If someone else crashes your car when driving without your permission, it is usually considered non-permissive use, and the insurance claim could be denied.
CTP Insurance and Personal Injury Claims
All Australian vehicles must have compulsory third-party CTP insurance, which covers personal injuries sustained in motor vehicle accidents. Although it does not cover vehicle or property damage, it can ensure fair compensation for personal injury claims. This rule applies regardless of who was at fault in the accident.
Do I Have a Valid Claim?
At Fault and Not-at-Fault Accidents
The Other Driver Caused the Accident
If the other driver is at fault, their insurance company is liable for damages. A successful outcome can significantly reduce your financial burden, as their insurance may cover the repair costs for your vehicle. In this situation, you should:
- Collect detailed information about the accident, including details of the vehicles.
- Notify the other driver of your intention to seek compensation for damages.
The Person Driving Your Car is at Fault
When the person driving your car is at fault, you are financially responsible for the damage caused by your driver. In this case, it’s vital to know who is responsible for notifying the insurance company, as they will be negotiating with the other party’s insurer.
- If a friend crashes your car, they cannot make a claim against your CTP insurance for any injuries resulting from the accident.
- Sometimes, more than one driver is to blame, with each having a portion of responsibility, which is called contributory negligence. In this case, more than one person may be responsible for covering damages.
The Car Accident Compensation Lawyers QLD provides a free case assessment that can explain eligibility to seek compensation after a car accident. We also provide a 100% no-financial-risk guarantee for car accident legal services. Pay only for a win and nothing if you lose. Call 1800 860 777
Excess Fees and Financial Implications
Excess fees can create a substantial financial burden when another person is at fault for an accident while driving your vehicle. Typically, you will face additional excess fees, particularly if the driver is young or inexperienced.
Legal Responsibility and Seeking Legal Advice
Legal responsibility for a motor vehicle accident depends on who is at fault and will impact your ability to make a claim. In Australia, you are entitled to seek legal advice for accident claims and to understand how contributory negligence will help determine the outcome.
Age and Experience of the Driver
Many car insurance policies in Australia have age restrictions, so they don’t cover drivers under 25 or 30. Consequently, younger drivers carry a greater risk of a denied claim.
The perceived greater risk associated with less experienced or younger drivers frequently results in higher excesses. When the policy does not include them as permissive use drivers, the significance of this feature increases.
Experienced Drivers and Policy Terms
Experienced drivers generally result in smoother claims processes and lower excess fees. Insurance companies see these drivers as less likely to file claims, so they’re rewarded with better outcomes and lower insurance rates.
Listing experienced drivers on your policy can also help reduce insurance costs.
Handling Repair Costs and Financial Hardship
If you can’t afford repairs, you may be able to negotiate a payment arrangement with the insurance company that fits your budget. In some cases, you can request a waiver of your repair-related debt.
Negotiating Repair Costs
The insurer usually requires multiple repair quotes to ensure you’re getting a fair price. When discussing costs with insurers, present all relevant documentation, including previous repair costs.
Options for Financial Assistance
Insurance companies must consider repayment plans for people facing financial difficulties due to car accident debts. Under the General Insurance Code of Practice, insurers must temporarily halt debt recovery actions when a customer requests financial hardship support.
Impact on Your Insurance Premium
Accidents often increase insurance premiums, even if you weren’t driving. Your premium rates are impacted by your claims and driving history, and in the worst-case scenario, insurance companies may revise policy terms, including car accidents caused by others.
Premium Increases and Policy Adjustments
At-fault accidents can lead to significant changes in your insurance premiums and policy terms. After accidents, insurance companies typically set higher premiums, especially for policyholders with past claims.
Preventative Measures to Minimise Impact
- To minimise premium increases, add regular vehicle users to your policy as permissive-use drivers. Some insurers offer forgiveness options that prevent premium increases after the first at-fault accident.
- Insurers will usually assess you with a lower risk (and lower premiums) if you take a defensive driving course.
It’s Free to Know Your Rights
Legal Action for Compensation Claims
If someone crashes your car while driving without permission, legal action may be necessary. This option can be unpleasant, especially if it involves a family member or a visiting relative borrowing your car. However, this is less true when a CTP insurance policy covers the loss.
Filing a Claim Against the At-Fault Driver
After an accident, you can file a claim in the Magistrates Court (or QCAT, depending on the value) where the accident occurred or where the defendant lives. If the other driver does not respond to a court claim within 28 days, you may request a default judgement, which can be enforced in the same way as a standard Magistrates Court order.
Considering Legal Action
Request a list of relevant documents from the other person involved in the accident. If they refuse to provide these documents, you have the right to seek legal advice.
In some cases, the liable party will settle a claim directly with you or negotiate a mediated settlement without going to court.
What Happens When a Friend Crashes Your Car FAQs
What happens if someone else who isn't on your insurance crashes your car?
When a person who isn’t named on your car insurance policy causes a crash while driving your vehicle, comprehensive insurance might pay for the damage, with an excess fee.
Some insurance policies have specific terms for unlisted drivers, especially younger drivers, that limit the insurer’s responsibility to pay out. But you may be covered if you have third-party damage cover, which:
- won’t pay for damage to your vehicle
- will pay for damage to other property or vehicles
What should I do immediately after someone else crashes my car?
Stay calm, check for injuries, then exchange details with the other party, document the scene, and contact your insurer.
Does my insurance cover damages if someone else was driving my car?
Your insurance coverage for damages when someone else is driving your car depends on your specific policy. Typically, comprehensive insurance may cover both listed and unlisted drivers, whereas third-party insurance often has restrictions.
Will my insurance premium increase if someone else crashes my car?
Yes, if someone else crashes your car and makes claims under your policy, your insurance premium will likely increase.
What happens if the other driver is at fault?
If the other driver is at fault, their insurance is usually responsible for covering the damages.
What happens if someone hits my car, and they aren't insured?
If an uninsured person hits your car and causes damage, you could still seek compensation for your loss. You could either
- Negotiate directly with the other driver
- Or commence legal action
