How to Claim Car Insurance When You're Not at Fault

It can be a stressful situation not knowing whether or not you’ll need to pay for your car insurance excess if you’re in a not-at-fault accident.

When you've done nothing wrong and you're unsure of how you’ll deal with the aftermath, the last thing you need is more stress trying to work through a complicated insurance claim.

Proving that you weren’t at fault and that the other driver caused the accident means their insurance should cover your damages.

But proving fault isn't always straightforward, which is why you need to follow the right steps as soon as the accident happens.

• Call 000 immediately if anyone is injured

• Take the other driver’s name, address and registration number

• If it’s safe to do so, take photos of the damage

• Contact Budget Direct to lodge your claim

The moments following a car accident, not just when you’re not at fault, are critical - not just for your safety, but for your claim. If an accident occurs, the following steps will help you gather evidence for your insurer.

1. Firstly, check for injuries. Your safety and the safety of others comes first. If anyone is hurt, call 000 immediately.

2. If possible, turn on your hazard lights and move your car to a safer location and away from traffic. If the vehicles are causing a traffic hazard and it’s safe to do so, move them to the side of the road.

3. Exchange details with any other drivers involved in the accident. Ask for their:

   • Name

   • Phone number

   • Address

   • Driver's licence number

   • Vehicle registration

   • Insurance details

4. Take photos of their licence and registration number (on their license plate) as this can help with your claim and give you confidence the details are correct. It’s also important to document the scene, such as:

   • Damage to all vehicles

   • Location

   • Road conditions

   • Traffic signs

   • Skid marks

5. Gather all available witness names and their contact details for further follow-ups if these are required. This can be helpful if there’s a dispute about who was at fault.

6. In most Australian states, you must report an accident to the police in certain situations. This includes if someone is injured, if the other driver refuses to provide their details or leaves the scene, or if you suspect they’re under the influence of drugs or alcohol.

7. Lodge your claim with your insurance company as soon as possible.

One of the key questions for any car insurance claim is who caused the accident. This matters because the at-fault driver is typically responsible for covering all the costs to repair or replace your car.

If you have a policy with Budget Direct, we will deal with the at-fault driver’s insurer, or the driver directly if they’re uninsured. If the other driver contacts you, including through a letter of demand or court documents, contact Budget Direct straight away and we’ll take care of it for you.

If the other driver doesn’t have car insurance, we will pay for your repairs and other costs, such as towing or car hire, if this cover is included in your policy. 

We’ll also attempt to recover the costs from the at-fault driver.

If the other driver leaves the scene before you can get their details, you’re advised to report this to the police as a hit-and-run.

A police report is important evidence that Budget Direct can use to assess your claim and support you. Although it’s simpler to have the driver’s full details on file for a claims process, we can still work with you to assess your claim and situation. 

However, it should be noted that if the other driver can’t be identified, you may still need to pay an excess. Ensure that if you can’t collect the driver’s full name, that you note down their registration number if possible.

Photos, dashcam footage, independent witness statements, Australian Road Rules and police reports can help determine who is at fault in an accident. Without evidence, it can become one person’s word against another.

Fault isn’t always black and white, but sometimes it’s obvious, like when someone rear-ends you at the lights. Other times, it’s less clear, and that uncertainty can turn a simple claim into a more stressful dispute.

If a dispute arises with the other party, Budget Direct will manage communications with them or their insurer, to help determine who was at fault, if you have Comprehensive Car Insurance. Most contested claims are settled out of court, but in the rare event a claim does go to court (and you may be asked to appear as a witness), we’ll cover the court costs.

You also have the right to lodge a complaint if you're unhappy with any of our products, services, decisions, or actions. If we’re unable to resolve your complaint, you can also lodge a dispute with the Australian Financial Complaints Authority (AFCA).

Sometimes responsibility is shared. This is known as contributory negligence. If you have Comprehensive Car Insurance, Budget Direct will work with the other insurer to agree on how to  split the damage costs, which is typically a 50/50 split if both parties are at-fault.

If you realise the accident was your fault, Budget Direct can help settle the claim. Lodge your claim, pay any applicable excess, and Budget Direct will handle the claim with the other party or their insurance company.

Being in an accident when you’re not at fault is stressful enough. A complicated claims process shouldn’t make it worse.

With Budget Direct’s award-winning Canstar Outstanding Value car insurance, you can get clear, straightforward support when you need it most.

Your Budget Direct Comprehensive Car Insurance policy will cover the cost of repairs, replacing your vehicle, or paying its value if it’s written off.

If your car isn’t safe to drive after the accident, we’ll also cover recovery, towing and storage costs, helping you manage these costs and giving you one less thing to worry about when it matters most.