Car Insurance Claim: No Fault Accident

We understand that being a part of a car accident is a difficult experience for everyone involved.

But not everything has to be difficult. Budget Direct's Car Insurance claims process can help you claim loss or damage to your vehicle in both an at fault and a no fault accident scene.

Here is our Car Insurance claims process for when you're in a no fault car accident.

When it comes to car insurance claims, one of the most critical questions is who caused the accident.

That’s because the at fault driver (or their insurer, who reimburses them) is required to pay for the costs of the accident.

These costs can include towing, repair costs or replacement of your car and hire car costs.

Here's what you should do after a car accident:

1. If anyone is injured or there is major damage to a vehicle, call 000 for assistance from an ambulance or the police.
2. Get the details of any other drivers involved including their:

• Name
• Phone number
• Address
• Vehicle registration number
• Insurer

If the other driver refuses to give you any details at the accident scene, you should call the police as soon as possible.

3. Ask any witnesses for their names, contact details and any first hand information about the accident.
4. If it’s practical and safe to do so, take photos to document the accident scene and show the extent of the damage.
5. Call your insurance provider to make a claim. It’s important to understand your cover and speak to your insurer before dealing with other companies to manage claims or deal with hire cars.

Once you’ve lodged a claim with Budget Direct, we’ll deal with the at fault driver’s insurer (or, if they’re an uninsured driver, the at fault driver themselves) on your behalf.

Uninsured drivers have to do a lot of work when they settle a claim with the other driver’s insurance provider. While an insured driver won’t have to do much at all.

This is another example of your comprehensive insurance policy working for you.

Insurers rely on evidence including photos, dashcam footage, independent eyewitness accounts, physical proof, the Australian Road Rules and police reports to determine who caused a car accident.

Figuring out who’s to blame can be straightforward. If someone rear ends your car, for example, they generally will be deemed to be at fault.

In other scenarios, the at fault driver is less obvious and sometimes may contribute to more than one driver being in the wrong.

Less common scenarios are ‘inevitable accidents’, in which drivers lose control of their vehicle due to medical reasons such as a heart attack or a hypoglycaemic blackout.

Regardless of blame, if the damage to your car and the other person’s car is only minor, it’s up to both of you to decide whether to lodge a claim with your insurers.

If you are involved in a no fault car accident and make a claim, then you do not have to pay any excess (provided we decide the other driver was entirely at fault and we can obtain the at fault driver’s full name, residential address, and vehicle registration number). 

If you are unsure about claiming you can contact us directly and we’ll help you make an informed decision.

Sometimes two (or more) parties can share responsibility for a car accident.

Determining the extent of ‘contributory negligence’ is subjective and dependent on the evidence provided.

In these cases and assuming you have Comprehensive Car Insurance, we’ll negotiate with the third party’s insurer (or, if they’re uninsured, the third party themselves) to arrive at a mutually satisfactory percentage of fault split (such as a 50/50 split).

In the unlikely event that these negotiations fail and the matter goes to court, the percentage of fault split will be determined by a judge.

Unless you have No Claim Discount Protection (NCD), your no claim discount will be reduced on renewal of your policy. This is subject to NCD being a factor considered when determining the premium you pay.

That’s okay, accidents can happen. 

You can lodge your claim, pay the applicable excess or excesses, and we’ll settle the claim with the other party’s insurer (or if they’re uninsured, then the other party).

Unless you have No Claim Discount Protection (NCD), your no claim discount will be reduced on renewal of your policy. This is subject to NCD being a factor considered when determining the premium you pay.

When you report the incident to us, we’ll arrange for your car’s damage to be assessed.

On acceptance of your claim, we’ll authorise the repairs or pay you a cash settlement.

Throughout the claims settlement process, you can expect to receive the same level of service we give our own customers.

Yes, as long as you are eligible for a hire car, we’ll arrange a hire car or reimburse you for the cost of hiring a car for the time it will take to repair your car or settle your claim, up to your policy's specific hire car limit.

You'll need to make transport arrangements to collect and return the hire car.

If there’s a dispute over who caused the accident, we may ask you for some more details about what happened.

We will, on your behalf, try to resolve the dispute with the third party’s insurer (or the third party themselves). But if the other driver's insurer refuses to comply, you are entitled to take further action.

Most contested claims are settled out of court. In the unlikely event a customer’s claim goes to court, we may ask them to testify (we’ll pay the court costs).

If you are dissatisfied with our final decision, you can complain to the Australian Financial Complaints Authority (AFCA).

In an example where you and another driver reverse into each other in a car park, you both may agree not to claim because the damage would cost less than your excess to fix.

However, this may not be the end of the story and the other party may lodge a claim for damages.

If this happens to you and the other party sends you a letter of demand or you receive a court issued statement of claim, you can contact us immediately and we’ll handle it for you.

You will still need to lodge a claim and pay any applicable excesses in this case.

If the at fault driver is uninsured, we’ll pay your repair and other costs (such as towing and a rental car) and then try to recover them from the other party depending on your level of cover.

In other words, you won’t be disadvantaged by the other driver’s lack of cover.

If you’re injured in an accident that was not your fault, you or your ‘legal personal representative’ (such as the next of kin in the case of death) can claim compensation from the at-fault driver’s compulsory third party (CTP) insurer.

With Budget Direct, regardless of whether you’re at fault in a motor vehicle accident your Comprehensive Car Insurance policy can cover the cost of the following depending on the situation:

• Repairing damage
• Replacing your vehicle
• Paying out the market or agreed value of your vehicle if it’s a total loss.

You can make a claim using our Car Claims Helper and/or by logging into your online policy manager.

If we accept your claim for a no fault car accident you'll be eligible for a hire car provided we decide the other driver was entirely at fault and we can obtain the at fault driver’s full name, residential address, and vehicle registration number.

And if your car is unsafe to drive following an accident, we will pay the cost of recovery, towing and storing your car at the closest repairer or storage facility.