Have you ever been involved in a car accident that wasn't your fault, but still had to pay an excess on your insurance claim? This experience can be frustrating, but it's quite common.
In this blog post, we'll explain what an insurance excess is, how fault is determined after an accident, and when you may be able to recover your excess payment.
What Is Insurance Excess?
An insurance excess, sometimes called a deductible, is the amount you pay towards the cost of any claim on your policy. It's a predetermined amount set in your policy documents.
There are two main types of excess:
- Compulsory excess - This is a minimum excess amount required by your insurer. All policies will have this.
- Voluntary excess - You can choose a higher excess amount to lower your policy premiums.
The excess makes the policy more affordable by sharing some of the risk. It also prevents small claims being made. Most car insurance excesses range from $200 to $1200.
How Is Fault Determined After an Accident?
When you make an insurance claim after an accident, your insurer will investigate to determine who was at fault. They will consider:
- Police reports from the accident scene
- Statements from witnesses
- Dashcam or CCTV footage if available
- Location and extent of damage to the vehicles
- Statements given by the drivers
If it is clearly one driver's fault, they will be liable. However, sometimes accidents are caused by both parties or fault can't be established. In these cases, you may both have to pay your excesses.
When Can I Recover My Excess Payment?
If your insurer determines the other party was entirely at fault, you may be able to recover your excess payment through their insurer.
The conditions for recovering your excess include:
- The accident was completely the other driver's fault based on evidence.
- Their insurance company accepts liability for the accident.
- You provide all necessary documentation such as police reports and proof of excess payment.
The timeframe for recovery can take several weeks or even months in complex cases. Stay in touch with both insurers throughout the process.
5 Tips for Potential Excess Recovery
Follow these tips if you believe the accident wasn't your fault and want to recover your excess payment:
- Inform your insurer of intent to claim recovery from the liable party.
- Request a copy of the police report documenting details.
- Contact the other party's insurer once fault is determined.
- Keep paperwork showing proof of excess payment.
- Stay patient throughout the recovery process.
Paying an excess when the accident wasn't your fault can be upsetting. However, recovery is possible in clear cases of another party's liability. We hope this guide gives you a better understanding of how the claims and recovery process works.
Please share your thoughts or questions in the comments below!
Frequently Asked Questions on Insurance Excess Recovery
What documents do I need to recover my excess payment?
To start the recovery process, you'll need to provide copies of your insurance policy, proof of excess payment such as receipts, police reports documenting details of the accident, and any witness statements supporting your version of events. Your insurer will let you know if any other evidence is needed.
How long does it take to get my excess payment back?
The timeframe varies depending on the complexity of the case. For straightforward claims with clear evidence of fault, you may receive your recovered excess within 1-2 months. More disputed or complicated claims can take 3-6 months to fully resolve. Stay in regular contact with your insurer and the other party's insurer throughout the process.
Can I recover my excess if the accident was partly my fault?
Unfortunately you can't recover your excess if you share any portion of the blame for the accident. The other driver must be 100% at fault based on the evidence for you to claim back what you paid. Partial liability means each party covers their own excess costs.
What if the other driver doesn't have insurance?
Uninsured drivers cause many problems. If an uninsured driver is fully liable but can't pay your excess, you may be able to claim it through your own policy's uninsured driver coverage if you have it. Otherwise, you would have to take legal action to recover damages.
How much can I claim back for my insurance excess?
If eligible, you can recover the full amount of compulsory and voluntary excess that you paid when making your claim, up to the policy limits. Any voluntary excess chosen to reduce your premiums can be claimed. Additional expenses like car hire or repairs cannot be recovered through the excess process.
What happens if the insurer doesn't accept fault initially?
Insurers must conduct thorough investigations before accepting liability. If your recovery claim is initially denied but you strongly dispute it, continue gathering supporting evidence. An independent assessor may review disputed cases and provide a verdict if insurers can't agree. Don't give up if you believe the other party was at fault.
We hope these tips help you better understand the excess recovery process. Let us know if you have any other questions!
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