Traffic Accident? |
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Alastair Harris
August 10, 2006
Traffic Accident Car Insurance
So you’ve had a traffic accident now what?
Firstly is everyone alright. Preservation of life is far more important than the damage to your precious car, so first get a proper perspective and make sure everyone is ok. If any one is injured call an ambulance immediately. Property can be replaced, people can’t.
If no ones injured then fulfil your lawful responsibilities. Exchange your details. The easiest way to do this is to swap licences and give them a phone number and who your insurance company is.
Do not admit liability. Don’t lose your head and say, “I’m sorry” or “its my fault”. Insurance companies don’t always deal in absolutes in car accidents and partial liabilities may exist at a traffic incident i.e. a 40%-60% split, 10%-90%, etc. You will not help by talking when the adrenalin is pumping and saying something that may not help later in court.
If you have comprehensive insurance breath easy. Your next step is to inform your insurance company either by phone or in person to complete their required paperwork. They may ask you to go to the police station. Why? Because its makes their job easier. Insurance companies pay to have access to traffic incident reports and if the Police do an investigation it saves them having to do their own and saves them money and possible unneccessary litigation with other insurance companies/parties. If the police determine who is at fault (liability) then the insurance companies don’t have to argue with each other about who should pay. Problem is if Police investigate an accident and your at fault you may also cop a ticket or court appearance and get a fine or lost of licence. So before you go down to the Police station, consider if it has to be reported. If the accident involves an injury, then you are required by law to report it within 48hrs. Also if a vehicle had to be towed or people failed to exchange details, Police may need to be involved, otherwise, if you don’t have to report it, save time and don’t.
Once you have made your insurance claim sit back and let your insurance deal with chasing the other party for the money. Or if you are at fault, pay the excess and let the your insurer deal with it. If the other party contacts you personally refer them to your insurer and tell them not to contact you again.
Now if you don’t have insurance you have a problem. If your not at fault you need to send a letter of demand to the other party for the costs of your repair. If they fail to respond then you need to go to the small claims court, pay a small service fee and set the matter to be heard before a Magistrate. You give your version of events and they give theirs and the Magistrate determines appropriate compensation. If they fail to pay the sheriff can seized property to force payment.
However there can be numerous problems with this. Firstly its time consuming, also if the other party is a dead beat there will be no money and likely never be any money so you will be out of pocket. If your at fault and you have no insurance then you can be liable for the other vehicle and have your future earnings garnish for years, poor you if you hit a Rolls Royce, say goodbye to your dream of home ownership.
LESSON:- always have car insurance – preferably comprehensive. Less stress, less hassle. If you cars worthless at least have third party insurance to cover you hitting someone else. Don't confuse the third party insurance or CTP on your car registration with normal third party. This only covers injuries to other persons you might cause, it doesn't cover damage to other vehicles and property.
(Whilst this is applicable to Qld, Australia, the general principles would apply to most countries. This article should not be interpreted as legal advice or expert insurance advice).
Original article at http://traffic-accident.blogspot.com