For information about dealing with your own insurance company, see:
Case study - Bob and Frank
Bob and Frank had a car accident that was Bob's fault. Frank has comprehensive car insurance, but Bob only has CTP. Frank made a claim on his comprehensive insurance policy to repair the damage to his car. Frank's insurance company then wrote to Bob and demanded that he pay $7,500.00 for the cost of repairs to Frank's car. They threatened to start legal proceedings. The insurance company is standing in the place of Frank to get money from Bob.
Bob must deal directly with Frank's insurance company, rather than with Frank.
Under the 'right of subrogation' an insurance company can take the place of any person that they insure and do whatever that person can do, such as make a claim in court.
A person who is insured for property damage and is not at fault in the accident may make a claim on their insurance to repair the damage to their car. The insurance company will then try and get back the cost of the repairs from the driver at fault.
Whether you were at fault or the other driver was at fault, it can be difficult to negotiate with the other driver's insurance company. Here are some tips to help you negotiate.
If the other driver was at fault and insured and you were uninsured, you will need to claim against the other driver's insurance company. If the insurance company refuses to pay for your damage you have some options:
The other driver's insurance company may start a court case against you. While the other driver's name will be on the court papers, the insurance company or their lawyers will run the case.
For more information, see
Being chased for money after a car accident?
Financial Counsellors' Association of NSW