Car accidents can be stressful and overwhelming, but the situation can become even more complicated if you find yourself involved in an incident without car insurance. Accidents happen unexpectedly, and being uninsured can leave you vulnerable to financial liabilities and legal consequences. Understanding the implications of driving without insurance is crucial to protect yourself and others on the road.
At Savvy, we understand the importance of being informed about what happens if you have an accident without car insurance. You can learn more about what happens and what to do if you find yourself in an accident without appropriate cover, whether you’re at fault or not, in our comprehensive guide.
If you get into an accident without car insurance in Australia, you’ll be personally liable for any damage caused during the accident if you’re deemed to be at fault. In this case, you would be legally compelled to have to pay for repairs and other associated expenses for any other vehicles involved (in addition to your own) out of pocket.
These costs could be significant, as they may involve not only the repair of the other driver’s vehicle but also other costs such as towing fees from the scene of the accident and covering the cost of a rental car while their vehicle is being repaired.
However, if you’re in an accident and don’t have insurance, it’s worth determining with the other driver who is at fault. If you settle on the fact that both parties are partially at fault, you may be able to come to an agreement with the other driver to each cover your own costs or pay for half of each other’s costs (if liability is 50/50).
Having adequate car insurance coverage in this situation would mean that you’d only be required to pay an excess to cover all the damage to the other vehicle (provided the accident qualifies for coverage with your insurer).
If you're involved in a car accident in Australia where you aren’t at fault but don't have car insurance, there are several steps you should take:
It's important to note that while not having car insurance can complicate the situation, you still have rights and options to pursue compensation for damages if you aren’t at fault. Seeking legal advice can provide valuable guidance and support throughout the process.
Provided the accident qualifies for coverage, you can be covered by your comprehensive car insurance policy if another driver is deemed to be at fault for an accident but doesn’t have insurance. In this situation, you typically wouldn’t be required to pay an excess if you’re able to make a claim and provide your insurer with the other driver’s details, as they’ll pursue the at-fault party for payment.
If you have a third party insurance policy, such as third party property damage (TPPD) or third party fire and theft (TPFT), your insurance won’t cover damage to your vehicle in an accident. However, if the other driver is at fault, they’re still liable to pay for the repair or replacement of your vehicle. You’ll need to negotiate with them yourself and, if they refuse to pay, may be required to seek legal advice as to whether to pursue the matter in court.
No – it isn’t legal to drive without any car insurance in Australia. All registered vehicles in Australia are required by law to have compulsory third party (CTP) insurance, also known as a Green Slip in New South Wales, which can cover personal injury claims arising from accidents.
It isn’t a legal requirement, but is highly recommended by industry experts, to also have comprehensive or third party car insurance, which can cover damages to your vehicle and potential liability for damages to other vehicles or property (depending on the type of policy you take out).
Having appropriate insurance coverage on the road can bring you much greater peace of mind that you can be covered in the event of an accident, regardless of whether you’re at fault or not. If you’re in the market for a policy, you can compare instant quotes side-by-side in one place through Savvy’s online comparison service.
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Savvy’s comparison service includes selected products from a panel of trusted insurers and does not compare all products in the market. Any advice presented above or on other pages is general in nature and doesn’t consider your personal or business objectives, needs or finances. It’s always important to consider whether advice is suitable for you before purchasing an insurance policy. We always recommend readers to consult the Product Disclosure Statement (PDS) of different policies before purchasing your car insurance.