fbpx

Whose Insurance Pays in a Multi-Car Accident?

Find out more about how to determine who pays for damage in a multi-car accident with Savvy in our helpful guide.

Written by 
Savvy Editorial Team
Savvy's content writing team are professionals with a wide and diverse range of industry experience and topic knowledge. We write across a broad spectrum of finance-related topics to provide our readers with informative resources to help them learn more about a certain area or enable them to decide on which product is best for their needs with careful comparison. Meet the team behind the operation here. Visit our authors page to meet Savvy's expert writing team, committed to delivering informative and engaging content to help you make informed financial decisions.
Our authors
, updated on February 16th, 2024       

Fact checked

At Savvy, we are committed to providing accurate information. Our content undergoes a rigorous process of fact-checking before it is published. Learn more about our editorial policy.

Car Insurance Banner - A multi-car accident in the middle of the road

Multi-car accidents can be chaotic and overwhelming, leaving everyone involved unsure of who is responsible for covering the damages. In Australia, determining which insurance policy pays in a multi-car accident depends on the specific circumstances and who was at fault. Let's explore the various scenarios and how insurance coverage comes into play in these situations.

Whose insurance company pays for damage in a multi-car accident?

In multi-car accidents, the first step is to determine fault or negligence. Car insurance companies and police may investigate the incident, gather evidence and interview witnesses to establish who caused the collision. There are two main outcomes when it comes to determining fault, as well as other factors to keep in mind during this process:

A single at-fault driver

If the investigation concludes that one driver was at fault for the multi-car accident, their insurance provider is responsible for paying for the damages to the other vehicles involved. This includes property damage and any other related costs. The at-fault driver's comprehensive coverage, third party fire and theft coverage or third party property damage coverage will typically come into play.

If they’re also at fault for injuries, the at-fault driver’s compulsory third party (CTP) insurance can also cover medical costs and compensation for these. What CTP insurance covers exactly will depend on where you live in Australia, so it’s important to double-check if you’re unsure.

Multiple at-fault drivers

However, it’s important to note that fault may be split among multiple drivers. Insurance companies may divide the liability percentages based on the evidence, with each driver's insurance covering the damages according to their assigned share of responsibility.

For example, in a situation where a car rear-ending another vehicle leads to a chain reaction of rear-ending, each car which rear-ended another would be considered at fault for the vehicle they directly damaged. In this case, the first car which was rear-ended wouldn’t be considered at fault.

Uninsured or underinsured drivers

If one of the drivers involved in the multi-car accident is uninsured, the situation becomes more complex, especially if they’re considered to be solely at fault. In such cases, the parties which aren’t at fault (or their insurers) can seek reimbursement directly from the uninsured driver. However, most insurance policies offer coverage for damage caused by an uninsured driver, though this is typically capped at $5,000.

Excess payments

Keep in mind that in multi-car accidents, each driver may have to pay an excess outlined in their insurance policy, even if they aren’t at fault. The excess is a predetermined amount the policyholder agrees to pay towards the claim and the insurance company covers the remaining costs. Whether you have to pay an excess may depend on the nature of the claim and your policy’s terms and conditions.

Documenting the accident

Regardless of the number of vehicles involved, it’s crucial to document the accident thoroughly. Take photos of the scene, obtain contact and insurance information from all drivers involved and gather witness statements and contact information if possible. Reporting the accident to the police and your insurance company promptly is essential to expedite the claims process.

Helpful guides on car insurance

Car Insurance Banner - Woman sitting on the couch with her dog buying car insurance on her laptop.

Buying Car Insurance

Find out more about the process of buying car insurance and what to look for. Looking to buy car insurance...

Compare car insurance policies with Compare the Market

Savvy is partnered with Compare the Market to help you compare a range of car insurance policies from a panel of trusted providers.

Explore car insurance options by make

Select your car make and find out how much it may cost to insure, read helpful guides and compare quotes.

Disclaimer:

Savvy (ABN 78 660 493 194, ACR 541 339) provides readers with a variety of car insurance policies to compare. Savvy earns a commission from our partnered insurers each time a customer buys a car insurance policy via our website. All purchases are conducted via our partners’ websites. The integrity of our comparison service is unaffected by our partnerships with those businesses and our effort remains to bring further brands that do not already use our comparison service onboard.

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.

Car Insurance Banner - A multi-car accident in the middle of the road

We'd love to chat, how can we help?

By clicking "Submit", you agree to be contacted by a Savvy Agency Owner and to receive communications from Savvy which you can unsubscribe from at any time. Read our Privacy Policy.