Suppose you have been physically or psychologically injured in a road or car accident when someone else was driving your car. In that case, compensation claim eligibility depends on who was at fault. All road users have compulsory third-party insurance, which means you can make a personal injury claim against a CTP insurance policy when a passenger or another person crashes your vehicle, and they are the at-fault party. But CTP insurance does not cover repair costs.
Splatt Lawyers offers a free case review that explains your legal rights for car insurance claims when a family member or friend crashes your car. All our legal services are 100% no-win, no-fee. Call 1800 700 125
How Do I Know Who Was Negligent When My Car Was Damaged?
If someone receives a traffic infringement notice for the collision that damaged your car, they will likely be the negligent driver. You should also take note of whether someone apologises for the accident. Saying sorry is another way of admitting liability.
The circumstances of an accident will help determine who is liable. You can read more about determining who is at fault in a car accident here.
What If a Friend or Family Member Crashed My Car?
If a friend or family member were driving your car when involved in a motor vehicle accident, they could not make an injury claim against you or themselves if they were the at-fault driver. However, if the other car’s driver was negligent and occupants of your vehicle were injured, you could have the right to claim against the CTP insurer of the at-fault driver.
The circumstances of an accident will help determine who is liable. In an at-fault driver situation, where someone other than the vehicle owner is responsible for the accident, liability and insurance claims may be influenced by who was driving and their degree of responsibility.
About Contributory Negligence
A compensation payment will be reduced if your friend or a family member has contributory negligence. In this case, they will be awarded a percentage contribution for the road accident if they have partial fault for the collision and the injuries.
• For example, if you were not wearing a seatbelt during a motor vehicle accident, you could have a 25% liability contribution.
• When a friend or family member is prosecuted for drunk or drugged driving, they could be awarded a 50% negligence contribution, regardless of your awareness of their condition at the time.
Will Insurance Cover Car Accident if Someone Else Driving?
When someone else is behind the wheel of your car and a car accident occurs, your insurance coverage will depend on several important factors, including:
- The type of car insurance policy you hold
- And who is determined to be at fault
Comprehensive insurance: your policy may cover damage to your own car, as well as other vehicles or property involved in the motor vehicle accident, regardless of whether you or someone else was driving.
Third-party insurance: generally only covers damage to other vehicles or property, not your own car.
Read your car insurance policy to understand exactly what your insurance covers in these situations.
For example, if the other driver is at fault, you may not have to pay an excess, but this depends on your insurer’s terms. Some insurance companies, such as NRMA Insurance, may waive the excess if you provide sufficient contact details for the other party involved in the accident.
• If a friend or family member is driving your car, it’s best to have them listed on your policy to avoid additional excesses or claim denials.
• Unlisted drivers can attract higher excesses or even result in your claim being rejected, depending on your insurer’s rules.
How Comprehensive Insurance Affects an Insurance Claim
When someone else crashes your car in Australia, it’s crucial to understand how your car insurance policy affects liability. Often, comprehensive insurance covers vehicle damage, but various factors determine if coverage applies, such as:
• Whether the driver is unlisted
• Or considered a secondary driver
Auto insurance typically covers damages to your vehicle, but the specifics can vary based on the policy and the driver’s status. While third-party insurance (CTP) covers damage to other vehicles and injuries, it doesn’t extend to cover damage to your own car. Hence, having a robust auto insurance policy can prevent unexpected financial burdens in such situations.
For example, if a friend crashes your car without being listed in your policy, or if they’re a younger driver, some insurers may apply an additional excess. Reviewing your policy terms regarding unlisted drivers and setting clear guidelines for borrowing can prevent costly mistakes. Furthermore, a comprehensive insurance policy can include options like a replacement vehicle when your own car becomes unusable, which can save you money following a motor vehicle accident.
What if The Other Vehicle is a Hire Car?
When the other vehicle involved in an accident is a rental car, the situation gets more complicated. Most of the time, the rental company insures the rental cars with their own insurance policies, which usually include complete coverage. But the way liability and claims work may differ based on the specifics of the accident and the terms of the rental agreement.
In a lot of cases, the rental company’s insurance will pay for damage caused by their hire car drivers, but you may still need to work closely with your own insurance company to get the claim process started. Also, their insurance should pay for your repairs and any other damage from at-fault accidents caused by their drivers.
If you have full coverage insurance, your policy may cover damage caused by rental cars, but this depends on the insurer’s terms and conditions. If you only have third-party insurance, it might only cover damage to other people’s cars or property. In that case, you might have to go through the hiring company’s insurance to claim compensation.
In any case, thoroughly documenting the accident with photos, witness statements, and detailed repair estimates will help expedite the claims process and ensure you receive fair compensation.
What if an Unlicensed Driver Crashes My Car?
If you let someone drive your car without a licence, you could face serious legal and financial problems because most policies don’t cover accidents that happen when the driver doesn’t have a valid licence. Therefore, if an unlicensed driver crashes your car, the insurance company will probably deny the claim, which means you’ll have to pay for all the repairs and any damage to other cars or property.
• There are also fines and other legal penalties for breaking Australian road safety laws.
• You may be more responsible if the unlicensed driver hurts themselves or someone else because compulsory third party (CTP) insurance only covers injuries caused by licensed drivers.
• If an unlicensed driver crashes into your car, you should call your insurance company right away and get legal advice to learn about your options.
Legal Responsibility: Are You Liable?
You must understand legal liability when others are driving your car. That’s because you can be held financially responsible for property damage caused by an unlisted driver. The insurer might deny your claim if the person is found to be the at-fault driver or engaged in non-permissive use (e.g., using the vehicle without explicit permission). Additionally, accidents involving intoxication or suspended licences typically result in claim denial by an insurance company.
If you allow a family member or friend to borrow your car and are involved in an accident, ensure they are covered under your car insurance policy. If there is an accident, obtaining detailed information about the other driver is required to make an insurance claim.
In at-fault accidents where the driver was negligent, they might also face legal consequences for the financial implications. For example, if a friend drives while under the influence and crashes your car, they would be liable and could face severe penalties, including heavy fines or prosecution.
How to Minimise Financial Risks in a Car Accident
To minimise these risks, regularly update your insurance policy to reflect regular drivers and consider adding secondary coverage to extend protection to occasional users. When someone else borrows your car:
- Clarify the circumstances under which they are allowed to drive
- And assess their qualifications or driving history
Doing this could avoid hefty repair bills, higher premiums, or outright claim rejections.
If an accident does happen, contact your insurer immediately and provide details such as photos, witness statements, and the at-fault driver’s information. With these details, the insurance claim process will be smoother, and you’ll have a clearer idea of the compensation you can expect based on your policy coverage.
Legal Advice When Someone Crashes Your Car.
When someone else causes damage to your vehicle in an accident, you may consider taking legal action. If you have been physically or mentally harmed, the claim is against an insurance company, not your loved one.
Understanding who is liable and what to do next can be challenging. Our accident lawyers can explain your legal options during a free case review. Call 1800 700 125.
Someone Else Crashed My Car FAQs
If someone else crashes my car, is it covered by my insurance?
It depends on what your car insurance policy offers. Your insurance may cover drivers who crash your car if you have comprehensive car insurance, but it depends on the driver and policy terms.
If the person driving your car is not a permissive use driver, your insurer might require you to pay an additional excess or might not cover it at all. Always check your insurance policy to confirm coverage.
Am I liable if someone else crashes my car?
If someone else causes an accident while driving your car, you might still bear some financial or legal responsibility, depending on your insurance coverage and whether the driver was authorised to use your vehicle. Your insurer may have limited coverage for non-permissive use or if the driver violated policy terms (e.g., intoxicated driving).
What if someone else crashes my car without permission?
It is considered a non-permissive use when someone takes and crashes your car without permission. In such cases, your insurance company might deny the claim, and you may need to pursue legal action against the unauthorised driver to cover the costs. Your auto insurance policy terms should specify how non-permissive use is handled.
What if a friend crashes my car and is at fault?
If your friend is the at-fault driver in a car crash, they cannot make an insurance claim against your CTP insurance for their injuries. However, if another motorist is found negligent, you may claim against the other party’s insurer for property damage and injuries to passengers in your car.
Do I need to add additional drivers to my auto insurance policy?
Yes, adding regular drivers to your policy is recommended, especially for younger drivers or anyone who frequently drives your vehicle. This can help avoid an additional excess or outright claim rejection. Policies often have specific requirements for covering other drivers, including listing them explicitly or paying a higher premium.