Insurance claim - does the insurer claim excess from 3rd party at fault driver?

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Kyanar

4089 posts

Uber Geek

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#3051215 17-Mar-2023 14:47

When you claim on your insurance, your insurance company doesn't go after their insurance company, it goes after the other party for the full amount. If they pass on the demand to their insurance company, subject to the limits of their policy, it will substitute itself as respondent and charge them an excess regardless of whether they have to pay your insurer under a knock-for-knock agreement.

You cannot control whether your insurer pursues damages as once you make the claim you subrogate your rights, and they have the right to act as you in court.

MikeAqua

7785 posts

Uber Geek

#3051251 17-Mar-2023 16:10

Kyanar:

You cannot control whether your insurer pursues damages as once you make the claim you subrogate your rights, and they have the right to act as you in court.

This can really suck when both parties are insured by the same insurer. As they subrogate both parties and unilaterally decide who is at fault. And when they can trigger two excesses, they may decide fault is shared, regardless of facts. I had to lodge a dispute against my old insurer in a situation like this. My car was legally parked in marked space and they tried to argue fault was shared and therefore an excess applied to me. They eventually backed down, rather than take it to the ombudsman.

Mike

DimasikTurbo

89 posts

Master Geek

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#3051260 17-Mar-2023 17:01

Afaik 3rd party is exactly for this kind of situations and party at fault will have to pay his own excess (not yours). 3rd party insurance protects you as a driver in the situtaion when you are at fault and have to cover the repair cost of the other car. If there is an excess on the policy and the cost of repair is higher you pay only excess the rest is covered by the insurance company (up to a limit if there is any). If you are on the road and hit expensive car, this type of insurance saves you from paying full cost of repair.

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