Opinion

Car insurance woes

I'm often surprised by how civilised drivers are as they come together after a bingle. They have a look at the damage, write down each other's licence and insurance details, and off they go. These are accidents that do not involve injury or the need for towing and thus do not warrant police attendance. But it's not always civilised, and I've seen a few humdingers in Sydney especially involving on one side at least people of an excitable nature. In these cases I would not be comfortable about giving my identifying details to these ranting, arm-waving drivers, and a fellow I know in the insurance industry tells me that an increasing number of people are not giving ID to the other driver. Instead they're giving their details to the police, and they're entitled to do that under NSW Road Rules.

But there's a problem, apparently. Police, so my insurance contact says, are sometimes refusing to pass on the driver's name and address because, they say, of privacy provisions! Without the name and address of an at-fault driver, the not-at-fault driver is held by his or her insurance company to be at fault and thus liable to pay an excess and for a reduction in their no-claim bonus.

I faced a similar impasse a few years ago when a driver charged through a stop sign and crashed into my wife's car being driven by a P-plater daughter. The at-fault driver didn't stop but witnesses gave police his car's rego number, and while police were unable to find the driver they had his name and address. Police, though, would not disclose that name and address, citing privacy, and so we were held responsible by our insurance company for the $2000 P-plater excess. Eventually a senior police officer intervened and slipped the name and address to the insurance company, but I gather that was an uncommon concession.

It is a problem peculiar to vehicle insurance, and it is far from the only problem. Another, which I write about in my column in the Herald today, is insurance companies challenging not-at-fault but uninsured drivers to take them to court for the compensation. Insurance companies work it out among themselves readily, but when one side is an individual, not an insurance company, the going is not so smooth.

Have you had less than a fair go from a vehicle insurer?

Posted By: Jeff Corbett on 9/07/2010 5:00:00 AM | Comments (32)

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I had a frustrating situation a couple of months ago when the missus backed out of a parking space and had a slight come together with a similar car.Absolute minor plastic bumper damage and details were exchanged.We got in contact with the insurance company to find out what the estimate on other car was thinking i would pay cash to avoid $600 dollar excess but they would not release this info. So if i had to pay excess i may as well put my car in and get the little scratch out under the same excess bill.This entailed taking the car for assesment and leaving it with them until the job was complete about a week.I should have bought one of those paint sticks for $6 and touched it up myself.Lucky i,m with ****.

Posted by horse, 9/07/2010 8:50:41 AM, on The Herald

I have nothing but good things to say about my insurer. Even to the point of having everything i own now insured with the company regardless of the cost. I have had 2 claims in my time, both not my fault. Once, someone hit my car while parked. Not knowing who hit me, i contacted the insurere and alsto put a call to the police. The police must have put the 2 incidents together and passed the details of the at fault driver to my insurer. Not once did the insurer even indicate i was up for any excess. The 2nd was a guy went through a stop sign and hit me. The insurer put the car into a smash repairers, and the smash repairers chosen had a loan car they lent out to customers while their car was being fixed. I didn;t have the hire car option but didn;t need it cause the insurer chose the good smash repairer. :)

Posted by Nafe, 9/07/2010 9:31:05 AM, on The Herald

Which company are you with, Nafe? And did you read that Old Boy has you nailed?

Posted by Jeff Corbett on 9/07/2010 10:02:50 AM

Hi Jeff, I'm with AAMI, Very good and highly recomended. I have also read Old Boy's humourous expose on me, a little off the mark but am happy to assist him nail down exactly who i am. :)

Posted by Nafe (Nathan), 9/07/2010 10:22:22 AM, on The Herald

insurance companies? never liked them, never will, they are a bit like a vulture at a tibetan funeral. I dont drive any more, especially where I am at the moment.

Posted by sid, 9/07/2010 10:43:24 AM, on The Herald

NSW Motor Traffic Act Section 8 (4) Where, owing to the presence of a vehicle or horse upon a road or road related area, an accident occurs whereby damage to an extent apparently not in excess of fifty dollars, or where some other amount is prescribed such other amount, (now $500.00) is caused to any property (including an animal in charge of any person or a vehicle), the provisions of subsection (3) with the exception of paragraph (c) of that subsection shall apply to the driver or rider of every vehicle or horse concerned in the accident. (5) Any person who fails to comply with any provision of subsection (3) or subsection (4) or who wilfully furnishes any false or misleading particulars in respect of any matter pursuant to either of such subsections shall be guilty of an offence under this Act.

Posted by MizJasper, 9/07/2010 11:03:37 AM, on The Herald

What's your point, mizjasper?

Posted by Jeff Corbett on 9/07/2010 11:11:04 AM

jeff one of the car accidents I was a passenger involved three cars, (all male drivers). We were the last in a line of traffic stopped and waiting for a cup up front to turn. The car that hit us didn't even slow down, hit the brakes a split second before hitting us. That shunted us into the pristine 1960's citroen in front. That driver jumped out, and started abusing us and came close to throwing a punch till he realised we had been rearended. He had one of the bike racks on the back that he told us was there purely to protect the car and that he didn't ride bikes. Our car was written off by the insurer AAMI and I ended up with more money than the car was really worth. Which I guess was a good outcome. There didn't seem to be any issues, other than the initial aggression! I think too many people have been watching too many bad cops and robbers shows and think swagger and aggression is the norm. Hence not wanting to hand out private info. That was what annoyed me with the crazy stalker I had. He didn't actually know my name, but for me to get the restraining order it had to be listed on the paperwork. It actually made me feel more vulnerable.

Posted by leahkf, 9/07/2010 11:15:06 AM, on The Herald

That drivers are still obliged to swap particulars after an accident at the scene and if the Police wont supply them (due to Privacy- there's that bulldust phrase again) people can still apply to RTA - I think now for a 'fee' for the other drivers particulars. I cannot think of a reason why the Police wouldnt. In any case if there is a problem, go to a Police Station and report it and if need be, subpoena the record.

Posted by MizJasper, 9/07/2010 11:25:14 AM, on The Herald

I have had two experiences with car insurance claims, one bad and the other good. About 25 years ago I was rammed from the rear at a stop sign by a driver of an unregistered car.Whilst the driver stopped and got out of his car he then drove off from the scene. This car was actually carrying number plates with a rego that had expired some 14 year prior. The police told me I must have the wrong rego number, however some detective work on my part traced the last known owner as a car yard & they had sold the car to someone else and apparently had failed to transfer ownership to the new owner. When it came to claiming on my insurance company, even though I had at not at fault insurance I had to pay the excess because "I could not identify the driver of the other car". My second experience with the same insurance company was much better. Just two day before going overseas a car turned in front of me causing about $8000 worth of damage, my car was towed to a repair shop, I notified the insurance company over the phone, and on my return two weeks later my car had been repaired and was ready to pick up.

Posted by cardiffresident, 9/07/2010 11:37:42 AM, on The Herald

A female friend, who lives in Sydney, has had 2 instances where she has locked herself in her car & called police because she was in fear of being injured by the at fault drivers' who were refusing to accept that they were at fault & were acting in a violent manner when asked for their details. She was thankful that the police responded quickly.

Posted by tina, 9/07/2010 11:56:30 AM, on The Herald

MTA was repealed 30/11/1999??? Also, Jeff, I tend to disagree that driver is entitled to give details to police rather than the other driver. Road Rule 287 says a driver MUST stop and give details. I think the giving to police instead only applies where for some unforeseen reason you don't, but its not a choice situation in normal course and failure to do so would carry a penalty up to $2200 without justifiable cause. But if it does occur, it's interesting that police could then see a privacy issue with disclosing details that the driver is compelled by law to disclose. We hide too much behind privacy laws these days!

Posted by Grandog, 9/07/2010 12:19:24 PM, on The Herald

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