Insurance questions

netboy
Posts: 61
Joined: Wed Aug 10, 2011 12:24 am

Insurance questions

Postby netboy » Sat Aug 31, 2013 3:41 am

I was involved in a minor collision recently where the other driver is at fault (the other driver diverged into my marked lane from an adjacent lane as I was turning left at a signalised intersection).

The damage to my car is extremely minor in that I will be able to fix it myself for virtually no cost. The damage to the other vehicle was even more minor than mine - a mark on their rear passenger side bumper about two inches long.
Because I suspected that the other driver wasn't going to be honest about the circumstances, I made a statement at a Police station with my account of events after the crash - just to try and illustrate that I am being honest about what occurred (if it comes to that).

Both parties are insured comprehensively.
My issue is that the other party is (of course) claiming they are not at fault (I have started receiving phone calls from the other party's insurance representatives). What concerns me most is that I have a very large (over 2k) excess on my insurance policy (even though I know I am not at fault).

Questions:
- At what point of an insurance claim must the excess be paid - at the start when lodging, or at the end when an outcome is reached?
- If it is determined by the insurance companies or a Court that it will be a 50/50 apportionment, how does this work in relation to excesses paid?
- How does "EBO" (each bears own costs) work, and is it likely to occur in this instance?

Any information or advice would be appreciated.

Hardy
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Location: Melbourne Victoria
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Re: Insurance questions

Postby Hardy » Sat Aug 31, 2013 8:02 am

You pay your excess when you make a claim on your policy and you want the insurer to take over liability. Generally that is at the start. One way of handling it is to report the accident to your insurer but dont make a claim on your policy unless you get sued. Once you make pay your excess the insurer takes over everything and you wont recover your excess unless the insurer recovers 100% from the other side. Reporting car accidents to the police is rarely ever helpful and much more likely to be regretable, so unless someone has been injured or it is a hit and run you probably should not do it.

netboy
Posts: 61
Joined: Wed Aug 10, 2011 12:24 am

Re: Insurance questions

Postby netboy » Sat Aug 31, 2013 2:10 pm

Thanks Sean..do you know anything about this "each bears own" concept?

Hardy
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Posts: 8462
Joined: Thu Jan 01, 1970 10:00 am
Location: Melbourne Victoria
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Re: Insurance questions

Postby Hardy » Sat Aug 31, 2013 4:29 pm

It means each party agrees to pay their own legal costs.


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