Not at Fault Accident: I'm TPP - at Fault Is Uninsured

urbancowboy511 on 03/12/2023 - 09:23
Last edited 04/12/2023 - 07:50 by 2 other users

Hi all, want to get your thoughts on below situation.

  • Got into a car accident, my car is a write-off
  • I am not at fault
  • I only have 3rd Party Insurance, at-fault is uninsured.
  • Lodged Claim with Insurance, max I can get is $5K (less towing, storage, etc.)
  • Car is $20K+ worth (lesson learned, get Comprehensive next time, so please don't get stuck on this)

Things I am thinking of doing.

  • Get a temporary hire car from Right2Drive
  • Chase the at-fault for gap. ($20K minus whatever the insurance will pay me)
  • If at-fault says they don't have money - get debt collector involved.

Any helpful comment / suggestion is much appreciated.

Thanks!

EDIT: Thanks to all the responses. Just so that I can help anyone reading this in the future that get stuck in this situation.

  • Consider Comprehensive Insurance next time!
  • Assess first if at-fault is cooperative to pay before insurance. Consider to settle if at-fault is willing to settle more than insurance comp (typically $5K for TPP).
  • If not willing to settle, get whatever is left of insurance compensation and move on.

Other realisation:
- Right2Drive not possible as they only cover for insured at-fault.
- Chasing the gap may not be possible once you already claimed with insurance.

Automotive

Comments

            • Euphemistic on 04/12/2023 - 14:16

              @gyrex: Seems you live in a different world to the one I live in. I’ve known a couple of people that looked like they didn’t have two cents to rub together but were quite wealthy, but the majority of people I know with money (not stupid rich, but comfortable) most certainly don’t look the same as a houso.

              Anyway, you do you. I’d make a decision based on what I see wether it’s worth following up on or not - but then I have insurance and will never not have comprehensive on a car I cannot afford to lose tomorrow. I’m not gonna get into OPs position.

        • [Deactivated] on 05/12/2023 - 20:41

          Doubtful, most people worth that have a bit of self pride but you seem to want to write the narrative that bald fat blokes with 0 fashion sense are all secret millionaires for some reason.

    • Baysew on 04/12/2023 - 11:52
      -1

      Those telling you to take the $5K and walk away

      You don't get to double dip. Once you claim on insurance then it's over, you have assigned your rights to your insurance company. The insurance company will be the ones sending a letter of demand, court action, debt collection to try to recoup the money they have paid out to you on the claim.

      • gyrex on 04/12/2023 - 15:28
        +2

        You don't get to double dip

        True, you don't get to double dip but you're within your rights to also make a civil claim against the uninsured party for the difference between the insurance payout and the total loss suffered. ie. assume the Redbook value of the vehicle was $20K and your insurance company pays you $5K, there's nothing stopping you claiming the $15K damages you're short. You'd just be another creditor seeking damages against the uninsured party in addition to the insurance company.

        • trapper on 05/12/2023 - 13:38

          Also someone else pointed out that it is likely the money received from insurance comes with strings attached. They get repaid first from any money you do manage to recover, so in that case you sue for the entire amount.

    • gromit on 04/12/2023 - 23:22

      Once you claim insurance u dont get to add on the rest from a recovery. If they cough up $15k you have to pay back the $5k to insurance unless they also paid back insurance for u.

    • trapper on 05/12/2023 - 12:56

      I'd send the at fault party a letter of demand for the difference between what the insurance payout is and the market value of the car. If they don't respond or tell you they don't have the money, then take them to small claims court and represent yourself. It doesn't cost much and if you dedicate a few hours to compiling a case and arguments, you'll be fine. The court can make an order against them

      Yes do exactly this. You can also add the court filing costs to your claim so he will end up paying that too.

      Even if the guy is truly broke and manages to convince the court he can't afford to pay, you will still get the money, just a little slower… $100pw for 3 years is better than nothing.

  • Aust on 04/12/2023 - 21:52

    Its not a case of taking the $5,000 ish and see you later. You need to ask the insurer to include your loss in their recovery action,
    As the claim is far less than the vehicle value I am guessing the salvage will be your responsibility also. Check with the insurer.
    When you do you can you get the wreck and get some quotes from wreckers for selling this.
    And i hope its not in a storage facility as your racking up costs daily. get it moved asap to your home or a mates asap.

  • ceroau on 05/12/2023 - 08:39
    -1

    Car is $20K+ worth (lesson learned, get Comprehensive next time, so please don't get stuck on this)

    But this is exactly what you should get stuck on. You don’t have comprehensive insurance which was a dumb ass move you claimed you’ve learned the lesson but here you are seeking advice at how to avoid the consequences of your dumb ass move. If you had learned your lessons you’d take the money you can get from the insurer and move on you wouldn’t have needed the post.

  • Davo1111 on 05/12/2023 - 08:49

    Take them to court for 20k.

  • TightAl on 05/12/2023 - 09:11

    Member Since
    14/06/2015

    There's literally a post every second week about no insurance/TPP. Enjoy the process, you're savings will now be used chasing :)

  • ItchyBallsack on 05/12/2023 - 09:47

    How bad is the damage to your car? And if u accept the $5k will the insurer list your car on the written off register? If not try to shop around and find a repairer who can fix it for cheap. Magic word is private cash job.

  • unwashed00 on 05/12/2023 - 10:01
    +2

    May I ask what was the premium difference between TPP and comprehensive? One of my cars was only worth a couple of grand so I was thinking of only getting TPP, but comprehensive was more expensive by like $5 per months, so I went with it.

  • pipe on 05/12/2023 - 10:37
    -2

    Here comes all the bitter people who have spent $10k in comprehensive insurance premiums paying for other people's claims and enriching insurance executives.
    Berating others for not doing the same.

    • gyrex on 05/12/2023 - 11:46
      +2

      Yeh, it's best not to get comprehensive insurance and have to go through the rigamarole that the OP is going through or even better, potentially lose an expensive asset if you're in an at-fault collision.

    • gromit on 07/12/2023 - 19:42

      Why would they be bitter for not ending up in the OP's situation and hence have saved themselves a lot of money, inconvenience and stress. If you can afford to self insure then great, most people are not that wealthy.

  • lonewolf on 05/12/2023 - 11:19

    How can you have a 20k+ car without comprehensive. I have comprehensive on my 3-4k car just for peace of mind.

  • mactos on 05/12/2023 - 12:21
    +3

    I wouldn't just walk away and let them get away with destroying your car.
    There should be repercussions for them driving uninsured.
    Take them to court.

    • kaleidoscope on 05/12/2023 - 12:50

      100%

      as per OP the other fellow may cause them troubles down the line. If it was, claim everything on insurance on move on sort of matter, would have been a different story.

      I will try. However my thoughts below.
      Personally chasing after a bogan who is not going to pay anyway is taxing, frustrating, and may put my life in danger.

  • trapper on 05/12/2023 - 13:07

    Consider Comprehensive Insurance next time!

    Yes.

    Assess first if at-fault is cooperative to pay before insurance. Consider to settle if at-fault is willing to settle more than insurance comp (typically $5K for TPP).
    If not willing to settle, get whatever is left of insurance compensation and move on.

    What? No. Take the $5k from your insurance and take the guy to small claims for the balance. Your insurance will also be taking him to court to recover their $5k.

    Right2Drive not possible as they only cover for insured at-fault.

    This is only because they don't want to be stuck chasing this guy to pay when he is uninsured. You still have a right to recover your reasonable costs so can get a rental while your car is being repaired/replaced if you need. You will just need to pay for it yourself and then include those costs in your claim when you sue this guy.

    Chasing the gap may not be possible once you already claimed with insurance.

    No, of course you can sue for the gap. The court isn't going to order him to pay more than your actual loss, so the $5k you are entitled to from your insurance will just be subtracted off the grand total.

    • gromit on 05/12/2023 - 13:12
      +1

      What? No. Take the $5k from your insurance and take the guy to small claims for the balance. Your insurance will also be taking him to court to recover their $5k.

      when you settle where the insurance has coughed up, the insurance is the first claimant on that money. My sister went through that a few years ago, Insurance had to be paid back against any court or out of court settlement.

      • trapper on 05/12/2023 - 13:16

        In that case you sue for the full amount.

        • gromit on 05/12/2023 - 18:21

          Exactly

  • Assburg on 05/12/2023 - 16:55

    OP,

    You are genuinely good to go to the at fault party's property and just take 20k worth of their crap, and sell it on marketplace.

    Speak to a cool lawyer first, for your own peace of mind.

    • SpainKing on 05/12/2023 - 17:12

      Any recommendations on a 'cool lawyer'?

      • Euphemistic on 05/12/2023 - 19:02
        +2

        Rides a Harley. Wears a leather jacket with a cool logo on the back. Often says Nomads or Hells Angels on the logo.

      • Assburg on 05/12/2023 - 20:11
        +1

        Sadly few and far between but criminal theft requires a proven element of dishonesty/intending to steal, so if you think you're rightfully entitled to the money from the debt you're not going to be criminally liable.

        In terms of trespass against goods, there are a few cases getting about which give you a defence. The first was an armed hold up for money owed, the robber was found not liable (though the modern courts have been reluctant to consider violence in debt collection acceptable). There are quite a few more, it's the premise of all debt collection…and guess what, if you won't get anything out of suing them, they can't afford to sue you anyway..

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