At Fault Minor Car Accident - (Insured) Other Party Claiming $28k

Hey guys first off, I know this isn't legal advice etc.. but just wondering if anyone can lead me to the right direction.

My mother got into a car accident last August, she lightly crashed/scratched into the back of someone bumper, nothing serious, everyone is fine. I can't find the accident photos of the other car….

Scenario: Mother was waiting to turn right at an intersection, giving way to oncoming traffic. She misread her distance and slightly bumped and scratched the incoming car's back bumper.

Drawing of accident

Here is the photo of my mother's driver side, as you can see it's a very light scratch, not even cracked and no dents. The bumper is still in-tact, nothing to cry over.
Pic 1
Pic 2
Pic 3

Both parties exchanged details, mother put in a claim a few days later with her insurance, car is insured under third party, some gentleman called my mother from the other driver's insurance, she gave the claim number. No communication from anyone since then.

Today she got a letter in the mail from the plaintiff, 'statement of claim', from court: 'local court of NSW' and wishing to claim $28k worth of items. For example, the defendant claims they needed to hire a car for $450 a day for 48 days.

She forgot all about the accident assuming it's all taken care of until she got the letter today, told her to call insurance ASAP and get an update.

To me it was a simple insurance claim, typical scenario of person A hit person b, no one injured. My mother can't find the pictures of her car but the scratches on her back bumper did NOT dent, crack or even displace the bumper, it was light scratches as well, most likely needed to be scuffed out and repainted…..

Few notes:

  1. The other driver only sent their DL photo to my mother
  2. Police was not called to the scene
  3. The other driver drove off, no tow truck was called
  4. My mother said she took at least 6 pictures of the other car but I can't find them in her phone :( But she said the damage on the other car was scratches only.

My POV:

  1. I honestly don't understand the legal proceedings wanting to claim $28k worth of items from my mother, especially when their car had light scratches like my mother's car.
  2. I don't understand the defendant needed a hire car for 48 days? Especially at $450 per day, when her car was perfectly fine at the scene and she drove off.
  3. Speculation and assumption: Insurance would have all the details of repair and if they needed to get a hire car. But that's information for later on when my mother calls insurance to get all the details.

I would like to get other people's perspective.

Next steps: Told my mother to call insurance on an update and tell them about the letter.

Edit: Told my mother to speak with insurance and tell them about the letter, and they can deal with it.

Edit 2: it's with insurance now, they're looking into it

Comments

    • +2

      Yes these companies take advantage of the situation, give the not at fault party an OK time but can ruin the lives of other people at fault if they don't have insurance by charging what I would imagine is an egregious amount for hire cars to the at fault party.

      Basically what happens in these situations:

      If you're at fault/clear person at fault, Right 2 Drive tells the not at fault driver they can get a free rental car and they will take care of the rest.
      R2D gives them a hire car, and then follows up the charges with ther at fault persons insurance/or the at fault person.

      They charge some ridiculous rate it seems multitudes more than what it would normally cost for a hire car.

      Whenever there is an accident though, all legal documents are required to be forwarded to the at fault party (if insurance company details are unavailable) and then all you need to do if you have comprehensive is just forward the document to your insurance. It's purely a formality as your insurance company represents you, but they aren't the entity that was in the accident so the mail needs to be served on the person driving. This can be quite stressful for some people.

      The situation is worse if the person doesn't have insurance and they end up getting served with a huge rental car bill.

      Or what I would imagine sometimes what would happen is the customer who hires R2D ends up being dragged through court if the other party challenges the bill/accident and then they need to go to court to serve as a witness.

      It is a terrible business practice IMO and lucky our legal system isn't worse like in america.

      Normally the insurance companies will either litigate against R2D or settle out of court.

      There appear to be a few of these companies popping up now and I don't know how they can get such a high rating on productreview - you know something is fishy when that happens. I guess the people getting sued by R2D without insurance are probably few and don't know better but to post a negative experience online or probably have been served with legal documents not to comment.

      • But seriously, it’s also the not-at-fault driver to be blamed as well.

        Let’s say they don’t have insurance, they can still get a hire car through the insurance company of the at fault driver. I am not sure why there are people who would engage R2D regardless of what the situation is.

        They think ignorance is costing them nothing and we all know that’s not true ( at least in the long run).

        People, just negotiate in good faith.

        • advertising and people are stupid.

          people are unaware they can get a hire car through their own insurance because their own insurance gives them the option to pay extra in the premium for a rental car in the renewal. though their insurance company does ask the not at fault driver if they want a hire car but thats not always the case depending whether the claim is handled online or over the phone.

        • My friend's wife was in a not at fault incident, dropped the car off at the smash repairers and after confirming the other party was insured, they were the ones to push R2D on her.
          Obviously a cheeky kickback/referral scheme exists.

    • +1

      I think I dealt with this mob or similar at the beginning of the year. Someone rear ended me and the car hire mob showed up with the tow truck for a replacement car - other party had NRMA comprehensive.

      Car was shite - non working reversing camera and had a quarter tank that I was expected to fill.

      Fortunately for me I was able to borrow a work car for the duration so I drove the car there. But this mob wanted me to sign my life away - from memory they wanted credit card details. Work's advice was to tell them to get stuffed.

  • -4

    We had an Indian pretend that we hit their shitbox.
    They thought they were going to get like $5k from us, reported it to the cops.
    We didn't even park near them.
    lol.

  • -4

    she hit an Audi depending on the model $450/day might be completely reasonable for a similar replacement hire car.

    • +3

      It will be interesting to see what the insurance company thinks of this “reasonable charge”.

      • They don't think it's reasonable that's why they didn't pay and R2D lodged court proceedings.

    • +2

      its a 2010 Aldi. Unless its a R8 its worth $30,000 at the most.

      • -1

        that is assuming the op mum assumption it looks like a 2010 model is correct I think a 70 series land cruiser looks like it is from the 1980s does not mean it isn't brand new

        If they are driving an a8 or an r8 or something similar they are fully entitled to hire something in that class and $450 a day may not be unreasonable

        • they are fully entitled

          Maybe in their own mind, but this is reality. Snowflakes can make do with a normal car.

  • +1

    Lots of company that specialise on hire car for accident claim, they have crazy daily rate. I am insured and got rear ended. When I went to smash repair, the owner suggested me to use this car hire, promising will give a nice car, even though my insurer does give me $50 a day allowance for car hire with Avis for 14 days max. I almost agreed to it but when I was about to sign, the car hire from smash repair charges $250 a day! He said don't worry because they wouldnt ended up charging that much due to negotiatio etc. But I couldn't in my conscience did that so I declined. I ended up going with avis and got camry for $50 a day.

  • +2

    Went their similar issue with a family member and Compass Claims. These companies use shakedown tactic to extract money. The insurance doesn't budge until court documents are lodged that's why your mother received them. It's like how social house don't provide house until eviction but that eviction process costs landlords lots of money.

  • +6

    Seems like the other party went through that scummy right to drive company.. so they're gonna get stung for it in the end.

    "My car has a scratch on it so I need a premium rental car for 48 days and someone else is going to pay for it" doesn't really stand up in court (especially when the rental costs more than a new car would've…).

    The real loser here are insurance company customers, because these ridiculous claims increase the insurer's legal overheads.

  • Surely if she did take photos they would have been forwarded to the insurance company. Try them.

  • Does last august mean august 2024 or 2023?

  • TLTR: My 2012 Subaru XV with light damage to the front has costed the other uninsured party ~$15,000…. I bought it for $3500…. but insured for $14,000.

    If your mum has 3rd party property car insurance then she is sweet. Just forward the letter/email received to them and leave it at that… no further communication with where that email came from.

    In terms of cost, that stuff can really explode and get out of hand real quick. I have a 2012 Subaru XV that lightly crashed into the side of someone pulling out. I bought it for $3500… insured for $14,000.

    The damage included the hood, front bumper, front absorber bar, new headlight… It wasn't too bad tbh.

    Cost to the insurance:

    1. The repair quote from the insurance's partnered shop came to $7000.

    2. Towing and Uber both ways was ~$700? (didn't let me drive drive cause it was making rubbing noises).

    3. Car rental for a Hybrid Camry was about ~$550 a week for 3.5 months. (waiting about 3 weeks for it to even get a tow organised…)

    All up, it would have costed ~$15,341 all up to the other guy. They didn't write off my car cause they don't count the towing/car rental cost into the equation.

    • Out of interest, how much was the premium and excess you were paying for the XV?

      • I'm with Shannons and paid an annual $1,334.40 for a 2012 Subaru XV @$14,000 agreed value. My excess would have been $2,495 as I was under 25 and not listed on the policy.

        Luckily I got the other guy's details + and my dashcam footage to prove me innocent. Thus, I was not out of pocket at all.

        PS. I also have another vehicle insured by Shannons so they gave me a small discount.

  • scam let her people deal with it.

  • Oh, the usual vultures. As much as I hate them, they forced the insurers to lift their game.

    I got hit twice in the last 3 years, and they've always supplied a car without fail. It's a shittonne cheaper to get a proper rental than the R2D etc vultures.

    Only if the insurance companies didn't fk around in the first place, otherwise these vultures wouldn't exist.

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