Do You Pay an Insurance Excess If Not at Fault?

Most people only look closely at their insurance excess after a crash, usually standing next to a dented car and wondering why they should pay anything when the other driver caused it. Here's what an excess is, when you're likely to pay it, and how the way you claim can change whether it comes into it at all.

What an insurance excess is

Your excess is the part of a claim you pay yourself. Moneysmart defines it simply as "the amount that you pay when you make a claim". The amount is set out in your policy, and it's one of the levers that sets your premium: choose a higher excess and the premium usually drops, choose a lower one and it usually rises.

Check your policy schedule for the exact figure. Some policies also add extra excesses in certain situations, for example when the driver isn't listed on the policy, so read the Product Disclosure Statement (PDS) rather than assuming there's only one number. Moneysmart also has practical tips on how to save money on car insurance. If the damage is minor, such as a scraped bumper or a car park dent, compare the excess with the cost of a bumper, dent or scratch repair before you decide to claim.

Do you pay the excess if the crash wasn't your fault?

If you claim on your own policy, the starting point is yes. Moneysmart's guide to claiming on your car insurance says you generally pay the excess "whether you're at fault or not", and that some policies waive it only in limited circumstances.

Those circumstances are written into the policy, so the detail matters. Moneysmart gives the example of a driver hit by someone in a stolen car who drove off. Her insurer still charged the excess, because her policy only waived it when the at-fault driver could be found. If you can identify the other driver and show they caused the crash, you're in a much stronger position to have it waived, refunded or not charged at all, depending on your insurer's rules.

Your own policy, or the other driver's insurer?

After a not-at-fault crash there are usually two ways to get the repair paid for.

Claim on your own policy. Your insurer handles the repair and then recovers the cost from the at-fault driver's insurer. It's often the simplest path if you have comprehensive cover, but your excess and your policy's waiver rules apply.
Claim against the at-fault driver's insurer. You aren't claiming on your own policy, so your own excess doesn't come into it. The trade-off is that their insurer needs to accept that their driver caused the crash before the repair goes ahead. If you're unsure who to contact, here's whose insurance to call when someone hits your car.

If you only have third party property cover, or no cover at all, claiming against the at-fault driver's insurer is normally the main route, because your own policy doesn't pay for damage to your car. Not sure which cover you have? Here's how comprehensive and third party cover differ.

How to give yourself the best chance of not paying it

Get the other driver's full name, address, phone number, rego and insurer at the scene.
Take photos of both cars, the number plates, the road and anything that shows how the crash happened.
Ask witnesses for their contact details.
Don't admit fault or agree to "sort it out later" without swapping details.
Lodge the claim promptly and write down your claim number.
Know what to expect next: here's how long a car insurance claim usually takes.

Clear evidence about who caused the crash is what usually decides whether an excess is waived or recovered.

Where we come in

If the accident wasn't your fault and you have a claim number, SS Automotive can take the claim from there. We arrange the tow (24/7), organise a replacement car where you're eligible once the claim paperwork is finalised and the car is dropped off (see how not-at-fault hire cars work), deal with the insurer and repair the car at our Dandenong workshop, with painting done in our own spray booth and a lifetime warranty on workmanship. See how our not-at-fault accident claims work, or read about our smash repairs. A crash can also damage parts you can't see, so the same team can check your brakes and suspension and wheels and tyres while the car is with us.

Common questions

Is the excess the same as the premium?

No. The premium is what you pay each year for the policy. The excess is what you pay towards a claim when you make one.

Can I get my excess back later?

Sometimes. Some insurers refund it once they recover the cost from the at-fault driver's insurer. Whether and when that happens depends on your policy, so ask your insurer how they handle it for your claim. If you're unhappy with the answer, you can complain to the insurer and then to the Australian Financial Complaints Authority.

What if the other driver drove off?

Then the at-fault driver can't be identified, and many policies will charge the excess in that situation. Report it to Victoria Police and give your insurer every detail you have.

Related help

Accident help at SS Automotive

More guides from our blog

Official resources

For the whole claim process in one place, read our guide to insurance claims after a crash in Victoria.

Insurance Excess Explained: Do You Pay It If You're Not at Fault?