Car accidents

What details do I need to exchange after a car accident? 

If you had an accident with another car, you should ask the other driver to show you their driver licence. Look at the back of the licence, to see if they have a new address.

Under NSW Road Rules, you must exchange some details, including:

• the driver's name and address
• if the driver is not the owner of the car, the name and address of the person who owns the car
• the car's registration number
• any other information necessary to identify the car.

It is an offence to not exchange details. If an accident occurred and the driver didn't exchange their details you should report this to the police. A driver can be fined for failing to stop and provide particulars after an accident.

In additi​on, you should also find out and write down:

• the driver's phone number
• the make, model and colour of the car
• the other car's insurance policy details
• details of any witnesses to the accident, including passengers in any of the vehicles. It is a good idea to get their name, address and contact numbers. You can ask the witness to write down what they saw so they don't forget the details. This may help if there is a dispute about fault.
• the name of any police officers that attended, what station they are from and their contact details in case you need to get a copy of the police report.
  

You should also draw a sketch of the accident and make notes of things like the time of the accident, the location, the street lighting, the weather con​ditions and anything else you think might have contributed to the crash. You can take photographs of any skid-marks on the road, the scene of the accident and the damage to the cars involved.

When you are talking to the other driver you should not admit that the accident was your fault as this may affect any claim on your insurance.

Do I have to rep​​ort the accident to the police?

You must report a​​ car accident to police when:

• a person is killed or injured
  
• a driver didn't stop and give their details to the other driver or drivers, or
  
• a vehicle is towed away after the accident.
  

You must make a report to the police as soon as possible, and within 24 hours (unless there are exceptional circumstances). If you don’t, you may be committing an offence.

If you are the owner or the driver involved in a motor vehicle accident, you may be required to provide the following information to police: 

• the driver’s name and address 
• the name and address of the owner of the driver’s vehicle
• the vehicle’s registration number (if any)
• any other information necessary to identify the vehicle.
  

For more information about reporting an accident to the police, see Crash Reporting FAQs on the NSW Police Force website. 

If someone​​ is killed or injured as a result of the accident, you should get legal advice before making a statement to the police.

If the police want you to make a statement or are asking for more information about the accident, you should get legal advice. For more information, see the FAQ 'I was involved in a motor vehicle accident. The police have told me that I must give them details about the accident. What should I do?'

If you are claiming for personal injuries as a result of an accident you should report the matter to police within 28 days of the accident. 

For more information about claiming for personal injury, you can contact the State Insurance Regulatory Authority (SIRA).

How can I report the accident to the police?

You can report the accident to the police by:

• calling 000 while you are still at the scene of the accident
• going to a police station, or
• telephoning the Police Assistance Line on 131 444.

I was involved in a motor vehicle accident. The police have told me that I must give them details about the accident. What should I do?

There is an exception to the general right to silence when police request certain information in relation to motor vehicle accidents.

One exception to your right to silence is if police give you a 'form of demand.' This means police suspect your car was involved in an offence and you need to tell police who was driving your car at a particular time. If you refuse to provide this information, you might be charged with an offence.

If you are the driver involved in a motor vehicle accident, you may also have an obligation to provide police with information about the crash. In certain circumstances, including if police have asked you to, you must provide the following information to police: 

• the driver’s name and address 
• the name and address of the owner of the driver’s vehicle
• the vehicle’s registration number (if any)
• any other information necessary to identify the vehicle
• an explanation of the circumstances of the crash.

If you don't provide the information, you may be charged with a criminal offence.

If you are unsure whether you are required to provide information to police, you should get legal advice.

When will police attend the scene of an accident?

Police will not always attend the scene of an accident. The police are likely to attend the scene of an accident where:

• someone is killed or injured
  
• drivers have not exchanged details
  
• a driver appears to be affected by drugs or alcohol
  
• police need to direct traffic or deal with hazards
  
• a bus or truck needs to be towed.
  

In these situations, you should call 000 so the police can attend the scene.

The police don't need to attend the scene if only a car needs to be towed away and no-one is injured or affected by drugs or alcohol. 

You can report the accident after you have left the scene by calling the Police Assistance Line on 131 444. 

For more information, see Crash Reporting FAQs on the NSW Police Force website.

How do I know who i​​s at fault in an accident?

Sometimes it can be difficult to know who is at fault in an accident. In most cases, a driver who doesn't take reasonable care and causes an accident is said to be 'at fault'. In some accidents more than one driver may be at fault. 

Even if you know who caused the accident, it can be difficult to work out who is responsible for paying for the damage. For example, if the driver that was at fault was driving for their employer, then the employer may be responsible for paying for the damage.

You may think that the accident was your fault. However, being in a car accident can be very distressing and confusing and it is someti​mes difficult to know whether you are legally at fault until all the facts about the accident can be examined.

It is generally better to talk to a lawyer or your insurance provider about what happened before admitting fault. The​y can help you understand the law and whether your actions mean you are legally responsible for the accident.

You should also read your insurance policy carefully, as it may have ​certain conditions that must be met before the insurance company will accept a claim, for example, reporting the matter to police.

If there is a dispute about who is at fault in the accident, you should get legal advice.

For more information, see Car accidents and Who is Responsible? on the My problem is about section of our website.

If I am fined or charged, am I legally at fault in the accident?

Even if you were fined or charged with a traffic offence it does not necessarily mean that you are legally responsible for repairs to the other vehicle. Who is at fault in an accident will depend on the circumstances of what happened.

If you or the other driver were fined or charged with a traffic offence in an accident, you should get legal advice about your situation.

What should I do if I'm a​t fault?

You should speak to your insurance provider and/or a lawyer before admitting fault. An accident can be distressing and confusing and although you may think you were at fault, the lawyer or insurer will be able to examin​e all of the circumstances. They can help you understand the law and assist you in determining whether your actions were legally responsible for the accident.

If you have insurance, you should also read your insurance policy carefully. It may have certain conditions that must be met before the insurance company will accept a claim, for example, reporting the matter to police. Some insurance policies also state that you should not admit fault as this may affect any claim you make.

If you believe you were at fault, you should get legal advice.

For more information, see Car accidents on the My problem is about section of our website.

If I am at fault, am I responsible to pay for the damage?

In some accidents more than one driver may be at fault, and even if you know who caused the accident, it can be difficult to work out who is responsible for paying for the damage. If the driver who was at fault was driving for another person, for example their employer, that other person may be responsible for paying for the damage.

Even if you are at fault, you may not be responsible for paying for the damage. Whether you need to pay can depend on details of the accident and your circumstances, including:

• whether other driver(s) at fault
• if you were not the owner of the car and you were driving the car at the owner's request, and
• if you were driving for work related reasons.

If you need assistance working out who is responsible to pay for the damage, you should get legal advice.

For more information, see Car accidents on the My problem is about section of our website.

What if I'm i​​njured?

A person who is injured in a car accident can make a claim against the Compulsory Third Party (CTP) insurance company of the driver at fault. CTP insurance is also called a green slip.

A person who is injured in a car accident can claim payment for medical expenses, including ambulance costs, and loss of income. Payments are limited to $5,000 for an injured person who was the at fault driver. If you were not at fault, you might also be able to claim compensation for your injuries. 

There are time limits for lodging a CTP insurance claim. You must lodge your claim within three months of the accident. However, if you want to get ‘back pay’ for loss of income, you must lodge your claim within 28 days of the accident.

For more information about time limits, see the State Insurance Regulatory Authority website.

Do I have to pay for the damage if I was driving a work vehicle at the time of the acc​ident?

If you are an employee and you were driving in the course of your employment (or with your employer's authority) you may not have to pay for damage caused to other vehicles or property in an accident, ev​en if you were at fault. 

Generally, your employer will be responsible for paying for the damage. This is called 'vicarious liability'.

If you are an independent contractor and you caused an accident, you should get legal advice.

For more information, see Car accidents on the My problem is about section of our website.

Do I have to pay for damage if I was driving my personal vehicle for work purposes at the time of the accident?

Whether you or your employer have to pay for any damage will depend on the terms of your employment.

In some circumstances, your employer may be liable. This is called 'vicarious liability'.

If you are an employee driving your own car for your employer's purposes at the time of the accident, you should get legal advice.

For more information, see Car accidents and Who is responsible? on the My problem is about section of our website.

What damage do I ​have to pay for?

Before you admit fault or agree to pay for damage, you should get legal advi​ce and/or speak to your insurance provider.

If you were at fault in the accident and have made a claim on your insurance policy, your insurer should pay for the damage to the other vehicle. If the other driver has given you a quote(s), you should dis​cuss this with your insurer.

If you were at fault and uninsured, or choose not to claim on your insurance, you can ask the other driver/owner to get one or more quotes for the repairs to their vehicle. There is no legal obligation for them t​o provide multiple quotes, although it is common for a couple of quotes to be provided to help determine the fair and reasonable cost of the repairs.

When you receive a quote you should read it carefully to see if the repairs are consistent with the damage caused by the accident. Yo​u don't have to pay for repairs for damage that was not caused by the accident. If you think the quote includes repairs for damage that was not caused by the accident, you should show the quote to another repairer and ask if the costs claimed are reasonable and the repairs consistent with the type of damage done to the vehicle.

For more information, see the Guided Pathway Motor Vehicle Accident Problem Solver on the Financial Rights Legal Centre website.

How many qu​​otes shou​​ld I get?

There is no legal obligation to get more than one quote, although it is common for two or three written quotes to be given to help determine whether the cost of repairs is fair and reasonable. This is particularly helpful if ther​e is a dispute and legal action has been started.

For more information, see Car accidents and Evidence about fault on the My problem is about section of our website.

What if the vehicle ​was written off?

A vehicle can be written off because the repairs cost more than the car is worth. If this happens, the person held responsible for the accident will only have to pay for the value of the car, less any salvage value if the damaged vehicle was sold to a wreckers or second hand dealer. 

What do I do if my car is written off and is still under finance?

If your car is written off and is still under finance, you may have to pay the money you receive to the finance company. If there is still money outstanding on your loan contract, you may have to pay that also.

If you are insured, your insurer may pay the money directly to the finance company. 

If you are being chased for money by your finance company, you should get legal advice.

Can I include the cost of hiring a car as part of my claim against the other party/insurer?

Usually, the person at fault in the accident will be responsible for paying the reasonable costs of any damage you have suffered as a result of the accident. This can include the costs of hiring a car, as long as the cost is reasonable in the circumstances.

For more information, see Hire cars in Who is responsible? on the My problem is about section of our website.

If you want to claim the cost of hiring a car, you should speak to your insurer or get legal advice.

Can I claim for lost wages or profit as a result of my car being damaged?

In some cases, you may be able to claim for lost wages or profit from the other party if your vehicle was used to earn income and was damaged. This is called a demurrage claim.

Before including this in your claim, you should get legal advice.

What happens if I agree to pay​ for the damage?

Before agreeing to pay for damage you should:

• ensure you have had legal advice about whether you are responsible to pay for the damage
  
• ask for quotes and check them carefully to see if the repairs are consistent with the damage caused in the accident.
  

If you agree to pay the other driver's claim and you have no insurance or aren't claiming on your insurance, you can negotiate with the other driver. You can offer to pay:

• the total amount within a certain timeframe
  
• a lesser amount to settle the claim in full, or
  
• instalments rather than one lump sum.
  

When you negotiate with the other driver, either verbally or in writing, you should be careful with what you say. You should include the words 'without prejudice' on any letter you write. Writing 'without prejudice' will make it less likely that anything you say in the letter can be used against you in court.

If you and the other party reach an agreement, you should put the agreement in writing. It is important to make sure that your agreement only covers property damage from the accident, not payment for any injuries.

You can ask the other party to sign a 'release' - a document that states they accept the payment as full and final settlement of the claim made against you.

For more information, see Car accidents on the My problem is about section of our website.

For more interactive assistance, see the Guided Pathway Motor Vehicle Accident Problem Solver on the Financial Rights Legal Centre website.

Before signing anything, you should get legal advice.

I had an accident while driving a taxi. I was at fault. Am I liable to pay for the repairs to the other driver's car?

The owner of the taxi, also called the operator, must ensure that the car is insured. If you are involved in an accident, you should provide the operator's details to the other driver and notify the operator.

If you were at fault, the other driver may make a claim against you or the operator for the damage. Normally, the operator can make a claim on their insurance policy.

For more information, see Taxis in Who is responsible? on the My problem is about section of our website. 

If the operator is refusing to make a claim on their insurance policy or wants you to pay the excess, you should get legal advice.

Should I make a claim on my in​surance policy?

Whether you make a claim on your insurance policy depends on:

• the type of insurance cover you have
  
• the amount of excess you have to pay for your insurer to deal with the matter
  
• the cost of repairs to the damaged vehicle
  

• any effect a claim would have on your no-claim bonus with your insurer, or the cost of your premium the following year. Insurers often increase premiums if you have had an accident, regardless of whether you were at fault.

For more information, see the Guided Pathway Motor Vehicle Accident Problem Solver on the Financial Rights Legal Centre website.

What are the different type​s of insurance cover? 

There are different types of insurance, including:

• comprehensive insurance
  
• third party property
  

• Compulsory Third Party (CTP)

For more information, see Car accidents on the My problem is about section of our website.

What if I don't have insurance, or I decide not to claim on my insurance?

Your options will depend on whether you or the other driver was at fault in th​e accident. If you don't know who was at fault, you should get legal advice.

If the other driver was at fault and owes you money, you should contact them to discuss payment. This can be done verbally or by letter, called a letter of demand. 

If the other driver doesn't pay, you can consider starting court action to recover the money owed to you.

If the other driver believes you were at fault in the accident, they or their insurer may try to claim money against you for the repairs to their vehicle.

If you agree that the accident was your fault (after speaking with a lawyer), you should still ask the other party for a quote for the repairs and check it carefully to see if the repairs were consistent with the damage caused in the accident. 

If you are disputing the amount the other driver is claiming, you should get legal advice.

If you agree to pay the amount they are claiming against you, you could consider negotiating to pay a lesser amount to settle the claim or to pay in instalments.

When you negotiate with the other driver, either verbally or in writing, you should be careful about what you say. You should write t​he words 'without prejudice' on any letter. This will make it less likely that anything you say in the letter can be used against you in court.

If you and the other party reach an agreement you should put the agreement in writing. It is important to make sure that your agreement only covers property damage from the accident, not payment for any injuries.

You can ask the other party to sign a 'release' - a document that states they accept the payment as full and final settlement of the claim made against you.

Before signing anything, you should get legal advice.

For more information, see Car accidents on the My problem is about section of our website.

What can I do if my insurer refuses my claim?

If you insurance claim is refused, you can:

• complain in writing to your insurer's Internal Dispute Resolution department
• complain to the Australian Financial Complaints Authority (AFCA)
• apply to the NSW Civil and Administrative Tribunal (NCAT) for a consumer claim, or
• go to court.

For more information, see Car Insurance Claim Refused on the Financial Rights Legal Centre website.

What can I do if I have made a claim to my insurer but they have not made a decision?

Your insurer must decide to accept or reject your claim within 10 business days. If they need more information or an assessment to decide your claim, they must contact you within the 10 business days of getting your claim and tell you:

• what other information they need
  
• if a loss assessor is needed, and
  
• the estimated amount of time they need to make a decision.
  

If the insurer is not responding to your claim, or not informing you about the reason for the delay, you can:

• write to the insurer
• make a complaint to the Australian Financial Complaints Authority (AFCA).
  

You may also make a complaint about the way the insurer is dealing with your claim by writing to the General Insurance Code of Practice.

For more information, see I am in insurance claim limbo - what do I do? on the Financial Rights Legal Centre website.

For more information, see Insurance on the My problem is about section of our website.

Can I make the owner of the other car claim on their insurance?

If the owner of the other car has insurance, they can choose if they want to make a claim on their insurance. You can't force them to make a claim on their insurance.

For more information, see Insurance on the My problem is about section of our website.

If you are not sure what to do, you should get legal advice.

What if the ​other party's insurer ​​has refused their claim, and won't pay for my repairs?

If the other party's insurer won't pay for the cost of repairing the damage to your car, you could contact the insurance company and ask for their decision to be reviewed through their internal dispute resolution process. If the insurer responds to you and confirms that they won't pay for the cost of repairs to your vehicle, you can make a complaint as an uninsured third party motorist to the Australian Financial Complaints Authority (AFCA). The compensation you can seek will be capped at $19,000 (as at 1 January 2024).

In most cases, AFCA will not accept a complaint unless an insurance claim has been made by the other party. However, you may still be able to make a complaint if the other party has not made an insurance claim and they have died or can't be found. In this case, you should speak to AFCA and get legal advice.

If your claim is more than $19,000 your only option for chasing the money for repairs is to go to court. Your claim will be against the other driver.

If you can't claim against them, you may have the option of seeking leave to claim against their insurance company (if they have insurance). Before filing a claim, you should get legal advice.

For more information, see Insurance complaints on the AFCA website and Insurance on the My problem is about section of our website.

What if I am at fault and I'm insured but can't afford to pay my excess?

If you can't pay your excess, you can try to negotiate with your insurer. You may ask to defer payment of the excess or offer to pay the excess in instalments.

If I claim on my insurance, can I choose my own repairer?

You need to check your insurance policy. Your policy may: 

• let you use your own repairer or get a quote from your own repairer
  
• specify your insurer's repairer or authorised repairers.
  

Your policy may also tell you the process you need to follow to use your own repairer, like getting permission from the insurer. 

If you choose your own repairer, your insurer is usually not responsible for the quality of the repairs.

If you have concerns about your insurer's repairer, you should raise the matter with your insurer's internal dispute resolution service. You can find the details of your insurer's internal dispute resolution service through your insurer directly or on the Australian Financial Complaints Authority (AFCA) website.

For more information, see Insurance complaints on the AFCA website and Insurance on the My problem is about section of our website.

What happens if there are problems with the repairs done by the insurer's repairer?

If your insurer handled the repairs, your insurer is responsible for the quality of the work. This includes materials used by the repairer. You should also check your policy, as it may give you additional rights. If you have a dispute with your insurer about the repairs, you may:

• contact your insurer and ask them to fix the problem
  
• lodge a complaint with your insurer's internal dispute resolution service. You can find the details of your insurer's internal dispute resolution service through your insurer directly or on the Australian Financial Complaints Authority (AFCA) website.
  
• take action directly against the repairer.
  

If you have concerns about the quality of the repairs done by your insurer's repairer, you should get legal advice.

For more information, see Insurance complaints on the AFCA website and Insurance on the My problem is about section of our website.

If I am at fault, should I pay the other driver's excess to settle a claim?

Paying the other driver's excess will not settle a claim. The other driver's insurer may still chase you for costs in relation to the other driver's claim.

If you want to settle your matter, you should get legal advice.

Does the other driver, or their insurer, have to contact me before they repair the other driver's car?

There is no legal requirement for the other driver or their insurer to contact you before repairing the other driver's car. They don't need to let you examine the car or give you an opportunity to repair the car.

If you are at fault, the other driver or their insurer can repair the car and then ask you to pay the repair costs.

If you believe that you weren't at fault or that the repair costs are unreasonable, you should get legal advice.

For more information, see Insurance on the My problem is about section of our website.

I was involved in an accident while driving a hire car. The car hire company has sent me an invoice for repairs to the damaged hire car. What can I do?

You should check the terms and conditions of your car hire agreement to see what you are covered for. If you are not sure, you should get legal advice.

If the damage is not covered, you may be liable for the repairs to the car.  You can try to negotiate with the hire company and request an itemised invoice. You can lodge an internal complaint with the hire company. If you are unable to resolve your dispute, you can complain to the Australian Car Rental Conciliation Service if the hire company is a member of the scheme.

For more information, see Car accidents on the My problem is about section of our website.