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Vehicle Damage Disputes

Disputes over vehicle property damage can include conflict over:

• who is at fault, who should pay, how much and when
• the amount of damage to each vehicle, 'write-offs' and disposing of the wreck
• legal costs and incidental costs (towing, storage, hire of replacement vehicle)
• personal injuries (court-annexed cases).

If you have been involved in a motor vehicle accident and there is a disagreement over payment for repairs to vehicles, or other damages, the Dispute Settlement Centre Victoria (DSCV) can help you if you are the driver, the owner, or the insurer of the vehicle involved and whether or not you are insured.

The following information is not legal advice and has been included to help you start thinking about the issues involved.

Dealing with disputes about vehicle damage

Many disputes can be resolved through communication and negotiation, which can help to reduce costs, delays and legal action. The Dispute Settlement Centre provides a free service and can offer advice and tips for dealing with matters yourself. The Centre also provides neutral, objective mediators to help you resolve disputes of any size or complexity.

The 'disputeinfo' website has step-by-step advice about common dispute situations and practical solutions.

You can get help with mediation through the DSCV at any stage of vehicle property damage cases:

• immediately after the accident
• when legal action is being considered or threatened
• when court action has started.

There is no set procedure at law about how to negotiate with the other driver or with insurers. If you need to make a claim through your own insurer, you will have to ask them what your policy requires from you. If you attend mediation without consulting your insurer, it may affect a claim made afterwards. Your insurer can attend mediation with you if you do make a claim.

Generally, the more information the parties give each other, the quicker the dispute can be resolved. The sooner you obtain quotes, and the more quotes you provide, the more options you have for settlement.

Both parties should consider what is reasonable in the circumstances. If you cannot resolve the matter between yourselves, it could go to court. The quotes or assessments may be raised as evidence, but only a Magistrate can make a ruling on the amount of damages that can be awarded.

Who else can help?

If either vehicle was damaged in an accident, you must exchange names and addresses at the scene of the accident. If anyone has been injured, you must report the matter to the police.

Most insurance policies have a 'duty of disclosure' which mean you must tell your insurer about all driving incidents. If you don't, your insurer could refuse to cover you later. You should report the matter to your insurer (if you have one) even if you don't intend making a claim, or are not sure whether you will make a claim.

If you are insured and your insurance policy covers you for this kind of accident, you must then decide whether you wish to make a claim. You will need to check with the other person's insurer whether you can make a claim against their policy.

If your insurance company becomes involved, they will conduct negotiations on your behalf. If you are not insured, or do not make a claim, you will have to negotiate with the other driver (or their insurer) yourself.

You may decide to seek legal advice before deciding whether to make a claim on your policy or on the other person's policy, if they are insured.

The Transport Accident Commission (TAC) manages compulsory third party insurance for personal injury that car owners pay with their registration. It's designed to cover medical expenses for victims of car accidents. You can contact them directly if you need to make a claim with the TAC or wish to appeal a decision.

The Insurance Ombudsman is a free national service that answers enquiries from consumers and resolves complaints they have with their insurer.

Insurance companies generally have their own internal customer complaints service. Contact the relevant insurer to find out how they handle disputes.

If you are considering taking legal action we recommend you seek independent legal advice. Contact any of the following:

• Victoria Legal Aid
• Community Legal Centre
• the Law Institute of Victoria.