INSURANCE-MOTOR ACCIDENTS PART I

BANG!!! Jesus Christ!…..Oh no, now what? It is often hard to know what to do if you are involved in a motor vehicle accident and assuming you have survived it. What rights and responsibilities do you have? And what actions, if any, should you take?

Do not panic! Just take a few minutes to read through this article. I have tried to answer most of your questions and give you some idea of what you need to do.

At the scene of the accident. Drivers involved in an accident always need to exchange names, addresses, telephone numbers and vehicle registration numbers. You should also ask whether the other vehicle is insured, and if so, with which company.

If there are any willing witnesses, it is essential that you also write down their names, addresses and telephone numbers. You only need to report the accident to the police if someone has been injured, if the other driver has left without exchanging their details with you, or if damage is done to property belonging to a person who is not at the scene of the accident.

Never admit that the accident was your fault. You may not know what actually caused the accident at this time. Accidents happen in seconds so it is difficult to determine the cause on the spot. Write down the exact details of the accident as soon as possible.

Initially and irrespective of whether or not either driver is insured, or whose fault it was, getting a repairs quotation is the first step that you need to take. A quotation is a written statement, made by a mechanic or panel beater, of the damage done and the amount that it will cost for your vehicle to be fixed.

A quotation should be obtained as soon as possible after the accident. Take your damaged vehicle to a mechanic or panel beater, who will inspect it and write out a quotation. Getting a quotation should not cost you anything. You may get one quotation. But you also have to show that this quote is reasonable and fair. The best way to do this is to get two independent quotations. The lesser of the two amounts is the one you can claim.

Will I have to repair my vehicle? You are under no obligation to repair your vehicle. If the accident was not your fault, you may be entitled to the cost of the repairs, but once you get the money it is up to you how it is spent.

Can I come to an agreement with the other party? If no insurance companies are involved you are free to negotiate a settlement with the other party on any terms that you both agree upon. If you believe that the other driver is at fault and you do not wish to claim on your own insurance, or if you have none, then write a letter to the other driver demanding payment for the damage to your vehicle.

Include your quotations and ask for a proposal, within ten (10) days, for the payment of your claim. If the other driver is financially constrained. You should also offer an inspection of your vehicle and suggest a reasonable payment by instalment plan. But also let the other driver know that if you have not reached an agreement within ten (10) days, you would be forced to consider commencing legal proceedings against him or her.

If the accident was your fault and you have received a letter demanding payment for repairs, respond immediately by telling the other driver whether you are insured and whether you can afford to pay for the repairs to his or her vehicle. You should also arrange to inspect the other driver's vehicle, to ensure that the quotation actually reflects the damage done to the vehicle.

If you cannot pay in one lump sum, then you can suggest a plan to pay, weekly or monthly instalments. You should also disclose your income and list your living expenses and your assets to show the other driver that you are not in a position to afford a higher amount.

If you are not insured and cannot pay the cost of repairs at all, you must show the other driver why, by disclosing your income and listing your living expenses and assets.

Should I visit a Lawyer? You can only have to see a Lawyer if you cannot reach an agreement about who caused the accident or about the cost of the repairs. The other driver is at fault and refuses to pay for damage to your vehicle. The other driver is at fault and refuses to claim on his or her insurance. The other driver believes the accident was your fault and threatens to sue you. One option that your Lawyer may suggest is that you sue the other driver.

Should I sue the other driver? Be mindful that going to Court can be an expensive exercise and does not guarantee success. If you are successful, you may be reimbursed for most of your cost. However, if you are unsuccessful, in addition to paying your own costs, you will have to pay the other driver's claim, as well as legal costs, as assessed by the Court.

It is also possible that the costs of calling witnesses to give evidence would be added to this. The smaller your claim, the less value there is in suing. When legal costs are taken into account, they may outweigh the amount that you seek to recover. Therefore, it is very important that you carefully consider your options before deciding to sue the other driver.

What if I have Insurance Cover? No matter who caused the accident or whether or not you want to make an insurance claim, you should still inform your insurance company of the accident as soon as possible.

Ask them to send you a Claim Form -fill this in and return it, even if you are not going to make a claim. If you want to make a claim, the insurance company will take over the matter on your behalf when they get your claim form. You will usually have to pay the excess at this stage.

If you do not want to claim, mark the top of each page of the claim form with ‘REPORT ONLY’. Then your insurer will simply file it away - there will be no increase in premiums or change to your rating. If you change your mind and want to make a claim later, you can still do so, and your insurer will still have all your details.

Lastly, if the other party contacts your insurance company, they will have your version of the accident on file and they can decide whether or not to pay for the damages. Look out for Part II.

Note: In this column I offer insurance information in general. Do not completely rely on this column to make particular insurance decisions. For specific insurance advice email me at; insuculture@gmail.com