All registered vehicles in NSW have compulsory third party insurance. It is the insurer that pays out the compensation for personal injury claims of other parties. If you are at fault and liable to pay money to another party, an insurance policy may or may not pay this liability for you after a thorough investigation.

What kind of insurance makes each party pay for their own damages regardless of who is at fault in an auto accident?

Also called “car damage coverage,” collision coverage allows you to make a claim with your own insurance company to pay for repairs to your vehicle, regardless of who was at fault for the accident.

What happens if your insurance company finds you at-fault?

If you live in a fault state, the person responsible for the accident will hold liability for anyone’s injuries. The other driver would file a claim with your insurance company, and you or your car insurance will pay for losses. In a no-fault state, however, each party’s auto insurance usually covers their losses.

How are fender benders judged by car insurance?

Fender benders are not judged the same way as major collisions, for example, because fender benders don’t cost the insurance company as much. Additionally, they will look at who caused the accident. If you did not cause the accident, your insurer may not raise your rates.

Do you have to pay out of pocket for a Fender Bender?

The collision portion (if you have it) covers damage to your own car. But you’ll need to pay a deductible before the coverage kicks in on the collision portion. If the damage to your car costs less than your deductible or just slightly more, you should handle the repairs out of pocket.

When to call the police after a Fender Bender?

If the other driver drove off, you can tell the police their license number once they arrive. In some cases, the fender bender seems so minor that both parties avoid calling the police and simply exchange car insurance information. However, it’s very important to have a police report of the accident filed for insurance purposes.

What do you need to know about a Fender Bender?

Vehicle Information: You’ll need the other vehicle’s color, make, model, and year. Write down the car’s license plate number, and a description of the damages you can see. Photographs and Videos: Use a camera or cell phone to take photographs and videos of the accident scene, the cars, and the point of impact.