NSW Reversed into a vehicle parked across my driveway.

[Ben007]

Hi,
I need some advice from anyone who has been in a situation similar to mine, especially the ruling in a NSW court.

I accidentally reversed my courier Ford Transit van into a car which was parked immediately across my driveway one night few months ago. Since my house is on a very narrow street, I told the driver of the vehicle not park there a few times before in the past whenever he did park across my driveway, however he continued to park there occasionally.

I have just received a notice from the owner’s insurance company for the damages which the insurance company claims is $31k. I’m certain the damages are no where near what had been claimed as it was a just a touch and in the night I couldn’t see any damages. There was no damages to my vehicle.

I would appreciate anyone with genuine advice.

 

[Tim W]

You are uninsured yourself?

 

[Ben007]

Thank you for your responding, yes, I’m not insured.

 

[Tim W]

Uninsured? You're then almost certainly liable personally
for the cost of repairing the damage you caused, and any related costs.
Smarty-pants as it sounds, what you basically did was gamble the cost of insurance
against the risk of having to pay (rather more) for somebody else's repairs.
You lost.

In insurance-think, the moving vehicle is (rebuttably) presumed to be at fault.
You may have facts that can rebut that presumption, or not.
Sometimes, insurers include terms in their policies such as "won't pay if you are driving unlawfully at the time of the accident."
But sometimes, as appears to be the case here, they will pay a claim.

Basically the way the system works is....

1. The other driver claims on their insurance.
Their insurer pays their claim (perhaps minus any excess).

2. Where you are not insured, and so there is no other insurer to claim against,
the insurer then sues the other driver (that is, you), personally,
to recover their loss (ie the money they paid out in their client's claim).
This can happen in the name of their insured, or in their own right.

3. It usually starts when you receive a thing called a Letter of Demand.
That letter will say something like
"Pay us x dollars by date Y or we will take you to court".
Their insured is no longer involved.

3. At this point, you go to see a lawyer of your own.
This is to help you work out whether or not to pay the amount demanded,
in which case the matter is over, or, to defend the claim in court,
when they start an action against you.
Yes, this will cost you money, and no, this is not work
for which either Legal Aid, or "No Win No Fee", applies.

4. You make an offer to settle the matter. They reject it.
You then end up in court, where you probably lose.
You receive an order to pay the insurer. And probably the insurer's costs.

 

[Ben007]

Uninsured? You're then almost certainly liable personally
for the cost of repairing the damage you caused, and any related costs.
Smarty-pants as it sounds, what you basically did was gamble the cost of insurance
against the risk of having to pay (rather more) for somebody else's repairs.
You lost.

In insurance-think, the moving vehicle is (rebuttably) presumed to be at fault.
You may have facts that can rebut that presumption, or not.
Sometimes, insurers include terms in their policies such as "won't pay if you are driving unlawfully at the time of the accident."
But sometimes, as appears to be the case here, they will pay a claim.

Basically the way the system works is....

1. The other driver claims on their insurance.
Their insurer pays their claim (perhaps minus any excess).

2. Where you are not insured, and so there is no other insurer to claim against,
the insurer then sues the other driver (that is, you), personally,
to recover their loss (ie the money they paid out in their client's claim).
This can happen in the name of their insured, or in their own right.

3. It usually starts when you receive a thing called a Letter of Demand.
That letter will say something like
"Pay us x dollars by date Y or we will take you to court".
Their insured is no longer involved.

3. At this point, you go to see a lawyer of your own.
This is to help you work out whether or not to pay the amount demanded,
in which case the matter is over, or, to defend the claim in court,
when they start an action against you.
Yes, this will cost you money, and no, this is not work
for which either Legal Aid, or "No Win No Fee", applies.

4. You make an offer to settle the matter. They reject it.
You then end up in court, where you probably lose.
You receive an order to pay the insurer. And probably the insurer's costs.

 

[Ben007]

Thank you for detailed informations. I also interested to know if he was also at fault by parking across m driveway on a narrow street. I read an article where it is stated that in NSW you cannot park across a driveway.

 

[Tim W]

I also interested to know if he was also at fault by parking across m driveway on a narrow street.

No. At least, not in the way you might be hoping for.
Your duty as a driver
to not collide with other vehicles
("to drive with due care, skill, and attention")
is more legally relevant.

 

[Rod]

Ask to see photos and a detailed quote.

You can argue some contributory negligence but as Tim says hitting a stationary car makes it hard for you. In your favour, I'd argue, is night time and illegal parking.

 

[Tim W]

Ask to see photos and a detailed quote.

You can argue some contributory negligence but as Tim says hitting a stationary car makes it hard for you. In your favour, I'd argue, is night time and illegal parking.

Yes, but....

Thing is, the other guy's insurers appear to have already paid the claim.
Otherwise, they would not be coming after you, now.

In the course of deciding whether or not to pay their client's claim,
they would have thought about any questions of contributory negligence
(ie the stuff about night time and unlawful parking),
and made the decision to pay the claim anyway.
They are not going to "un-pay" it now.