Another Insurance Question

[outatime]

hi guys wondering if you could help me out on this insurance scenario:

What happens if Mike who has comprehensive insurance hits John who does not have insurance? Will Mike's insurance company pay for the damage done to John's car? I believe Mike will pay the excess because he's at fault. What about John? Does he have to pay something?

disclaimer: the character names are fictitious and are not related to real people.

[tpphan]

John will not have to pay anything. Mike will have to pay excess and that will cover damages on John's car. :D

[outatime]

ok cheers.. since JOhn will have to pay nothing, what's the next thing he will do? can he bring his car to any repairers? or will it be Mike to organize the repair?

[Frankie]

u can choose any smash repair company aslong as they are approved by NRMA etc

[outatime]

so what's the process like? does Mike's insurance give John the money to get his car fix? or John goes to Smash Repair shop and gets reimbursed by Mike's insurance?

[sassy_fit_vtit]

Make the claim though the insurance company. and the insurer with liaise with John. John can choose to go to his own repairer, provided he gets quote, or john can choose to go with mike's insurers recommended repairer.

Once Mikes insurer have authorised the repairs on their end john will out his car in for repairs and mikes insurer would pay the repairers directly (thats the usual process

[MikeyG]

then john will be very happy for brand spanking new paint :D

[Limbo]

All depends. Sometimes the insurer will pay you directly and its up to you to pay for your repairs once the assessment has been made. Other insurers will pay directly to the repairer.

Once thing you might want to be aware of is where the other person does not admit fault. It can come to problems if you have no insurance & have to fight the battle in court. I've had 2 instances where this has happened and ended up having to send letters to the insurer to harrass them to pay.

If you have your own insurance they will usually work things out for you.

[outatime]

what happens when car gets stolen? does excess needs to be paid?

[tpphan]

what happens when car gets stolen? does excess needs to be paid?

Considering you have comprehensive insurance, in most cases you will have to pay excess.

[sassy_fit_vtit]

When ever you are in a circumstance were you could not identify the at fault party or the insurance has no one to recover the money off (e.g. storm/hail damage, stolen etc) then an excess needs to be paid