Hit by an uninsured driver in Australia: who pays for your car and your injuries

If an uninsured driver hits you in Australia, your injuries are still covered through the CTP scheme, because every registered vehicle has CTP, and schemes have arrangements for unregistered or unidentified vehicles. Your car damage is a different matter: if you have comprehensive cover, claim on your own policy, and the insurer will usually try to recover the cost from the other driver (often waiving your excess if you can identify them). If you have third party property or third party, fire and theft, check for an uninsured motorist extension, which commonly pays a limited amount when you were not at fault and can identify the other driver. Without either, you would need to recover the cost from the other driver yourself.

This guide sits in the car insurance mistakes and claims section.

Who pays for what

At the scene

The uninsured motorist extension and any excess waiver usually depend on identifying the other driver. Collect:

• the driver's full name, address and phone number
• the vehicle registration number, make, model and colour
• the owner's details if the driver is not the owner
• photos of their licence (with permission), the vehicles, the scene and damage
• witness names and numbers
• a police event or report number if police attended or you reported it

If the driver leaves without giving details, report it to police. A hit and run is generally treated differently under extensions because the driver cannot be identified.

Worked example: three levels of cover (illustrative)

An uninsured driver runs a stop sign and hits Olivia's car, which is worth $16,000. Repairs cost $6,400. She can identify the driver.

Comprehensive with $700 excess, waived for identified not-at-fault claims: Olivia pays $0. Her insurer pays $6,400 and pursues the other driver.

Third party, fire and theft with an uninsured motorist extension capped at $5,000 (illustrative cap): the insurer pays up to $5,000, Olivia pays $1,400 and can pursue the other driver for that amount. If the extension has its own excess, she pays that too.

Third party property without an extension: Olivia pays $6,400 and must recover it from the other driver.

You can compare these outcomes for your own car with the cover level comparison.

Recovering costs from the other driver yourself

If your policy does not cover the damage, or only partly:

1. Get two written repair quotes and keep photos.
2. Send a letter of demand to the other driver setting out what happened, the amount and a deadline for payment.
3. Negotiate a payment plan if they cannot pay at once; put any agreement in writing.
4. Consider a small claims process: each state and territory has a simplified procedure for smaller civil claims, usually in the local or magistrates court, with its own monetary limits and fees. Check which court or tribunal handles motor vehicle property damage claims in your state before filing.
5. Get advice if the amount is large or the driver disputes fault. Community legal centres can help.

Being right does not guarantee being paid: an uninsured driver may have no assets. That risk is one reason to choose comprehensive cover on a car you could not afford to replace.

If you are the uninsured driver

If you caused the crash without property cover, the other driver's insurer will usually send you a letter of demand. Do not ignore it. Ask for evidence of the costs, check whether the amounts are reasonable, and negotiate a payment plan if needed. AFCA can handle some disputes involving uninsured drivers and the insurer of the insured driver within the limits of its rules. For hardship or large debts, see a financial counsellor or a community legal centre. See CTP vs third party property for why this happens.

Injuries: the CTP side

Injured people claim through the CTP scheme of the state where the crash happened. Where the at-fault vehicle was unregistered or cannot be identified, schemes have arrangements to handle the claim: in some states this is a Nominal Defendant, in others the scheme insurer handles it directly. Time limits and reporting requirements apply. See CTP injury claims by state.

Checklist

• Exchange and photograph details, or report to police if the driver leaves
• Tell your insurer, even if you think you are not covered
• Check the PDS for an uninsured motorist extension and its conditions
• Ask whether your excess is waived for identified not-at-fault claims
• Keep all quotes, invoices and correspondence
• Lodge any injury claim with the CTP scheme promptly

If the insurer refuses, see disputing a refused claim.

Frequently asked questions

Does the uninsured motorist extension cover a hit and run?

Usually not, because the other driver cannot be identified. Check your PDS.

Can I claim the other driver's CTP for my car repairs?

No. CTP covers injuries only.

Will a not-at-fault claim affect my no claim bonus?

Usually not, if you can identify the at-fault driver. Hit and run claims may be treated differently. See no claim bonus explained.

What if the other driver says I was at fault?

Your insurer, the evidence and, if necessary, a court or tribunal decide. Dashcam footage, photos and witnesses help.

Sources

• Australian Financial Complaints Authority — uninsured motorist disputes
• Moneysmart — what to do after a car accident
• State Insurance Regulatory Authority — NSW injury claims including unidentified vehicles
• Motor Accident Insurance Commission — Queensland CTP and the Nominal Defendant
• Insurance Council of Australia — General Insurance Code of Practice