What Does “At Fault” Actually Mean?
Being “at fault” means a driver caused or contributed to a collision because they failed to take reasonable care or breached the road rules.
Common examples include:
- Rear-ending another vehicle.
- Failing to give way.
- Running a red light or stop sign.
- Distracted driving.
- Speeding.
- Unsafe lane changes.
- Driving too closely.
Some accidents have a clearly identifiable at-fault driver, while others are more complex. In certain situations, both drivers may share responsibility for the accident. This is commonly referred to as contributory negligence, where each party contributed to the circumstances leading to the collision.
Fault is generally determined using a combination of evidence, including:
- Driver statements.
- Dashcam footage.
- Witness accounts.
- Photographs of the accident scene.
- Vehicle damage patterns.
- Police reports where available.
- Relevant road rules and traffic laws.
For this reason, it’s generally best to avoid making definitive statements about who was at fault while at the scene. This isn’t about denying responsibility—it simply reflects that liability is usually assessed later by insurers based on the available evidence, rather than on comments made in the immediate aftermath of the collision.
Who Usually Pays the Costs After a Car Accident?
Although the at-fault driver is generally legally responsible for the losses they cause, the payment process is usually handled by insurance.
If the at-fault driver has comprehensive insurance or third-party property insurance, their insurer will normally pay for the reasonable property damage they are liable for, subject to the policy terms. This often includes repairs to the other vehicle, towing costs, replacement vehicle hire, and other recoverable losses.
If the at-fault driver is uninsured, they may have to pay these costs themselves — what that looks like in practice is covered later in this guide.
Third-Party Property Insurance vs CTP Insurance: What’s the Difference?
It’s also important to understand the difference between third-party property insurance and Compulsory Third Party (CTP) insurance.
CTP insurance covers injuries suffered by people involved in the accident. It does not pay for damage to vehicles or other property. Vehicle repairs, replacement costs and similar losses are usually covered under comprehensive or third-party property insurance instead.
Third-party property insurance, by contrast, covers damage a driver causes to other people’s vehicles and property — but not damage to their own car. Comprehensive insurance goes further, covering both the policyholder’s own vehicle and the damage they cause to others.
What Expenses Can the At-Fault Driver Be Responsible For?
The financial responsibility of the at-fault driver extends beyond simply repairing the damaged vehicle.
Depending on the circumstances, they may be responsible for reasonable costs including:
- Vehicle replacement if the car is declared a total loss
- Towing and storage charges
- Accident replacement vehicle hire costs
- Damage to other property
- Commercial vehicle downtime in appropriate circumstances
- Loss of income where legally recoverable
- Medical expenses and injury claims managed through the applicable CTP insurance
The exact amount payable depends on the facts of each accident, the extent of the damage, and whether the claimed expenses are considered reasonable and directly related to the collision.
Replacement Vehicles for Not-at-Fault Drivers
Where the not-at-fault driver requires a replacement vehicle because their own car cannot be used, reasonable hire costs may also form part of the at-fault driver’s financial responsibility. Rather than paying these hire costs upfront and lodging a claim through your own insurer, eligible not-at-fault drivers can often choose to work directly with I’m In The Right, an Australian accident management company. I’m In The Right arranges like-for-like replacement vehicles—including compact cars, SUVs, luxury and commercial vehicles—for no out-of-pocket hire cost to eligible drivers. They also manage communication with the at-fault insurer, and recover vehicle hire costs directly from them. Once a not-at-fault application is approved, a replacement vehicle can be dispatched within 15 minutes, subject to availability.
What Happens If the At-Fault Driver Doesn’t Have Insurance?
If the at-fault driver doesn’t have comprehensive or third-party property insurance, they remain legally responsible for the losses they cause. Rather than an insurer managing the claim on their behalf, the not-at-fault driver (or their insurer) will usually seek to recover the costs directly from them.
This often begins with a letter of demand setting out the amount claimed and the reasons for the claim. If the parties cannot reach an agreement, the dispute may proceed through the courts or another appropriate legal process to determine liability and any amount payable.
If the uninsured driver cannot immediately pay the full amount, the parties may agree to a payment arrangement or another negotiated resolution. Financial hardship does not automatically remove legal responsibility, although it may affect how and when any debt is ultimately recovered.
With I’m In The Right, hire costs are recovered directly from the at-fault driver’s insurer—so if the at-fault driver doesn’t have insurance, you generally won’t be eligible for a no-out-of-pocket replacement vehicle through this pathway.
For not-at-fault drivers, it’s worth remembering that these recovery discussions generally take place between the responsible party, insurers and any legal representatives involved. Where the at-fault driver is insured, the insurer will usually handle these matters on the driver’s behalf.
What If Fault Is Disputed?
Not every accident has an immediately obvious outcome.
Sometimes both drivers believe the other person caused the collision, or there may be limited evidence available to clearly establish responsibility.
When fault is disputed, insurers investigate the accident using the same kinds of evidence discussed earlier—driver statements, dashcam footage, witness accounts, police reports, vehicle damage, and relevant road rules.
Additional expert assessments may also be required in more complex cases.
While liability is being investigated, the claims process may take longer than expected. This can affect repair approvals, settlement discussions and other aspects of the claim.
What Should You Do If You’re Not at Fault?
If another driver caused the accident, taking the right steps early can make the claims process much smoother.
After ensuring everyone is safe and seeking medical assistance if required, you should:
- Exchange names, contact details and licence information with the other driver.
- Obtain the other driver’s registration and insurance details where possible.
- Take photographs of the accident scene, vehicle damage and road conditions.
- Collect witness contact details if anyone saw the collision.
- Report the accident to police if legally required.
- Avoid making definitive statements about fault at the scene.
Once you’ve gathered the necessary information, consider your options before lodging an insurance claim.
While contacting your insurer is one pathway, eligible not-at-fault drivers may find it beneficial to contact I’m In The Right first for a like-for-like replacement vehicle, which can be arranged for no out-of-pocket cost, with hire costs paid directly by the at-fault insurer.
Is Going Through Your Own Insurer the Only Option?
Not necessarily.
Many drivers assume they must immediately lodge a claim through their own insurer after a not-at-fault accident. While this may be appropriate in some situations, it isn’t the only available option.
Depending on your insurance policy, your insurer may:
- Offer only a limited range of replacement vehicles
- Restrict how long a replacement vehicle is available, even where repairs are delayed by parts shortages or complex work
- Require you to pay an excess initially in some circumstances
For eligible not-at-fault drivers seeking a replacement vehicle, working with an accident management provider can offer a more suitable alternative. I’m In The Right offers flexible hire periods, ensuring you have a replacement vehicle while your own is off the road being assessed or repaired, rather than ending after a fixed number of days—on top of these eligible drivers keep their like-for-like, no-out-of-pocket-cost replacement vehicle for as long as their own car is off the road being assessed or repaired — not just for a fixed number of days.
Common Misconceptions About What At-Fault Drivers Pay
There are several common misconceptions about who pays after a car accident and how the process works.
“The at-fault driver pays everything personally.”
Usually not.
Where the at-fault driver has third-party property or comprehensive insurance, their insurer generally manages and pays eligible claims on their behalf. The driver may still be responsible for policy excesses or higher future premiums, but they typically aren’t paying each expense directly.
“CTP insurance covers vehicle damage.”
This is incorrect.
CTP insurance generally covers injuries suffered by people involved in the accident. Damage to vehicles and property is usually covered by comprehensive or third-party property insurance.
“You must only use your own insurer after a not-at-fault accident.”
Not always.
Eligible not-at-fault drivers may have alternative options available, including accident management services that provide replacement vehicles while recovering reasonable hire costs from the at-fault insurer. The at-fault driver’s insurer may also be responsible for covering the reasonable cost of repairs to your vehicle, towing and other accident-related losses.
“Replacement vehicles are only available for a few days.”
Not necessarily.
The available hire period depends on the pathway chosen. For example, some insurance policies cap hire vehicles at a fixed number of days regardless of how long repairs actually take, while eligible not-at-fault drivers using I’m In The Right may retain a replacement vehicle for as long as their own vehicle is genuinely unavailable due to repairs or until the claim is resolved.
“You need comprehensive insurance to get a replacement vehicle.”
Not necessarily.
With I’m In The Right, eligible not-at-fault drivers may still qualify for an accident replacement vehicle even if they only have third-party insurance—or no insurance at all—provided the at-fault driver has third-party property or comprehensive insurance and relevant eligibility requirements are met.
Get the Right Support After an Accident
Ultimately, what an at-fault driver pays—and how that amount is recovered—depends on the circumstances of the accident and the insurance involved, but you don’t have to manage that process alone. I’m In The Right’s accident management team liaises with the at-fault insurer, coordinates repairs and towing, and recovers hire costs on your behalf, so eligible not-at-fault drivers can access a like-for-like replacement vehicle at no out-of-pocket cost. Contact I’m In The Right today to check your eligibility and get back on the road sooner.
