Small Accident Became a Claim in Australia

My son was involved in a very minor incident late last year. He was reversing out of his mate's driveway and made a minor contact with a car across the road. He caused a minor graze and a small dent. He was able to remove the paint from the woman's car by applying a bit of polish, but left a small dent. He told her not to go to her insurance company as he will get his mate to have a look at it.

Well apparently she went ahead and got it fixed herself and made an insurance claim. Now her insurance company is chasing my son for $750.00. I am not sure whether that is the cost of the repair or her no claim bonus.

Where does he stand in this situation?

Answer:

Since you are writing me from Australia, I will answer your question in general -- but any legal opinions will have to come from a lawyer local to you.

Once the woman who owned the car made a claim against her insurance, and passed on your son's information, the insurer will pursue your son to reclaim their costs. While she may have agreed to keep this between them, once she has gone to the insurer and the insurer has paid for a repair (or already paid a "no claim" bonus), then they will seek to get their costs paid if possible.

I suspect your son will have no recourse but to pay the insurer, unless he wants further legal troubles.
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