Being involved in a car accident generally ranks as a pretty stressful and unwelcome life experience – even more so if you, or any of the other parties involved, are uninsured.
But what actually happens when you’re not at fault in a car accident without car insurance, or when the other driver isn’t insured? To help demystify the process, we’ve put together this extensive guide on how car insurance generally works in such situations. We’ll also outline some important steps to take after a car crash and explain how to make a car insurance claim when you’re not at fault.
What happens if you’re involved in a car crash without insurance?
The answer to this might depend on two things: who is at fault, and what type of insurance – if any – the parties involved have. As the question of fault can often help determine who might be liable for damages after a car accident without car insurance, we’ll address this first.
Determining fault after a car accident
Working out who’s at fault after a car crash isn’t always straightforward and could depend on factors such as the type of crash and the circumstances surrounding it.
In some instances, the fault might be split, evenly or proportionally, between both involved parties. For this reason, fault determination will typically be the responsibility of your insurance company and/or legal representative.1 While determining fault can be relatively straightforward in some situations, certain factors – such as speeding – may require additional evidence, such as a fine or driving infringement notice, to help insurers establish liability.2
Here are some factors that may contribute to a driver being considered at fault:2
- They failed to keep a safe distance from the car travelling in front
- They failed to obey a traffic light or sign
- They didn’t keep a proper lookout
- They were drink driving
- They were speeding2
While emotions can understandably run high after a crash, Legal Aid NSW advises against admitting fault at the scene of an accident.3
Marni Jackson, Youi’s Head of Product – Vehicle and Lifestyle, agrees, adding that it’s best to try to stay calm, focus on exchanging details with the other parties involved and record what happened.
Youi’s Car Accident Checklist outlines some of the key steps to take immediately after an accident. You can download it and keep a copy on your phone or in your glovebox, so you have it on hand.
Now let’s look at three different scenarios to examine the liability of parties involved, including a car accident without insurance when you’re not at fault.
Scenario #1: I have Comprehensive car insurance, but the other driver is uninsured
“If you have Comprehensive car insurance with Youi, and an uninsured driver hits your car, you can claim for the cost to replace or repair your vehicle,” says Jackson.
“That’s because our Comprehensive policies include cover for accidental damage as an insured event.”
When the accident is caused by an uninsured driver
“If you’re in an accident caused by an uninsured third party and have Youi Comprehensive cover, we’ll repair your car and pursue the uninsured driver on your behalf to recover the cost of your repairs,” says Jackson.
“Plus, if you can provide the required details of the other driver, we’ll waive your claim excess and keep you moving by providing a hire car while we process your claim.”4
When the accident is your fault
If you’re deemed to be the driver at fault in a car accident, you’ll likely have to pay an excess, but the cost of repairing or replacing your car and the uninsured driver’s vehicle will usually be covered.4
“With a Youi Comprehensive car insurance policy, we’ll cover you for up to $20 million in legal liability if your car causes damage to someone else’s property in the accident,” adds Jackson.
Scenario #2: I have Third Party Fire & Theft or Third Party Property Only insurance, and the other driver is uninsured
If you’re in a car accident and found to be at fault, Third Party insurance generally covers your legal liability for the damage to the other car or property. However, you’ll usually need to pay an excess in this scenario.
A Youi Third Party Fire & Theft or Third Party Property Only car insurance policy includes up to $20 million cover for damage to someone else’s property caused by your car.5
“However, with these policies, you typically won’t be able to claim for any damage to your own vehicle,” Jackson explains.
When you’re not at fault and have Third Party Fire & Theft or Third Party Property Only insurance
Had a car accident that’s not your fault, but the other driver is uninsured? They may be personally responsible for the reasonable cost of repairing or replacing damage to your vehicle.6
“Youi’s Third Party Fire & Theft and Third Party Property Only car insurance policies include up to $5,000 cover for damage to your car caused by an uninsured driver, provided you can give us the other driver’s details,” says Jackson.
If your repair costs exceed $5,000 or you choose not to claim under your Third Party policy, you may need to negotiate a settlement yourself with the other driver. This can be expensive, time-consuming and, ultimately, not always successful. In this situation, the Financial Rights Legal Centre recommends seeking professional legal advice on the best way to proceed with your claim.6
Scenario #3: I have no car insurance and someone hit me who is also uninsured.
If you’re in a car crash without insurance and the other driver is also uninsured, neither driver will be able to make a claim. So, can you actually settle a car accident without insurance?
The answer is yes, you can – but the cost of any repairs will likely need to be settled directly between you and any other parties involved, according to the Financial Rights Legal Centre.6
If you’re at fault, you may be responsible for paying for the reasonable repair of the other vehicle, which is generally either the cost to repair the car or its market value – whichever is lower.6 You could also be required to cover other fees, such as towing costs, rental car hire and the replacement of other personal property damaged in the incident.7
The other party may use a debt collector to recover these costs, and they have six years – three in the Northern Territory – in which to take the matter to court.6
If you’re deemed not-at-fault, the other driver will likely be responsible for the cost of repairing or replacing your car. You may have to negotiate a payment with the other driver or pursue the matter in court.6
Regardless of who appears to be at fault, if you’re in a car accident without car insurance and an uninsured driver hits your vehicle, it could be a good idea to seek legal advice. However, it’s possible the damage to your vehicle will be worth less than the cost of pursuing reimbursement, so it might help to keep this in mind before deciding on a course of action.
Can you make a claim without insurance in Australia?
In Australia, if you’re in a car accident without car insurance, you can’t make a claim through an insurer. However, if you’re not at fault and the other driver - or vehicle owner - has insurance, you may be able to access repair, towing and other costs through their insurance company. You can’t make a claim with them directly, as the insurer has no contract with you.6 You could ask the at-fault driver for their insurer’s details and contact them directly to inform them you have a claim against their customer. The insurer may offer to negotiate with you or arrange for an assessment of your vehicle.6
If another driver believes you’re at fault for an accident and you don’t have insurance, you may receive a letter of demand from them or their insurer to cover the reasonable costs of the damage to their vehicle. If you want to dispute a demand for payment or are having any other difficulties after a car crash without insurance, you may wish to seek out legal advice. A great place to start is by finding your local community legal centre or by getting in touch with your state or territory Legal Aid, listed below:6
- Legal Aid New South Wales
- Victoria Legal Aid
- Legal Aid Queensland
- Legal Aid Western Australia
- Legal Services Commission South Australia
- Tasmania Legal Aid
- Legal Aid ACT
- Legal Aid NT
Financial difficulties following an accident
If you’re facing financial difficulties, it could mean you’re not able settle a debt with another insurer. The General Insurance Code of Practice outlines insurers’ obligations to people experiencing financial hardship, which could include arranging a reduced payment amount or a repayment schedule that accounts for your circumstances.8
This can apply whether you’re fully insured and unable to pay your excess, or have no car insurance and have received demands from another insurer. Get in touch with the relevant insurer directly to find out how they might be able to support you with financial hardship.8
What happens in a hit-and-run?
If another vehicle hit your car and left the scene of the accident and the damage is substantial, it’s generally recommended that you contact the police immediately and file a report.9 Legal Aid Victoria recommends taking the time to carefully note all the details of the incident, such as time and date, location, the speed you were travelling at, the weather conditions and the contact details of any witnesses.10
If you’re insured, you’ll probably also want to let your insurer know as soon as possible.13 Whether damage will be covered can depend on a number of factors, including your policy type, whether the other driver can be identified and whether they’re insured.
If you have no car insurance and someone hits your vehicle without stopping, your options are unfortunately rather limited. However, if you were able to obtain the car’s license plate, you may be able to find out the details of the registered operator. You can submit an access application to your state or territory’s transport department10 and then issue them with a letter of demand.8
What is Compulsory Third Party (CTP) insurance
CTP insurance is a required insurance in all Australian states and territories – usually paid when you register your vehicle. In New South Wales, this type of insurance is also called Green Slip insurance. However, it’s not always clear when and where CTP comes in.
CTP insurance helps prevent drivers and car owners from being held financially responsible if they injure or kill someone in a car accident.11 It also means that if you’re hurt in an accident that’s not your fault, you may be able to claim for treatment and care expenses, and even lost income if you can’t work.12
In Victoria, Tasmania, the Australian Capital Territory, New South Wales and the Northern Territory, at-fault drivers can also make a CTP claim if they’re injured in an accident.13
CTP doesn’t cover damage to property or vehicles.16 That‘s where Comprehensive, Third Party Fire & Theft or Third Party Property Only insurance policies come in.
So, in short, there are some options available to you if you’re in a car accident without car insurance, but having insurance may make it easier to get back on the road sooner. Explore our you-shaped car insurance options to find out if they’re the right fit for you, or consider starting a quote today.
The laws of each state and territory vary, and there may be different rules and requirements for people involved in a motor vehicle accident. We recommend that you acquaint yourself with your obligations before travelling. If in doubt – call 000.
1 Source: NSW Police Force – Crash Reporting FAQs
2 Source: Legal Aid NSW – Who is at fault in a car accident?
3 Source: Legal Aid NSW – Who is responsible?
4 Available with Comprehensive policies. For more details, see the Car PDS.
5 Available with Third Party Fire & Theft and Third Party Property Only policies. Limits and conditions apply. See the PDS for full details.
6 Source: Financial Rights Legal Centre – Car Accident when Uninsured, January 2024
7 Source: Canstar – What happens when you have a car accident without insurance?, April 2025
8 Source: Insurance Council of Australia – Vulnerability and financial hardship
9 Source: CarsGuide – Someone hit my parked car and didn't leave a note. What can I do?, May 2025
10 Source: Vic Legal Aid – Driving and accidents, September 2025
11 Source: Motor Accident Insurance Commission – About CTP insurance
12 Source: NSW Government – What you can claim
13 Source: NSW Government – Interstate (non-NSW) crashes and CTP insurance claims
