Step 1. The other driver said that if I paid the excess it would be ok

The other party may offer to settle a claim if you pay the excess. The excess is the cost an insured person must pay their insurance company if they choose to make a claim with their insurer. You should not agree to pay the excess because:

  • you will get no benefit from paying the excess
  • the insurer can still legally pursue you for the full amount of the claim.
Note: Paying another person's excess should not be confused with settling a dispute ‘in full and final settlement’ of the claims they may have against you. You should get legal advice about what a full and final settlement should include for your matter. You can start by calling LawAccess NSW on 1300 888 529.

For further contact details and links see the Getting Help Fact Sheet.