Step 1. I agree to the amount without an itemised invoice/quote and want to offer a lump sum
If you agree to the amount without an itemised invoice/quote and are able to pay a lump sum, even if it is less than the amount claimed, you can make an offer in full and final settlement. Confirm any settlement in writing You should always get any settlement confirmed in writing. You should also be clear on what it is you are settling – is it all losses arising from the accident, or just the cost of repairs, or just hire car costs. If you only settle the repair cost, you can find yourself being chased later for other costs (e.g. hire car) from the insurer, or the other party directly. To find out how to confirm a settlement see:
- Put it in writing on the LawAccess NSW website
- Sample terms of settlement on the LawAccess NSW website.
- Sample Letter to the other party’s insurer offering to pay an insurance debt on our website
- Responding to a Statement of Claim on the LawAccess NSW website.
If you have received court documents, you should get legal advice. You can start by contacting LawAccess NSW on 1300 888 529. You may be able to get free legal assistance from Legal Aid NSW or your local Community Legal Centre. If you are unable to get free legal assistance, you may need to speak to a private lawyer. To find a private solicitor, contact the NSW Law Society. Financial hardship If you are experiencing financial hardship and you can’t afford to pay:
- If you are insured (comprehensive or third party property insurance), you should consider lodging a claim with your insurer immediately. If you can’t afford to pay your excess, select the option “I can’t afford my excess” below.
- If you can’t claim on your insurance, you should speak to a Financial Counsellor. To speak to a free Financial Counsellor, call the National Debt Helpline on 1800 007 007. You may be able to negotiate a reduced amount, payment plan or a release from the liability under the General Insurance Code of Practice.
- Sample letter to insurer requesting a release from debt on our website