# DP-P01-M-K: Someone crashed into our family car while it was parked. Why does our insurer say we might have to pay an excess?

Collected 11 October 2026

[Car insurance study](https://nzbrands.ai/research/insurance/car-insurance)

## ChatGPT

Answer ID: c056eb5c-116c-475a-95e0-5e1994286b10

I’m sorry that happened to your family car. It’s frustrating to be told you might have to pay an excess when someone else caused the damage, especially when your car was simply parked.

**In New Zealand, you may have to pay an insurance excess even if another driver hit your parked car and you weren't at fault.** The key issue is usually whether your insurer can identify the responsible driver and recover the costs from them, along with the terms of your particular policy.

Here’s why your insurer might be saying this, and what you can do about it.

## 1. Why might you have to pay an excess?

There are three common reasons.

### A. The driver who hit your car hasn't been identified

If someone hit your parked car and drove away, your insurer may not know who was responsible.

Even if it's obvious that your car was stationary and you did nothing wrong, your insurer may still require you to pay the excess because it cannot recover the repair costs from the other driver.

For example:
- Your car is parked outside your house.
- Another driver hits it and drives away.
- You make a claim with your insurer.
- Your insurer covers the damage under your policy but asks you to pay your excess.

If the driver is subsequently identified, your insurer may reconsider whether you need to pay the excess, depending on your policy.

### B. The other driver has been identified, but hasn't admitted responsibility

Some New Zealand insurers require the other driver to acknowledge their involvement in the accident before waiving or refunding your excess.

For example, AMI says it can waive the excess when it can establish that your driver was completely free of blame, you provide the other driver's registration number and name and address, and the other driver acknowledges their involvement. Other insurers have their own policy conditions. [Source: AMI](https://www.ami.co.nz/faqs/will-i-have-to-pay-the-excess-if-a-motor-accident-isnt-my-fault). [ami.co.nz](https://www.ami.co.nz/faqs/will-i-have-to-pay-the-excess-if-a-motor-accident-isnt-my-fault?utm_source=chatgpt.com)

This means identifying the other car isn't necessarily enough if the driver disputes what happened.

### C. Your policy requires you to pay the excess initially

An excess is the amount you agree to contribute towards a claim.

Some insurers require you to pay it first, even when you weren't at fault. They may refund it later if they establish that another driver was entirely responsible and the conditions in your policy have been met.

The Insurance Council of New Zealand explains that being not at fault doesn't automatically mean you won't have to pay an excess. [Source: ICNZ](https://www.icnz.org.nz/wp-content/uploads/2025/07/ICNZ-Consumer-Guide-2025-%E2%80%93-Excesses.pdf). [icnz.org.nz](https://www.icnz.org.nz/wp-content/uploads/2025/07/ICNZ-Consumer-Guide-2025-%E2%80%93-Excesses.pdf?utm_source=chatgpt.com)

## 2. What if your car was parked legally and you weren't even in it?

This is an important distinction.

If your car was parked and unattended when another driver crashed into it, you couldn't have contributed through your driving at that moment.

However, **being clearly not at fault doesn't automatically remove the excess under every New Zealand insurance policy.**

Your insurer may still need to establish:
- Who was driving the other vehicle.
- Whether the driver accepts responsibility or there is sufficient evidence to establish fault.
- Whether your policy allows the excess to be waived or refunded in those circumstances.

For example, [AA Insurance's policy wording](https://www.aainsurance.co.nz/manage-policy/policy-documents/third-party-car-insurance-policy-document) sets out conditions for refunding an excess, including identifying the other driver and vehicle and establishing that the other driver was responsible. Your insurer's requirements may differ. [aainsurance.co.nz](https://www.aainsurance.co.nz/manage-policy/policy-documents/third-party-car-insurance-policy-document?utm_source=chatgpt.com)

## 3. What should you do now?

I'd suggest taking these four steps before agreeing to pay anything.

**Step 1: Ask why the excess is being applied.**

Ask your insurer this question:

"Given that our car was parked and we weren't at fault, could you please explain why an excess applies to our claim? Is this because the other driver hasn't been identified, hasn't accepted responsibility, or because of a specific condition in our policy?"

This should help clarify whether the problem is missing information or a policy requirement.

**Step 2: Check whether the other driver can be identified.**

If you haven't already, gather any available evidence, including:
- The other vehicle's registration number.
- The driver's name and contact details, if known.
- Photographs of the damage and the scene.
- CCTV footage or dashcam footage.
- Contact details for any witnesses.

If the driver fled the scene, check whether nearby homes or businesses have CCTV footage that might identify the vehicle.

**Step 3: Ask whether the excess can be refunded.**

Even if the insurer requires you to pay the excess initially, ask:

"If we pay the excess now, will you refund it once the other driver has been identified and responsibility established?"

Ask them to explain the exact conditions you must meet.

**Step 4: Challenge the decision if it doesn't seem right.**

If the insurer cannot clearly explain why the excess applies, ask it to review the decision against your policy wording.

If you're still unhappy, you can make a formal complaint through the insurer's complaints process. If that doesn't resolve the issue, you may be able to take the complaint to the insurer's independent dispute resolution scheme. In New Zealand, the [Insurance & Financial Services Ombudsman Scheme](https://www.ifso.nz/) offers a free service for eligible complaints involving its members. [govt.nz](https://www.govt.nz/browse/consumer-rights-and-credit-record/how-to-complain/complain-about-your-financial-services-provider/?utm_source=chatgpt.com), [ombudsman.parliament.nz](https://www.ombudsman.parliament.nz/others-who-can-help/complaints-a-z/insurance-financial-services-ombudsman-scheme?utm_source=chatgpt.com)

---

## 4. Can I help you work out whether you should have to pay?

I can give you a more specific answer if you tell me two things.

**1. Which insurance company covers your car?**
For example, AMI, AA Insurance, State, Tower, Cove or another insurer.

**2. Do you know who hit your parked car?**
- **A.** Yes, we know who the driver is, and they accept responsibility.
- **B.** We know who the driver is, but they dispute responsibility.
- **C.** We have the other car's registration number, but don't know who was driving.
- **D.** The driver hit our car and drove away, and we don't know who it was.

With those two details, I can explain what your insurer's rules are likely to mean for your situation and whether you may be able to get the excess waived or refunded.

## Gemini

Answer ID: 28667e15-1760-455c-8749-df3191790a8a

When your car is hit while parked, it can be frustrating to hear that you might still need to pay an excess. Under New Zealand insurance policies, insurers generally require you to pay your standard excess upfront unless specific conditions are met. 

### Why Your Insurer May Ask for an Excess

* **The Third Party Cannot Be Identified (Hit-and-Run):** This is the most common reason. To waive or refund an excess, New Zealand insurers (such as AA Insurance, AMI, Tower, State, etc.) typically require the full details of the other driver—including their name, contact information, and vehicle registration number. If someone crashed into your parked car and drove off without leaving a note, your insurer has no one to recover the costs from, meaning the claim defaults to your standard policy excess.
* **Liability Cannot Be Proved:** Even if you have the other party’s details, your insurer needs to be legally satisfied that the other driver was entirely (or mostly) at fault. If liability is disputed or unclear, the insurer may initially apply the excess.
* **Standard Claims Process:** Most New Zealand comprehensive car insurance policies work on the rule that you must pay your agreed excess for any claim. The insurer will later refund or waive this excess *only* after they have successfully investigated the accident, confirmed another named party was at fault, and established that they can recover the costs.

---

### How to Avoid Paying the Excess

To give yourself the best chance of having your excess waived or refunded, take the following steps:

* **Gather Evidence:** Check if any nearby houses, security cameras, or businesses captured the incident on CCTV. If neighbours saw anything, ask for their statements or dashcam footage.
* **File a Police Report:** If it was a hit-and-run, report the incident to the New Zealand Police (via their 105 non-emergency service or online) to get a file number. Insurers often require this for hit-and-run claims.
* **Provide Full Details:** If a note was left or you tracked down the driver, provide their full name, phone number, license plate, and insurance details to your claims handler immediately. 

*Would you like to know more about how your specific insurer handles hit-and-run claims or no-claims bonuses?*

## AI Overviews

Answer ID: 4a2b4a38-4589-445f-a0c2-559420b9668f

It is incredibly frustrating to deal with a damaged car when you did absolutely nothing wrong.

In New Zealand, **you usually have to pay an excess initially because your insurer needs absolute proof that you were not at fault and requires the other driver's details to recover the costs.**

Here is why your insurer is asking for an excess right now, and how you can get it waived or refunded.

1\. The Standard "At-Fault" Rule

Insurance policies are legal contracts. Most standard policies state that an excess applies to _all_ claims unless a specific exemption is met. Until the insurer confirms those exemptions, the default rule is that the excess must be paid to get the repairs started.

2\. What Insurers Need to Waive the Excess

For an insurer to classify a claim as an **"innocent party" or "no-fault" claim** (which waives the excess), you generally must provide:

 * **The identity of the other driver:** You need their name, phone number, registration number, and ideally their address or insurance details.

 * **Admission or proof of fault:** It must be clear that the other driver was 100% responsible. A parked car is almost always considered 100% not at fault.

3\. The "Hit and Run" Problem

If the person hit your parked car and **drove off without leaving their details** , your insurer cannot recover the repair costs from them or their insurance company. Because your insurer has to foot the entire bill themselves, they will require you to pay your policy excess.

4\. It Might Be a Refundable Deposit

If you _do_ know who hit you, but your insurer is still asking for the excess, they are likely treating it as a temporary deposit. They will often collect the excess to get your car into the panel shop immediately, and then **refund it to you** once they successfully recover the money from the at-fault driver or the other insurance company.

* * *

How to proceed next

To help you get this sorted, let me know:

 * Do you have the **contact details or registration number** of the person who hit your car?

 * Did anyone **witness the accident** , or is there **CCTV/dashcam footage** available?

 * Who is your **insurance provider**?

I can give you specific advice on how to handle the claim based on your situation.

## Google AI Mode

Answer ID: 7b2b2607-ed20-44d4-ac43-c493b7b74b52

It can feel deeply unfair to pay an excess when your car was safely parked and completely stationary. In _New Zealand_ , insurance companies typically require you to pay your excess upfront when you make a claim, regardless of who caused the damage.

Your insurer might ask you to pay the excess for a few specific reasons:

 * * **The at-fault driver cannot be identified:** If a hit-and-run driver left without a note or details, or if there are no witnesses/cctv footage, your insurer has no third party to recover costs from. Without a liable other party, it is treated as an unidentifiable-driver claim, meaning the excess applies.

 * **The other driver is uninsured or disputing fault:** Even if you know who hit the car, recovery takes time. If the other driver doesn't have insurance or denies responsibility, your insurer has to foot the bill first. Many policies state you must pay your excess until liability is officially accepted or recovered from the other party.

 * **Upfront payment policy standard:** Most NZ insurers operate on a rule where the excess is paid at the start of the claim process. [MoneyHub NZ]

 * **When you get it back:** If your insurer manages to successfully identify, contact, and recover the full costs from the 100% at-fault driver (or their insurance company), your excess will typically be refunded or waived.

 *

If you'd like, let me know:

 * Do you have the **name, contact info, or license plate** of the driver who hit your car?
 * **Has the other driver or their insurer** accepted fault yet?

I can help you figure out if your excess should be refunded or what steps to take next with your provider.