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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. ami.co.nz

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. icnz.org.nz

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 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

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 offers a free service for eligible complaints involving its members. govt.nz, ombudsman.parliament.nz

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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.