# DI-M-K-01: The other driver's insurer wants me to settle the crash directly with them. Should I still tell my own car insurer?

Collected 11 October 2026

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

## ChatGPT

Answer ID: 5b4c9885-7dc0-4050-bf23-a261af353bd7

Yes — you should tell your own car insurer as soon as possible, even if the other driver's insurer wants you to settle directly with them.

In New Zealand, the safest approach is to notify your insurer about the crash before agreeing to pay anything or signing a settlement agreement. Consumer NZ recommends contacting your car insurer as soon as possible after an accident, and your policy may require you to notify them even if you don't intend to make a claim. [Car insurance buying guide](https://www.consumer.org.nz/money/insurance/car-insurance/guide)[Duty of Disclosure: What to Tell Your Insurer](https://www.icnz.org.nz/individuals/consumer-guides/things-you-need-to-tell-your-insurer/)

## Why you should tell your insurer

- Protect your cover. Your policy may require you to report accidents or potential claims. Failing to follow its conditions could affect your cover.
- Avoid paying more than you should. The other insurer's repair estimate or settlement demand may be negotiable or may need independent assessment.
- Get help with liability. Your insurer can advise you about responsibility for the crash and deal with the other insurer on your behalf if your policy covers it.
- Avoid an unfavourable settlement. Once you agree to a final settlement, it may be difficult to challenge or reopen it.

## What I recommend you do now

1. Contact your own insurer and explain that the other driver's insurer has approached you about settling directly. Ask whether they want you to lodge a claim or simply notify them.
2. Don't admit fault or agree to a settlement yet. Ask for the other insurer's demand in writing, including an itemised breakdown of the costs.
3. Keep all evidence — photos, messages, emails, repair estimates and details of what happened.
4. Check your policy conditions and follow your insurer's instructions before authorising repairs or making payments. [Car insurance buying guide](https://www.consumer.org.nz/money/insurance/car-insurance/guide)[Duty of Disclosure: What to Tell Your Insurer](https://www.icnz.org.nz/individuals/consumer-guides/things-you-need-to-tell-your-insurer/)

A direct settlement isn't necessarily wrong, especially for a minor crash, but you should understand the full amount you're agreeing to pay and whether the agreement releases you from any further claims.

## A quick question so I can guide you more specifically

Who does the other insurer say should pay?

- A. They're claiming you caused the crash and want you to pay for their customer's repairs.
- B. They accept their driver was at fault and want to pay for your car repairs directly.
- C. Fault is disputed, and they're offering a settlement to resolve it.
- D. Something else.

The best next step depends on which situation applies and whether you have comprehensive or third-party insurance.

## Gemini

Answer ID: 02daed2a-71f1-4e46-b60f-2edb871016f1

**Yes, you should still tell your own car insurer immediately,** even if the other driver or their insurer wants to handle or settle the crash directly. 

Under almost all New Zealand standard vehicle insurance policies, you are contractually required to notify your insurer of any accident or potential claim as soon as possible, regardless of who is at fault or whether you plan to claim. Failing to do so can give your insurer grounds to decline coverage if complications arise later.

### Why You Must Notify Your Insurer
* **Breach of Policy Conditions:** Most policies state that you must not admit liability, negotiate, or settle a claim independently without your insurer's consent. Agreeing to private arrangements behind their back can invalidate your policy.
* **Hidden Structural Damage:** What looks like a minor bumper scrape can often hide thousands of dollars in underlying structural or sensor damage once a panel is removed. If you settle cheaply out of pocket and find more damage later, you lose the legal right to ask for more money.
* **Protection and Leverage:** If you have comprehensive insurance, letting your insurer manage the process means they handle the communication, leverage their panel networks, and chase the other party or insurer on your behalf. 

### How to Handle the Situation
1. **Notify Your Insurer Anyway:** Call or log into your insurance provider's portal to log an incident report. State clearly that the other party has expressed a wish to settle privately, but you are logging the event to meet your policy notification requirements.
2. **Let Them Communicate:** If the other driver's insurer contacts you directly wanting to settle, you can inform them that your insurer has been notified and that all correspondence should go through your respective insurance companies. 
3. **Keep Your Options Open:** If you have comprehensive cover, you can still let your insurer fix your vehicle (subject to your excess, which they will try to recover later if you are not at fault). If the other driver genuinely wants to pay for it privately to avoid losing their no-claims bonus, they can choose to pay your insurer or your approved repairer directly, but the administrative safety net of your policy remains in place.

Would you like help figuring out what details you need to gather to file your notification?

## AI Overviews

Answer ID: 29fa6d6f-c55c-4a8c-82d7-8f21256798ac

Yes, **you must still inform your own car insurer** about the crash, even if the other driver’s insurance company has offered to settle with you directly.

Every standard motor policy in **New Zealand** includes a "duty of disclosure." This means you are legally obligated to notify your insurer of any accident or damage involving your vehicle.

Why You Must Tell Your Insurer

 * **Policy Voidance Risk:** Failing to report an accident is a breach of your insurance contract. If your insurer finds out later, they have the right to cancel your policy or refuse coverage for unrelated future claims.

 * **Protecting Yourself from Blame:** The other driver might tell their insurer a completely different version of events later on. If their insurer suddenly denies liability or claims you were at fault, it will be too late for your own insurer to investigate properly and defend you.

 * **Hidden Mechanical Damage:** A direct settlement offer usually covers visible damage. If a mechanic finds deeper, hidden structural issues during the repair, the other insurer might refuse to pay the extra costs. If you didn't log the accident with your own insurer right away, they might reject a subsequent claim to cover the difference.

How to Handle It

When you contact your insurance company, let them know you are **notifying them for information purposes only** and that you intend to settle directly with the third party.

As long as you are completely free of blame and can provide the other driver's details, lodging this notification will not affect your no-claims bonus or force you to pay an excess. It simply serves as an official record to protect your legal and financial rights.

To help me give you more relevant advice, **are you happy with the settlement amount** the other insurer is offering, or **do you suspect your car might be a write-off**?

## Google AI Mode

Answer ID: 82768ef7-e045-4d89-bf8e-042cf40b1d73

**Yes, you should still tell your own car insurer****.** Even if the other driver’s insurer reaches out to handle things directly, notifying your own insurance company as soon as possible is standard practice and critical for protecting your interests.

Why You Should Still Inform Your Insurer

 * * **Policy Conditions:** Almost all New Zealand vehicle insurance policies include a strict clause requiring you to notify them of any accident or incident as soon as possible, regardless of who was at fault or whether you intend to make a claim. Failing to notify them could breach your policy terms and jeopardize your cover if complications arise later.

 * **Professional Representation:** Dealing with another party's insurer on your own can be stressful and legally tricky. Letting your insurer handle it means you have professional advocates who deal with liability, repairs, and recoveries daily.

 * **Protecting Yourself from Liability:** If you attempt to negotiate or settle directly and inadvertently say or sign something that accepts partial blame, it can complicate or invalidate your own insurance protection.

 * **Handling the Recovery:** If you have comprehensive insurance, your insurer can manage your vehicle repairs right away and handle the financial recovery from the other driver's insurer behind the scenes. [CAB Youth Tool Kete]

 *

What You Should Do Next

 1. **Contact Your Insurer:** Give them a call or log the incident online to let them know you've been in a crash and that the other party's insurer has contacted you. Provide them with all the details, photos, and the contact details or claim number from the other driver.
 2. **Direct the Other Insurer:** You can politely inform the other driver’s insurer that you are passing their details and the file over to your own insurance company to manage. [CAB Youth Tool Kete]

If you'd like, let me know:

 * Do you have **comprehensive** or **third-party** insurance?
 * Has the other driver's insurer **accepted liability** yet?

I can give you a better idea of how your excess or no-claims bonus might be affected.