Australian law gives not-at-fault drivers significant rights. Most people don't exercise them — not because they don't exist, but because no one explains them clearly at the time they're needed most. If another driver caused an accident that involved your vehicle, you have rights that go well beyond what your own insurance policy provides.
Here's what you're entitled to under Victorian law and how to use those rights.
Your right to a replacement vehicle
If the accident wasn't your fault and another vehicle was involved, you may be entitled to a like-for-like replacement vehicle for the duration of your repairs. This is a common law right, not an insurance policy benefit — which means it exists independently of whether you have comprehensive cover.
The principle is straightforward: if someone else's negligence has deprived you of the use of your vehicle, the cost of restoring that use is a recoverable loss. A credit hire company provides the replacement vehicle upfront and then seeks to recover those costs from the at-fault driver or their insurer.
You do not pay the hire costs upfront where eligible. The hire company pursues recovery from the at-fault party on your behalf.
Your right to repairs at the at-fault driver's cost
You are entitled to have your vehicle repaired to its pre-accident condition at the at-fault party's expense, subject to the claim being accepted. This means the other driver — or more commonly their comprehensive insurer — bears the repair bill.
You do not have to go through your own insurer to exercise this right. Many not-at-fault drivers instinctively call their own insurer first, not realising that doing so may cost them their excess and affect their no-claims discount — when neither consequence was necessary.
Your right to choose your own repairer
In Victoria, you are not obliged to use a repairer nominated by the at-fault insurer. This is a right that insurers sometimes fail to make clear. You may choose your own licensed repairer, and the at-fault insurer must pay reasonable repair costs regardless of which repairer you use.
Do not let an at-fault insurer pressure you into using their preferred repairer if you have an existing relationship with a smash repairer you trust or have reason to believe their recommended repairer is not independent.
Your right not to use your own insurer
Many people instinctively contact their own insurer first after any accident. If you were not at fault, this may not be the best approach. Claiming on your own comprehensive policy means:
- Paying your policy excess (typically $500–$1,500) upfront, which you must later recover
- Potentially affecting your no-claims discount or bonus
- Leaving your insurer to manage recovery at their own pace, which may not align with your interests
You have the right to pursue the at-fault party directly, without involving your own insurer in the claim. This preserves your policy, your excess, and your no-claims history.
That said, notifying your own insurer that an accident has occurred is generally required under your policy terms — just because you notify them doesn't mean you have to lodge a claim through them.
What credit hire is and why it matters
Credit hire is the mechanism by which not-at-fault drivers access a replacement vehicle without upfront cost. A credit hire company:
- Provides a like-for-like replacement vehicle immediately
- Delivers it to your door — same-day across Melbourne metro where eligible
- Manages all correspondence with the at-fault insurer
- Seeks to recover costs from the at-fault party, not from you
Understanding this right means you never have to be without transport while a claim resolves — whether that takes two weeks or two months.
What you remain responsible for
While your rights as a not-at-fault driver are significant, they are not unlimited. During a credit hire period, you remain responsible for:
- Fuel for the replacement vehicle
- Tolls and parking incurred during the hire
- Any damage to the replacement vehicle during your use
- Obligations under your rental agreement with the hire company
The hire costs themselves are what the credit hire company seeks to recover from the at-fault insurer. Your day-to-day running costs while in the vehicle are yours to manage.
Rights that don't apply: clarifying common misconceptions
CTP insurance (TAC in Victoria): The Transport Accident Commission covers personal injury arising from road accidents. It does not cover property damage, vehicle repairs, or replacement car costs. Do not rely on CTP if your vehicle has been damaged.
Your own comprehensive insurer is not automatically responsible: Having comprehensive cover does not mean your insurer automatically handles damage caused by another driver. The primary liability sits with the at-fault party, and you may pursue them directly.
At-fault insurer "goodwill" offers: If the at-fault insurer offers you a hire car or a repair through their network, you are not required to accept those terms. You retain the right to independent arrangements.
To understand how these rights apply to your specific situation, visit 888 Car Hire's not-at-fault car hire page or our guide on whether you're entitled to a free replacement car in Victoria. You can also call us directly on 0423 022 881.