At Fault - Not At Fault Car Accident Compensation

If you’ve been involved in a car accident, understanding the difference between being at fault, no-fault, and Compulsory Third Party (CTP) compensation schemes, and when you need a lawyer, is crucial.

What if I was at fault in an accident?

If you were partly or entirely at fault in a car accident, you can still make a compensation claim under your state or territory’s compensation scheme. You can seek compensation if you’ve suffered serious injuries, have been left impaired, or are unable to work due to your injuries.

Fault refers to the failure of a driver or vehicle owner to exercise reasonable care, resulting in injury or loss to another person.

What if I was not at fault in an accident?

Under most states and territory compensation schemes, you may be entitled to basic statutory benefits, including medical treatment and income support regardless of who was at fault.

However, if you weren’t at fault and have suffered a serious injury or impairment, it’s a good idea to engage a personal injury lawyer if you wish to pursue a common law claim. This is especially important if you wish to obtain compensation for areas such as pain and suffering, as well as loss of past and future earnings.

Common law claims often result in significantly higher compensation and can protect you against unforeseen complications in the future.

No-Fault Insurance Scheme

Victoria, Tasmania, and the Northern Territory primarily operate 'no-fault' compensation schemes to varying degrees. These schemes allow individuals injured in car accidents to claim for medical treatment and rehabilitation costs, regardless of who was at fault and are largely funded by motor vehicle registration fees.

For instance, if you're injured in a car accident in Victoria, you can make a claim through the Transport Accident Commission (TAC) seeking to cover costs such as:

• Medical treatment
• Rehabilitation services (e.g., physiotherapy, osteopathy, occupational therapy)
• Replacement of damaged glasses or dentures
• Lost wages
• Return-to-work support
• Lump sum payments (if eligible)
• Application fee for a Medical Treatment Visa (if required)

If you wish to pursue a common law claim, you need to prove the other party was at fault. Common law claims often return considerably higher compensation and cover:

In contrast, Western Australia, operate primarily under a fault-based system, requiring drivers to prove the other party was at fault to seek compensation if you’re not seriously injured. However, like all states and territories, you can still claim statutory benefits if your injury is determined to be catastrophic. A personal injury lawyer can guide you to the right resources to help make this determination.

Compulsory Third Party (CTP) Schemes

New South Wales, South Australia, Queensland, and the Australian Capital Territory (ACT) operate hybrid systems that combine elements of both no-fault and fault-based schemes. In these states and territories, CTP insurance is mandatory and covers drivers for compensation costs related to injuries caused by car accidents, regardless of who was at fault to a certain extent.

CTP insurance, which is sometimes included in vehicle registration fees, is underwritten by private insurers across all states and territories. It generally covers the at-fault driver for the injuries they cause to others, but not their own injuries unless the system provides a no-fault component.

If you are catastrophically or permanently injured in a car accident, compensation schemes in all states and territories provide coverage for necessary and reasonable lifetime treatment, care, and support, regardless of fault.

Find out more about Compulsory Third Party (CTP) Schemes.

When is a driver “at fault”?

A driver is considered at fault when they fail to take reasonable care to ensure the safety of others on the road, resulting in injury or harm.

Examples of actions (or inactions) that can lead to fault include:

• Speeding: if a driver is exceeding the legal limit or failing to slow down at a turn or traffic light.
• Fatigue or drowsiness: fatigue is a leading cause of car accidents, with as many as 20 to 30% of accidents caused by drivers low on sleep or quality of sleep.
• Drug or alcohol use: if a driver returns a blood alcohol level above 0.05 (zero for learners and P-platers) or if drugs are present in the blood.
• Distracted driving: texting, looking at phones, eating, or fiddling with the radio are common causes of accidents and can be defined as negligent if they satisfy one of three areas:
  i) Manual distraction: texting, scrolling on smart phone, etc.
  ii) Visual distraction: looking at a screen, such as a GPS or smart phone/smart watch while driving
  iii) Cognitive distraction: talking on phone or to passenger, leading to an accident

How we can help

We have a wealth of experience in motor vehicle accidents claims, helping thousands of clients secure the full compensation they deserve under the law. Unlike state commissions insurers, our lawyers are committed to helping you maximise your entitlements, ensuring you receive more than just basic statutory benefits.

With most of our claims settled out of court under our No Win, No Fee* arrangements, you can rest assured your claim is looked after, without worrying about the cost. We take the stress out of the legal process so you can focus on your recovery. Our dedicated team, backed by a nationwide network, is ready to support you every step of the way, no matter how complex your case.

With Slaters, you can be confident that your rights are protected and that you're getting the compensation you may be entitled to move forward.

What to expect

Navigating the aftermath of a motor vehicle accident can be daunting, but knowing the process can make all the difference.

Learn more about what to expect.

Frequently asked questions

States

While there are similarities between no fault, fault based, and CTP compensation schemes across Australia, it’s important to get the relevant information to your claim as soon as possible. Therefore, we recommend you visit your state’s insurance authority website to get all the details.

If you decide to pursue a claim, our lawyers can guide you through the process to help ensure you get the full range of entitlements under the law – not just what your insurer tells you.