I was offered an AAMI excess payment plan, do I need to pay it if I was not at fault?

14 October 2026

I was offered an AAMI excess payment plan, do I need to pay it if I was not at fault?

If AAMI has assessed your claim and discussed paying your excess, the first thing to check is whether you should be paying that excess at all.

For many Melbourne and Victoria drivers, the real issue is fault. If another driver caused the damage, you may want the repair costs pursued from that driver or their insurer instead of moving ahead on your own policy.

That matters because AAMI’s own published material says that if you pay an excess upfront and it is later decided that you were not at fault, AAMI may refund it. AAMI says, "If you pay an excess upfront and it’s later determined by us that you weren’t at fault, we’ll refund you accordingly if you can provide us the name and address of the at fault driver and registration of the at fault vehicle involved."

We help Victorian drivers with that not at fault path. That means managing the repair claim against the at fault driver’s insurer, arranging a replacement vehicle while your car is off the road, and helping you avoid claiming on your own policy where that approach fits your situation.

What AAMI says about paying an excess

AAMI publishes more than one way an excess may be handled.

One option AAMI publishes is direct payment before the claim is finalised. AAMI says, "you can pay the excess(es) directly to us before we finalise your claim;"

AAMI also publishes another option, where the excess is taken out of the claim payment instead. Its published wording says, "the excess(es) can be deducted from the amount we pay you for your claim (if any)."

If you have been offered extra time to deal with the amount, AAMI’s financial hardship policy also lists support options that include "delay or extend payment terms" and "deduct an excess from a claim amount (cash settlement)".

If you have been offered a payment plan, check the exact wording you were sent and ask AAMI to point you to the terms that apply to your claim. Your own paperwork matters here.

Does the excess have to be paid before repairs start?

AAMI’s claims page says, "Once the AAMI Approved Repair Partner has assessed the damage, they can usually begin repairs right away and we will keep you updated on the progress of your repairs."

That tells you repairs can usually begin after assessment by its repair partner. Separately, AAMI also publishes that an excess can be paid directly before claim finalisation, or deducted from a claim payment if there is one.

What this means for you in practice is simple. Do not assume that being quoted an excess automatically answers the fault question. If you were not at fault, you should sort that out before you commit yourself to a payment arrangement that may not have been necessary.

What AAMI says if you were not at fault

AAMI’s published position is that an excess paid upfront can be refunded later if AAMI determines that you were not at fault and you can provide the at fault driver’s name and address, plus the registration of the at fault vehicle.

That is why the other driver’s details matter so much. Keep them ready, along with any claim reference, photos, and anything else that helps show how the collision happened.

If you are in Victoria, you may be able to pursue the repair costs from the at fault side

For Victorian drivers, especially uninsured drivers and drivers who do not want to claim on their own policy, the published consumer guidance is clear that recovery can be pursued from the other side.

Financial Rights says, "You can chase the other driver/owner (or their insurer) to pay for the reasonable costs of damage."

It also says, "Contact the insurer and tell them you have a claim against their customer."

That is different from making a claim under the other driver’s policy. Financial Rights explains, "You cannot ‘claim’ on the other driver/owner’s insurance directly, their insurer has no contract with you."

If the insurer tries to steer the discussion in a way you do not agree with, the same source says, "Instead of agreeing to what the insurer suggests, you can send the insurance company a letter of demand quoting their customer’s details and claim number."

And before you argue about the amount, you need to know the repair cost. Victoria Legal Aid says, "Get a quote to find out how much the vehicle will cost to repair."

If the matter still does not resolve, Financial Rights says, "If that doesn’t work, you can go to court or a special car accident tribunal (available in some states)."

How we handle a not at fault claim in Melbourne and Victoria

We work with drivers and business owners across Melbourne and Victoria when another driver caused the damage.

Our role is to manage the practical side of the not at fault process:

• recover the cost of repairs from the at fault driver’s insurer
• arrange repairs
• arrange a replacement vehicle while your car is off the road
• manage the claim so you do not need to claim on your own policy where that approach fits your circumstances

This can be relevant if you are:

• a not at fault driver
• uninsured
• needing vehicle repairs after the collision
• a business owner whose vehicle was hit
• managing fleet or business vehicles

Some matters still need to be assessed on their own facts, especially where fault is disputed or the incident involves more than one vehicle.

What to do before accepting the AAMI payment plan

Before you agree to spread an excess payment, stop and check the fault position first.

Make sure you have:

• the other driver’s name and address
• the other vehicle’s registration
• any insurer details or claim number you have been given
• photos and crash details
• a repair quote or inspection pathway

If you were not at fault, your next step may be to pursue the repair costs from the at fault side instead of committing to an excess under your own policy.

If you want us to assess whether your matter fits a not at fault claim in Melbourne or elsewhere in Victoria, contact us before you accept the payment plan.

Call 0495 032 111