Aussie drivers reminded of little-known road rule that can score you a free car

Yahoo

12-05-2025

The average Australian driver travels more than 200 kilometres each week in their vehicle. For those who rely on their car for a daily commute, being involved in a car crash can be one of life's great inconveniences.
But if the crash wasn't your fault, there's no reason you should be left without an equally good car while yours is undergoing any repairs. In fact, you're legally entitled to one.
"About three in four people aren't aware of their right to drive after they're not at fault in an accident,' says Nicolas Rio, general manager at Right2Drive.
"It refers actually to quite an old law — the law of demurrage," he explained, with the term being borrowed from the shipping industry and its application to road accidents has even been upheld in the High Court of Australia. "The law still holds true today... if you've been in an accident and you're not at fault, you're legally entitled to be restored to the position before the accident," Rio told Yahoo News.
However, according to the company's research nearly three quarters (74 per cent) of Australian drivers are unaware of such a legally enshrined entitlement. Right2Drive claims since its inception, it has helped some 300,000 drivers with a free car across Australia and New Zealand, with the company then chasing up the insurance provider of the driver who was at fault to cover the costs of the loan car.
The company has compiled data on the types of crashes it responds to, revealing the most common trouble spots for motorists.
"We've got a very extensive data base of incidents and crashes from our propriety system... that represent non-fatal incidents," Rio said.
One of the details from crashes in NSW, for instance, is that drivers are about three times more likely to crash in a car park (14.7 per cent) compared to a roundabout (5.6).
There is one useful tip that could help you avoid being liable — reversing into car spots. That's because reversing out into a busy car park can be a common cause of crashes, and the reversing driver will almost always be deemed to be at fault.
An Aussie insurance broker previously warned drivers they should reverse into a parking spot because backing out with limited vision could increase the chance they're liable for a fender bender.
The Insurance Council of Australia has previously confirmed to Yahoo News Australia the little-known fact, that in most cases the reversing driver is automatically deemed to be the at-fault. But Rio said there are rare cases where that rule doesn't hold.
"We definitely have instances where people have been reversing and are not at fault," he said. "If someone opens a car door into a reversing vehicle, they [the reversing car] are not at fault," he said, for example.
The NSW focused data also showed rear-end collisions are the most common type of road crash at nearly 34 per cent of accidents, while single-lane roads were the most dangerous spots, accounting for nearly a quarter of crashes, followed by multi-lane roads, car parks, traffic lights, intersections and roundabouts.
This week is National Road Safety Week with the annual initiative bringing together government bodies and road safety organisations to address the high costs of road collisions and work to reduce them.
Professor Stuart Newstead, Director of the Monash University Accident Research Centre, on Monday highlighted the boon that has come from increased safety features and technology from car manufacturers.
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"Vehicle safety improvements have played a major role in reducing road trauma over the past 50 years. Safer vehicles not only protect occupants during crashes but increasingly help prevent crashes altogether," he said.
"However, there is still significant opportunity to reduce road trauma by encouraging safer vehicle choices, especially among younger and older drivers," he added.
Earlier this year, Yahoo highlighted research that showed young drivers can be overrepresented in road fatalities, in part because they are more likely to purchase older, less safe vehicles. Budget-conscious young drivers often prioritise affordability over safety features, leading them to purchase cars with outdated braking systems, lower crash safety ratings, and worn-out components.
"A key focus during National Road Safety Week should be how we can unlock this remaining potential [of vehicle improvements] to save lives," Prof Stuart said.
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