If you need to claim on your car insurance you’re not alone. According to the Insurance Council of Australia, around 1 in 7 people with car insurance make a claim in any given year and the average claim size is just over $5,200.
You can claim on your car insurance when you've suffered any loss or damage that your policy covers. And most insurers offer a fairly simple online claim process, that guides you through the steps to take.
There are a few things to do, though, before you start the claim process.
Immediate action if you’ve been in an accident
If you’ve been in an accident involving another car, person or property, it’s important that you stop at the scene and exchange details with the other person/s involved. This includes:
- contact details (name, address, phone number)
- Contact details for the car’s owner (if it’s not you)
- drivers’ licence and car registration
- insurance company
- car make, colour and model
If anyone's hurt, or there’s a public safety issue (such as a fuel spill), or if you feel unsafe, call 000. If you can, take photos of the scene.
Your insurer may also ask for:
- the location of the accident
- a description of what happened and any damage to cars or property (plus photos)
- a police report number (if the police attended or you reported your car stolen or damaged)
- details of the tow truck company (if one attended)
- contact details of any witnesses
Learn more about what you need to do if you’ve been in a traffic accident, from your state or territory service.
Things to do after the event
Check what you can claim for
The types of things that are covered by your car insurance will depend on the type of car insurance you have. Check your policy to find out what you can claim for. For example, if you have third party property damage, you can only claim for damage to other cars.
Also check if there are any exclusions to your cover. You may not be covered if the person driving your car was under the influence of alcohol or drugs, or if your car was unregistered.
The Financial Rights Legal Centre motor vehicle accident problem solver can help you navigate your car insurance when you have an accident.
Check if you have to pay an excess
Generally, you have to pay an excess when you make a claim whether you're at fault or not. Some policies will waive the excess in limited circumstances. The excess is the amount that you pay when you make a claim.
Check your policy for the excess amount and conditions where it might be waived.
Alisha has to pay an excess
Alisha's car was hit by a person driving a stolen car, who drove off after the accident. Alisha contacts her insurer to make a claim. They tell her she will have to pay the excess, even though the damage wasn't her fault. Alisha checks her policy. She finds a condition stating she has pay the excess if the 'at fault' party can't be found.
Decide whether to make a claim
Even if the damage is covered by your insurance policy you might decide that it’s not worthwhile to make a claim.
You might decide not claim if:
- the damage is only minor and it will be cheaper for you to pay for repairs yourself, instead of paying your insurer your excess amount
- the damage only minor and the cost of your future insurance premiums will increase if you make a claim. Learn more about no claim bonus on car insurance.
Marg scratches her car
Marg scratches her car pulling out of the driveway. She has comprehensive insurance, so she calls her insurer to talk about the damage and whether or not to make a claim. After sending photos, the insurer says repairs will probably cost $400. Marg’s excess for making a claim is $650 – which is more than the repairs. She decides to organise repairs herself and pay out of her own pocket, rather than making a claim, because that’s cheaper and she feels confident she can organise them herself.
If you make a claim
After you've made your claim, the insurer must contact you within 10 business days. They may accept or reject your claim or ask for more information.
If they reject your claim, they must do this in writing.
Your insurer may contact any other drivers, their insurers, and any witnesses who saw the accident.
They may also investigate to confirm the details of what happened and who was at fault.
If you're not happy with how your insurer has handled your claim, make a complaint to their Internal Dispute Resolution team. If you're still not happy, contact the Australian Financial Complaints Authority (AFCA).