A car accident can feel overwhelming, even when no one is injured and the damage to vehicles or property is minor. Often, the experience will also include disputes about who is at fault, the cost of damage caused and the complicated process of making an insurance claim from the respective insurers.
Regardless of who is at fault, understanding beforehand the procedure for making the insurance claim and knowing what to do and not do when involved in an accident can save you time, money and effort.
When to Lodge a Claim?
If you’re involved in a car accident, ideally you need to report the incident to your insurance provider as soon as possible.
There is no specified time limit for submitting car insurance claims in Australia, particularly when it comes to comprehensive policies, but most insurers expect you to lodge a claim soon after an accident.
There is an exception in case of compulsory third-party (CTP) insurance because it deals with injuries to others. Most CTP insurance providers want claims to be filed within a month of the accident to ensure injured persons get the benefits they are entitled to as soon as possible.
Similarly, time limits with police event numbers can also dictate the timing of an insurance claim. Most states in Australia need you to report an accident, if serious enough, to the police within 28 days with the police event number then used for filing an insurance claim.
What To Do When You’re In a Car Accident?
The first thing to do after a car accident is to ensure everyone involved is safe and does not require immediate medical assistance.
If anyone is injured, you must call triple zero immediately for assistance, and apply first aid if possible. Emergency operators will alert the police and ambulance or fire services, as needed. Police will also attend a crash site if there are hazards on the road, traffic is obstructed or if a heavy vehicle is involved.
In case of a minor car collision where no one is injured, the parties can resolve the matter between themselves without involving the police.
Where it is possible to do so, move the vehicles to a safe location to exchange details. It is a good idea for the drivers to avoid accusing each other of being at fault and instead leave the matter to the insurers.
To assist with this task, exchange the vehicles’ registration information, drivers license details and contact information. You should also take photos of each vehicle with the registration plate as well as the damage to the vehicles, from different angles.
How to Lodge a Claim in Three Steps
While every insurer may have slightly different rules depending on the type of policy, there are fairly standard steps involved in lodging a car insurance claim:
- Gather information about the incident: To make a claim, you will need to provide information relating to the accident. This will involve details about the driver such as name, contact number, licence, address, etc., location and description of what happened, photographs, police report number, if any, and contact details of witnesses.
- Contact your insurer: You should get in touch with your insurer as soon as possible to let them know about the accident, and find out what you can claim for and determine how much excess (or up front payment) you need to pay. You may also be entitled to a hire car or accommodation, depending on your insurance level.
- Lodge a claim: The process for making a claim is generally provided on your policy document or the insurer’s website. You will generally need to fill out a claim form, which can usually be done online or using an app, over the phone or via mail or in person. You can often ask your insurer to start a claim to find out how much the repairs will cost.
Can I Choose My Repairer?
Insurance providers generally prefer to get repairs completed from their preferred service providers. There are advantages to this, with the ACCC saying that preferred repairer schemes may offer the benefit of timely and efficient repairs, and are helpful in managing payments and recovery costs with repairers.
The downside of this may sometimes be long waiting times, or the possibility of skimping on repair jobs in order to save costs.
Most car insurance policies provide an option to choose your own repairer after an accident, but this generally involves paying a higher premium.
If you opt for a local repairer outside your insurer’s preferred network, you need to first inform the insurer and get the repair costs approved before starting the work. Otherwise, you may have to pay from your own pocket if the insurer doesn’t agree with your choice of repairer.
If the insurer doesn’t agree with your choice of repairer, they can choose to settle your claim in cash for a value that they determine as reasonable, leaving you to pay the remaining difference out of your own pocket.
What If My Claim Is Rejected?
Car insurers are expected to respond to a claim within ten days, or otherwise inform the customer about how long the insurance assessment may take.
Unfortunately, insurance claims sometimes get rejected. This can generally be for any of the following reasons:
- You may have not disclosed or incorrectly disclosed some information, such as hiding any driving offences or existing damage to the vehicle.
- Your claim relates to an exclusion clause or specific circumstances where your cover does not apply, such as an underage driver or driving under the influence of drugs/alcohol.
- Your policy has been cancelled in the middle of the cover period for some reason including as non-payment of premiums.
- You have tried to deceive or commit fraud against the insurer.
In most cases, the insurer’s decision is not final. So the first step is to ask them to provide the reasons for rejection in writing and then to seek a review of their decision. You are well within your rights to ask for them to undertake an internal review and provide any additional evidence or arguments to support your insurance claim.
If the insurance provider again rejects your claim or the amount of settlement remains in dispute, you can seek a review by the Australian Financial Complaints Authority (AFCA), which is an industry-backed free and independent complaints service.
If this fails to resolve your complaint, you can also apply to a relevant tribunal or go to court. This will require you to seek private legal advice as it may involve extra legal costs.
Conclusion
Make A Car Insurance Claim In Australia understanding how to make a car insurance claim in Australia is essential for ensuring a smooth and efficient process in the event of an accident or incident. By familiarizing yourself with the necessary steps and requirements, you can minimize stress and expedite the resolution of your claim.
First and foremost, it’s crucial to promptly report the incident to your insurance provider and provide all relevant details, including the date, time, and location of the event, as well as any relevant documentation such as photos or witness statements. This initial step sets the foundation for the entire claims process and allows the insurer to begin assessing the situation promptly.
Throughout the claims process, maintain open communication with your insurance company and follow any instructions or requests they may have. Be prepared to provide additional information or documentation as needed to support your claim.
FAQs on How To Make A Car Insurance Claim In Australia?
How do I know if I should make a car insurance claim?
It’s generally advisable to make a claim if the cost of repairs exceeds your excess and the potential impact on your future premiums is acceptable to you.
How soon should I report an incident to my insurance company?
It’s best to report the incident to your insurer as soon as possible, ideally within 24 to 48 hours of the event.
What information do I need to provide when making a claim?
You’ll typically need to provide details such as the date, time, and location of the incident, along with any relevant documentation like photos, witness statements, and police reports.
Will making a claim affect my future premiums?
Making a claim could potentially affect your future premiums, depending on factors such as your claims history and the circumstances of the incident.
What if I’m not at fault for the accident?
If you’re not at fault, you may still need to make a claim through your own insurer initially, but they may seek to recover costs from the at-fault party’s insurer later.