Car insurance claims

How to claim against someone else's car insurance

There are a lot of details to exchange in the event of an accident, so try familiarising yourself with the following details. Take them down on your phone or have some pre-filled forms in the car to make life easier.

Get photo evidence

Take picture and video evidence with your phone at the scene – this makes sure your insurer has all they need to successfully process your claim.

How to submit a car insurance claim

Gather information about the incident

Here's a checklist of what you'll need

• Information about the driver
• A description of what happened
• A police report number (if the police were at the incident)
• Contact details of any witnesses

Contact your insurer

Get in touch with your insurer as soon as possible to let them know that you were involved in a car accident and what happened. If you have comprehensive car insurance, you might be entitled to a hire car or accommodation, depending on what happened. They can also let you know if you need to pay an excess.

Submit your claim

You can usually do this in one of the following ways

1. Online or using an app
2. Over the phone
3. In the mail or in person

How long does it take for an insurance claim to be processed?

According to the General Insurance Code of Practice, your insurance provider has 10 business days from the day they receive your claim to respond with the outcome. If they need more time to decide, they will let you know in advance.

What to do if you're not at fault

Legal Aid recommends that you write a letter after the accident to let the other driver know you intend to make a claim against them.

This is a good idea if it's going to take a while to receive a repair quote. The other driver should then pass the letter on to their insurer – provided they have cover – unless they would rather pay for the damages personally.

You should then spend time getting at least two quotes for the cost of repairs so as to show they are fairly priced. Make photocopies of the quotes and keep hold of the originals. You should also add on any additional costs to do with the accident, such as towing costs.

Car insurance claim time limit in Australia

There usually isn't a fixed deadline for car insurance claims as some damage settlements can take years to be finalised. This means that while insurers don't generally set a time limit, they depend on your full cooperation, so you should let them know if you've been in an accident as soon as possible.

The main exception is with injury claims, which are dealt with through CTP insurance and can sometimes be sorted in as little as a month. This is to ensure injured people get the benefits they are entitled to as soon as possible.

There are often time limits with your Police Event Number. If you need to report the accident to the police, this usually has to be done within 28 days in most states.

Traps that could lead to your claim being rejected

If you don't follow the terms and conditions of your insurance policy, then insurers may reject your car insurance claim. Look for:

• Benefits. A common trap is to assume that a policy covers something when it doesn't. For example, you will probably need a comprehensive car insurance policy if you want to claim certain variety of types of damage, and cannot assume that you are covered for anything in specific.
• Exclusions. These are conditions where the policy will not pay out. Exclusions will typically apply for driving under the influence and otherwise being reckless behind the wheel, but there may be more specific ones such as exclusions for accidents that occur within a certain distance of your home, or beyond a certain amount.
• Your obligations. Not getting unapproved repairs and not offering to settle damage with other parties are two common obligations you will encounter in car insurance policies. Not following these can be used as valid grounds to decline a claim.

Who to contact if you are not satisfied with your claim

If you are not happy with how your insurer has handled your claim, and after going through your PDS believe you are in the right, then you can contact the Australian Financial Complaints Authority (AFCA) for a resolution.

Finder survey: How long do car insurance claims take to be settled?

FAQs about car insurance claims

• Is it worth making a claim on car insurance?

  If the costs involved run into thousands of dollars, it's worth making a car insurance claim. In some instances though, if the excess would cost more than the repair itself, then it's probably not worth it. Claiming can also impact your no claims bonus.

• What are the main steps to making a car insurance claim?

  • Get the driver's details
  • Gather evidence
  • Contact your insurer
  • Submit the documents to the insurer
  • Wait to hear the outcome of your claim

• How do car insurance claims work?

  Insurers need all the information outlined above because it helps them determine the validity of claims and who is at fault. Insurers may be particularly interested in the details of the incident, and the details of the other driver and their insurer.

  This is because insurers will typically attempt to recover costs from the at-fault party's insurers, when applicable, including the cost of damage, replacement rental car hire following an accident and other expenses. This, along with making sure you and your car are getting all the benefits your policy entitles you to, such as free repairs, free towing, emergency glass replacements and similar, are a significant part of what an insurer does.

  The steps taken by insurers when processing claims can include:

  • Recovery actions on your behalf. For example, if you've been injured in a car accident and the other driver was at fault, then your insurer can get in touch with the other drivers CTP insurance company on your behalf.
  • Contacting the other drivers and witnesses. Insurers will often take investigative actions to confirm the details of what happened and help establish who was at fault, if anyone.
  • Providing services. If you are eligible for emergency accommodation under the terms of your policy, for example, part of your insurer's claims process might be to book you a hotel room. The same goes for car repairs, towing and other services.

• Can you claim car insurance on tax?

  If you use your car for work, you may be able to claim a deduction for car expenses, including car insurance. This includes if you are using your car as a ride-sharing service or as an employee travelling for work. However, you probably use your car for both business and private use. As a result, you need to separate your car expenses so that you don't claim for personal use. An effective way to do this is through a logbook.

  If you don't use your car for work, it's unlikely you'll be able to claim car insurance on tax.

Written by

Gary Ross Hunter

Editor, Insurance

Gary Ross Hunter was an editor at Finder, specialising in insurance. He’s been writing about life, travel, home, car, pet and health insurance for over 6 years and regularly appears as an insurance expert in publications including The Sydney Morning Herald, The Guardian and news.com.au. Gary holds a Kaplan Tier 2 General Advice General Insurance certification which meets the requirements of ASIC Regulatory Guide 146 (RG146). See full bio

Gary Ross's expertise

Gary Ross has written 644 Finder guides across topics including:

• Health, home, life, car, pet and travel insurance
• Managing the cost of living