The Australian car insurance market is a competitive landscape with over 63 companies competing for car insurance claims. Of these 63 companies, the market is dominated by Allianz, IAG, Suncorp & QBE, who as of 2020 had a combined market share of 56.3%.

Our aim with this car insurance claim guide is to help you better understand the different types of car insurance, what exactly a car insurance claim is, when you should make a claim, the time constraints associated with making car insurance claims in Australia, what is involved with the entire car insurance claim process from start to finish, how making a claim affects you and how to best navigate and manage the process, especially after you have been in a car accident.

By the end of this guide, you’ll be a car insurance claim expert! If you have any specific questions, you can skip to that section by clicking one of the jump links below:

Deciding when to make a car insurance claim depends on the specifics of an accident and the potential implications.

If you’re at fault in a significant accident, filing a claim is generally wise. However, for minor damages, weigh the costs against deductible amounts and potential premium hikes. You might be better off paying out of your own money and not making an insurance claim for small accidents, especially if another party isn’t involved. It also makes sense when you have travel insurance.

We recommend seeking legal advice for any incident whether you were the at fault driver or not, even minor ones like damaging a wall or power line. Legal counsel can clarify your liabilities and guide your decision on whether to make a claim or not.

However, if you believe you’re not at fault, you have a legal right to be restored to your pre-accident state at no cost to you and do not need to make an insurance claim.

Check your eligibility here to see if Right2Drive can help provide you with a like-for-like accident replacement vehicle for the entire duration of the repair or until you receive the cash settlement payment in the case of a total loss.

Types of Car Insurance

It’s important to understand the different types of car insurance and what level of coverage each of them provide.

The four types of car insurance are:

CTP insurance.
Third-party property insurance.
Third-party fire and theft insurance.
Comprehensive insurance.

car insurance form

Below is a quick visual aid to help you get a quick overview of what is covered by each type of car insurance. Please note that this table is not comprehensive, and there are other features and benefits associated with each level of car insurance coverage specific to the policy you choose – please refer to each insurer’s Product Disclosure Statement for a comprehensive list of details.

Type of Insurance	Coverage	What It Doesn’t Cover
CTP Insurance (Compulsory Third Party)	– Covers injuries to other people caused by an accident you’re responsible for.	– Damage to your car or other people’s property. – Injuries to you.
Third-Party Property Insurance	– Damage to other people’s cars or property. – Legal costs for damage caused by your car.	– Damage to your own car. – Theft of your car. – Fire damage to your car.
Third-Party Fire and Theft Insurance	– Damage to other people’s cars or property. – Your car if it’s stolen or damaged by fire.	– Injuries to you or others. – Damage to your car from an at-fault accident.
Comprehensive Insurance	– Damage to your car and other people’s property. – Theft and fire. – Natural disasters. – Vandalism.	– Some policies might not cover damage caused by wear and tear, or if you were driving under the influence.

What is Comprehensive Car Insurance?

Comprehensive car insurance provides the greatest level of coverage across the widest range of events. It covers your car and those of the other parties involved, regardless of who is the responsible party.

This level of coverage generally has the highest premiums but protects you significantly from out-of-pocket expenses in the event of an accident.

What is Third Party Fire and Theft Insurance?

Third Party Fire and Theft insurance protects against damages you inflict on others’ property and vehicles while on the road. Generally, with most providers, there is an option to extend the coverage so it shields your car from theft, vandalism, intentional harm, and fire damage.

Depending on your chosen policy andcar insurance provider, you may also receive coverage for a rental car in the event of theft and damages caused by an uninsured motorist.

What is Third Party Property Damage insurance?

Third Party Property Damage car insurance provides coverage for damages you inflict on other vehicles and properties, excluding your car.

What is Compulsory Third Party insurance?

As the name suggests, Compulsory Third Party Insurance is a legal obligation for all cars in Australia. In all states except New South Wales where it is purchased separately, it is a part of your registration.

In certain states like Queensland, New South Wales, the ACT, and South Australia, drivers can select their CTP insurer during the registration process. However, in places like the Northern Territory, only a single option is available. It’s important to understand that CTP doesn’t provide coverage for personal injuries you sustain or for medical expenses.

Information	Details
Compulsory	All states
Included in Registration	All states except NSW
Choice of CTP Provider	All states except NT where only one option is present

What is a Car Insurance Claim?

A car insurance claim is a request formally made by the policyholder to their car insurance company to claim compensation from them as per their car insurance policy and coverage level.

Once the claim has been made, the insurance provider will assess it and provide an outcome dependent on the agreed policy and the evidence provided during the claim process.

In the event of more complicated claims, an Insurance Assessor may be required to provide additional expertise to assess the validity of a claim, the extent of loss and the resulting level of compensation.

Car on table

Is There a Time Limit on Car Insurance Claims?

Most insurers do not have a strict time limit car insurance for lodging property damage claims under Comprehensive car insurance policies. However, time limits can apply for lodging claims under Compulsory Third Party (CTP) insurance – these limits vary depending on the state. Please refer to each insurer’s Product Disclosure Statement for a comprehensive list of details.

State/Region	Claim Duration	Special Conditions	CTP Providers	Additional Tools/Info
NSW	3 months	Back pay entitlement if claimed within 28 days	AAMI, Allianz, GIO, NRMA, QBE, Youi	CTP Connect tool by SIRA
Vic	12 months	Exceptions up to 3 years with TAC approval	TAC (No-fault scheme)	N/A
Qld	9 months	1 month if managed by a solicitor	Allianz, QBE, RACQ, Suncorp	MAIC’s online tool
SA	6 months	Claim ASAP if vehicle unidentified/unregistered	AAMI, Allianz, QBE, SGIC	EzyReg tool
WA	3 years	Claim ASAP after the crash	Insurance Commission of Western Australia	N/A
Tas	12 months	Complete ‘Application for Benefits’ (Form B)	MAIB	N/A
NT	6 months	Claim ASAP after an accident	MACC & TIO (No-fault scheme)	N/A
ACT	13 weeks	Clear explanation if delayed	AAMI, Apia, GIO, NRMA	Access Canberra & Service NSW websites

Consequences of missing the deadline

If for one reason or another, you miss a car insurance claim deadline, you will likely face short-term and long-term consequences.

The most likely and immediate is a claim denial. Almost all policies specify the period during which a valid claim can be lodged, and claims made outside the fixed time window could be denied.

In the unlikely event that your claim is accepted, a potential long-term consequence could be increased premiums due to the perceived increased risk.

If a claim is denied you could become liable for out-of-pocket expenses relating to the incident. Depending on the set of circumstances, this could be of significant monetary value.

Further to this point, if you are found to be the at fault party, the not at fault party may decide to legally enforce compensation, resulting in legal fees which can significantly increase the out-of-pocket expense.

There are of course other potential ramifications from missing the claim deadlines but there are too many to cover in this article.

How to Claim Car Insurance

The process of making a car insurance claim can be lengthy and complicated. You must understand exactly what will be required of you and what you can expect from the process.

Initial steps:

Gathering Evidence: This is the most critical step in almost all claims. Collecting photographic or video evidence of the damage to your vehicle, any other vehicles involved, and the scene of the accident is paramount to a successful and fair claim outcome.

You should also collect the personal information of the other drivers involved, including their insurance information, driver’s licence, licence plate number and contact info.

We have a detailed blog explaining in thorough detail exactly what information needs to be collected after a car accident.

Reporting the Incident: Once you have collected the initial evidence, you need to report the incident to your insurance provider as soon as possible. This usually involves calling a dedicated claims number provided by the insurer.
Include Police Reports and Witness Statements if necessary: If the police attended the scene of the accident then there was likely a police report made. This report can be a crucial piece of evidence, as it provides an objective and impartial report of the incident.
Getting to Grips with Your Policy’s Terms and Conditions: Before submitting a claim, it’s essential to get a thorough understanding of your insurance policy. This will prepare you for the claim process and set expectations for what costs might be covered.

Once you have contacted the insurance provider:

Assigning a Claims Adjuster: Once the claim is filed, the insurance company usually assigns a claims adjuster, also known as a claims assessor, to investigate the incident. The adjuster will review the evidence, assess the level of damage, and determine the appropriate claim amount based on the policy’s terms.
Estimation and Repairs: It is likely you will be asked to get a dollar estimate for the total amount of damage relating to your vehicle. Depending on your policy, you may have a free choice of repair shops or be limited to one of the insurer’s preferred repair shop partners.
Settlement: Once the claims adjuster has completed their evaluation, they’ll offer a settlement, the type of settlement depends on whether the insurance policy is market value based or agreed value based.
Market Value Policies: The adjuster calculates your car’s current market value. If you disagree with this estimate, be ready to negotiate with supporting evidence.

Agreed Value Policies: The settlement is a pre-determined amount agreed upon when you took out the policy. Ensure the offer matches this value.
Payment: If you are happy with the offer, you can accept their proposal and ask them to begin processing the payments.

Is There a Time Limit on Car Insurance Claims Australia

Below is a quick visual aid to help you get a quick overview of what is covered by each type of car insurance. Please note that this table is not comprehensive, and there are other features and benefits associated with each level of car insurance coverage specific to the policy you choose – please refer to each insurer’s Product Disclosure Statement for a comprehensive list of details.

All insurers must abide by the General Insurance Code of Practice and inform the policyholder within 10 business days of their decision to accept or deny the claim once the insurer has received all of the required information, documents and supporting evidence.

However, the entire process from crash to conclusion varies greatly depending on the different factors:

Accident Severity: Minor accidents generally take less time to find a resolution than major collisions.
Multiple Participants: Generally speaking, the more parties involved in a car insurance claim, the longer it takes. This is especially true for third-party issues where a pedestrian was involved or property damage occurred.
Repair Times: The availability of parts, level of damage and how quickly the repair shop can begin work impacts repair times.
Documentation: The longer it takes to provide all of the required evidence and documentation, the longer the car insurance claim process will take.

In conclusion, while the claims process might seem daunting, understanding each stage and maintaining open communication with the insurer can make the journey smoother. Being informed and proactive is key to ensuring a favourable outcome.

What Happens If You Miss the Deadline?

When you are involved in a car accident, time is not your friend. Whether it’s a minor injury or a dangerous accident, you must file your claim within the time limit. Although the timeframe for lodging insurance claims in Australia varies by state, missing the standard time limit on car insurance could result in losing your cash settlement for medical expenses, personal injuries, and other losses.

Car accident insurance claims in Australia are bound by the statutes of limitations. These legal timeframes are crucial to preserve evidence, ensure fairness and encourage timely legal action. If you unnecessarily delay filing a CTP insurance claim, chances are,

the car accident insurance provider of the at fault driver will reject your claim, or
the compensation will be compromised, or
the courts will dismiss further proceedings.

Consult a CTP insurance specialist or a car accident lawyer early. You will get the necessary assistance to navigate the legalities and file a CTP insurance claim within the time limit.

But what is the time limit on car insurance claims? There’s no definitive answer, as each Australian state has its specific time limit on car accident claims. For instance, in Queensland, NSW, Victoria, WA, SA, ACT, and Tasmania, you must file a claim within six years to claim compensation for vehicle replacement or repairs. Northern Territory, on the contrary, has a shorter time limit on car insurance claim filing, which is three years.

While the legal time limit for filing car accident insurance claims in Australia applies to most cases, there are exceptional circumstances where the usual deadline can be extended.

Minors: Although it’s advisable to lodge a claim as soon as possible, a child (under 18) injured in a car accident can file a claim when s/he turns 18.
Complexity of the Accident: If a car accident involves multiple vehicles, the at-fault driver goes missing, or the driver is uninsured, an extension of the time limit becomes necessary due to additional investigation.
Late Signs of Injuries: Car accident injuries often result in internal injuries, mental incapacity, or whiplash, which take longer to show symptoms. Courts may grant an extension to the time limit if the victim discovers the symptoms later.

Financial Aspects of Car Insurance Claims

Excess is a word you hear a lot when it comes to car insurance claims in Australia. Well, what is car insurance excess?

This is the out-of-pocket amount a policyholder must pay before the insurer starts to contribute towards settlement. For example, with a $500 excess on $2,000 in damage, the policyholder bears the initial $500, and the insurer handles the remainder. Generally speaking, the higher the excess amount, the lower the insurance premium. This is because there is less financial risk to the insurers.

Another key financial aspect is determining if a vehicle is written off or repairable. If the costs of repairs are greater than the car’s market value, it will be considered written off. If that is not the case, then repairable damages are settled after taking into account the excess amount in the policy.

If you are found at fault, it is likely that your insurance premiums will rise.

However, if you believe you are not at fault, then please check your eligibility here to see if Right2Drive can help you.

Factors That Influence the Time to File a Claim

Several factors come into play as far as the time limit of insurance claims in Australia is concerned. Some of these include:

Claim Complexity: Any claim that involves multiple parties, intricate car insurance policy terms, or severe damage may require an extended filing time. This is mainly because such cases require in-depth investigation and analysis.
Lack of Proper Documentation: If you have incurred severe injuries in a car accident, you need to submit the required documents with a complete residential address and updated contact details to become eligible for income protection insurance claims in Australia. Incorrect documents or incomplete information will further delay the entire process, as you may have to provide further clarification, thus affecting the legal timeframe for filing a claim.
Regulatory Requirements: Different insurance policies have varying claim processes and statutes of limitations. Whether it’s a car accident or a travel insurance claim, complying with regulatory requirements and adhering to legal frameworks is paramount. However, it often becomes challenging to meet all legal obligations and pass the verifications within the stipulated timeframe.
Previous Claim Records: Your previous claim history can impact the filing timeframe. Insurance companies assess the previous claim records to determine your credibility as a policyholder. If you are a repeated defaulter, it may take time to file a settlement claim. However, if your record is clean and accurate with no discrepancies, it will become easier to lodge a claim within the legal timeframe.

Navigating Complex Claim Situations

Insurance claims in Australia can often turn into a complex situation due to a variety of reasons. This section will help guide you in these types of situations. Let’s start with some reasons why an insurer might deny a claim:

Fraud Suspicions: Insurance fraud is unfortunately surprisingly common and a significant concern for car insurance companies. If the insurer suspects fraudulent activity they could deny your claim.
Policy Violations: Claims can be denied if the policyholder breaks any of the stipulations in their car insurance policy.
Incomplete Documentation: A claim could be denied due to incomplete or inaccurate documentation.
Coverage Limitations: Every policy has its limitations. If the damage or liability exceeds the policy’s cover limit, the outstanding amount won’t be compensated.

Steps to Take if Your Claim is Denied:

Review the Denial Letter: Always start by thoroughly reviewing the insurer’s denial letter. This document should provide reasons for the claim rejection.
Double Check Your Policy: Go through your insurance policy to ensure that the reason for the denial aligns with the policy’s terms and conditions.
Gather Evidence: If you believe the denial is unfair, reorganise and add any evidence or documentation that supports your claim.
Use Open Communication: Contact your insurer to discuss the denial. Sometimes, misunderstandings can be clarified through dialogue, leading to a resolution.
Seek Legal Advice: Consider consulting with a legal professional who can provide guidance on the best steps forward.

Dispute Resolution:

If you remain unsatisfied with your insurer’s decision, it’s important to know your rights for further redress:

Internal Dispute Resolution (IDR): Begin with the insurer’s IDR team. They are there to handle disputes and can sometimes overturn initial decisions if presented with compelling evidence or arguments.
External Entities: If the internal route doesn’t work, consider the Australian Financial Complaints Authority (AFCA). They serve as an independent dispute resolution scheme, handling complaints against insurers. They offer a fair, free, and accessible service, ensuring that both parties receive a just assessment.

Conclusion

Car insurance in Australia has many layers, with lots of companies offering different policies. Hopefully, this guide has broken down the main points to help you understand how it all works and left you with a better understanding of the landscape. From the types of insurance available, to how to make a claim, it’s crucial to be informed.

If problems arise, there are steps to follow to get things sorted. With the knowledge from this guide, you’ll be better equipped to handle car insurance situations. Remember, always stay informed, and if you believe you are not at fault, then check your eligibility.

Understanding Car Insurance Claims & Time Limit in Australia

Not At Fault? Avoid Lengthy Car Insurance Claims.

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