You just had a car accident. Your heart is racing and you need to work out what happens next with your insurance. Most drivers feel lost when they face their first claim. You might worry about excess payments, time limits or whether your insurer will actually cover the damage.
The good news is that lodging a motor vehicle insurance claim follows a straightforward process. Most Australian insurers handle thousands of claims every week. They have systems designed to move you from accident to resolution quickly. You just need to know the right steps and what information to gather.
This guide walks you through the complete motor vehicle insurance claims process. You will learn what to do immediately after a crash, how to decide whether to claim, the exact steps for lodging your claim, and how to handle disputes or unexpected bills. By the end you will understand your rights, your insurer’s obligations and the smartest way to protect yourself financially.
What to know about cover, fault and time limits
Your insurance policy type determines what you can claim for after an accident. Comprehensive insurance covers damage to your vehicle plus damage you cause to other cars or property. Third party property insurance only covers damage you cause to others, not your own vehicle. You need to check your Product Disclosure Statement to understand exactly what your policy covers and what exclusions apply.
Understanding your policy type
Most Australian drivers choose between comprehensive and third party property cover. Comprehensive policies let you claim for theft, fire, vandalism, storm damage and collision repairs to your car. These policies also cover third party damage when you are at fault. Third party policies cost less but leave you to pay for your own repairs, regardless of who caused the accident.
Some third party policies include an Uninsured Motorist Extension that covers up to $3,000 or $5,000 of damage to your car. You can only claim this benefit if you prove the other driver was at fault, was uninsured and you can identify them. Check your policy schedule to see if you have this extension.
How fault affects your claim
You can lodge a claim whether you were at fault or not. Both drivers typically pay their excess when they claim, even if they were not at fault. Your insurer decides fault based on police reports, witness statements, photos and damage patterns. If you share fault with another driver, your insurer may reduce your payout through contributory negligence.
Claiming on your policy can increase future premiums and reduce your no-claim bonus, even when you are not at fault.
Time limits you must meet
Most insurers require you to report motor vehicle insurance claims within a set timeframe after the accident. Some policies specify 30 days while others simply say "as soon as reasonably possible". Missing this deadline can lead to a rejected claim. You should contact your insurer within 24 to 48 hours after any accident to protect your rights, even if you have not decided whether to claim yet.
Step 1. At the scene after a crash
Your first actions at the crash scene directly affect how smoothly your motor vehicle insurance claims process runs. You need to stay calm and collect specific information before you leave. Insurers base their decisions on the evidence you gather in these crucial minutes, so missing details can delay your claim or reduce your payout.
Information you must collect
You should gather contact and vehicle details from everyone involved in the accident. Write down the other driver’s full name, address, phone number and driver licence number. Record their car registration, make, model and colour. Ask for their insurance company name and policy number if they know it.
Failing to collect complete driver information at the scene makes it harder to pursue compensation later, especially if the other driver becomes uncooperative.
Also document these key details at the scene:
- Exact location of the crash (street names, nearest cross street or landmarks)
- Time and date the accident happened
- Weather and road conditions (wet, dry, visibility)
- Names and phone numbers of any witnesses
- Police report number if officers attended
- Tow truck company details if your car needed towing
Photos and documentation
Take multiple photos of all vehicle damage from different angles. Photograph the entire accident scene including skid marks, road signs, traffic lights and any debris. Capture wide shots that show vehicle positions and close-ups of specific damage points. These images become critical evidence when insurers assess fault and damage costs.
Record a brief description of what happened while the details remain fresh. Note which direction each vehicle was travelling, the speed you estimate and any relevant factors like sun glare or obstructions. Keep this information with your photos so you have a complete record when you contact your insurer.
Step 2. Decide how to handle the damage
You face a critical decision after collecting accident information: should you claim on your policy or handle the damage another way? This choice affects your future premiums, no-claim bonus and out-of-pocket costs. Many drivers claim automatically without comparing their options, then regret the decision when their next renewal arrives with higher premiums.
Calculate whether claiming makes sense
Compare your excess amount to the estimated repair cost before you contact your insurer. If the damage costs $800 to fix but your excess is $700, claiming saves you only $100 while potentially raising your premiums for years. You should get repair quotes from at least two panel beaters to understand the true cost.
Consider these factors when you calculate your decision:
- Your current excess (basic plus any age or driver excesses)
- Estimated repair costs for all vehicles involved
- Your no-claim bonus discount percentage
- Typical premium increase after a claim (often 20% to 40%)
- Whether you were at fault
Claiming a small amount can cost you more in future premiums than paying for repairs yourself, especially if you have built up a strong no-claim bonus.
Consider your other options
You can pursue the other driver’s insurer directly if they were at fault and have insurance. The other driver needs to lodge their own claim first, then their insurer may negotiate with you to cover your costs. This approach avoids affecting your own policy but requires patience and clear evidence of fault.
Another option involves paying for minor damage yourself without involving any insurer. This protects your no-claim bonus and keeps your premiums stable. Remember that you must still notify your insurer about the accident when your policy renews, even if you chose not to claim. Failing to disclose accidents violates your duty of disclosure and can void future motor vehicle insurance claims.
Step 3. Lodge and manage your claim
Once you decide to claim, you need to contact your insurer within 24 to 48 hours of the accident. Most Australian insurers process motor vehicle insurance claims through online portals, phone lines or mobile apps. You should have your policy number, accident details and collected evidence ready before you start the claim process.
Contact your insurer and start the claim
Ring your insurer’s claims line (usually operating 24/7) or visit their website to begin your claim. When you call, the operator will ask for specific information about the accident and create a claim reference number. Write this number down immediately as you will need it for all future communication.
Prepare these details before you contact your insurer:
- Your policy number and driver details
- Date, time and location of the accident
- Description of how the accident happened
- Other driver’s details and registration number
- Police report number (if applicable)
- Photos of damage and accident scene
- Witness contact information
Starting a claim does not commit you to proceeding if you later discover the repair costs are lower than your excess.
Complete the claim form accurately
Your insurer will either send you a claim form or complete one over the phone with you. Answer every question truthfully and precisely. Describe the accident in clear, factual language without admitting fault or speculating about what the other driver intended. Stick to what you actually saw and heard.
Include measurements and specifics when you describe damage. Instead of writing "damage to front bumper", write "10cm crack in front bumper on driver’s side, paint scraped off". Attach all photos and supporting documents when you submit the form.
Track your claim progress
Most insurers contact you within 10 business days after you lodge your claim. They will either accept your claim, reject it in writing, or request additional information. You can check your claim status through your insurer’s online portal or by ringing their claims team with your reference number.
Keep records of every conversation with your insurer, including the date, time, person’s name and what you discussed. This documentation protects you if disputes arise later about what was agreed or promised during the claims process.
Step 4. Handle outcomes, bills and disputes
Your insurer will accept, reject or request more information about your motor vehicle insurance claims within 10 business days of lodging. When they accept your claim, they choose how to resolve it based on your policy terms and the damage severity. You need to understand your rights at this stage because insurers sometimes push outcomes that suit them more than you.
If your claim is accepted
Your insurer can repair your vehicle, pay you the repair cost or declare it a total loss and pay the sum insured or market value. Most comprehensive policies let the insurer select their preferred repairer from an approved panel. You can request your own repairer but the insurer may adjust the quote or refuse to guarantee the work quality.
Insurers often recommend writing off vehicles when repair costs exceed 60% to 80% of the car’s value. They deduct your excess, any remaining premium and the salvage value if you keep the wreck from your payout. You should check second-hand car prices on independent sites before accepting a market value settlement, as insurers sometimes undervalue vehicles.
If your claim is rejected or reduced
Insurers must provide written reasons if they reject your claim or reduce the payout. Common rejection reasons include policy exclusions (such as unlicensed drivers or unroadworthy vehicles), missed time limits or disputed fault. You can challenge their decision by contacting their Internal Dispute Resolution team first.
If your insurer refuses to change their decision after internal review, contact the Australian Financial Complaints Authority (AFCA) for free independent dispute resolution.
Pay your excess and manage extra costs
You must pay your excess before repairs begin, even when you were not at fault. Some insurers deduct the excess from your settlement payout while others require upfront payment. If you cannot afford the excess immediately, ask your insurer about payment plans rather than abandoning your claim. Paying for all damage yourself almost always costs more than claiming and paying the excess.
Final thoughts
Understanding the motor vehicle insurance claims process removes uncertainty when accidents happen. You now know what information to collect at the scene, how to decide whether claiming makes financial sense, the steps for lodging your claim and how to handle disputes if your insurer rejects or undervalues your damage.
Most claims settle within four to six weeks when you provide complete information upfront and respond quickly to insurer requests. Keep detailed records of all communication, save every photo and document, and never admit fault in your claim form. These practices protect you if disagreements arise later about coverage or payout amounts.
Smart drivers compare policies before accidents happen to ensure they have adequate cover at competitive prices. If you need comprehensive motor vehicle insurance that combines fair pricing with supportive claims handling, explore National Cover’s car insurance options and see how much you could save on your next policy.
