Car Insurance Claim Tips | How to File | Common Mistakes to Avoid

Car insurance is one of those things most Aussie drivers don’t think about until they need it. Whether it’s a minor scratch in a car park or a serious collision on the highway, knowing how to properly file a car insurance claim can make the difference between a smooth payout and a frustrating experience.

Unfortunately, many people either delay filing, forget key details, or unknowingly make mistakes that lead to rejected or reduced claims. In Australia, where insurers deal with thousands of claims each week, understanding the right process can save you time, stress, and money.

This guide will walk you through the key tips for filing a car insurance claim, step-by-step instructions on how to do it, and highlight the most common mistakes to avoid. Whether you’re a first-time driver or have been on the road for decades, these insights will help you navigate the process with confidence.

Understanding Car Insurance Claims in Australia

Before diving into the steps, it’s important to know the basics of what a claim actually is.

A car insurance claim is a formal request you make to your insurer after your vehicle is damaged, stolen, or involved in an accident. The insurer then assesses your claim and decides whether to cover the repair costs, replacement, or compensation based on your policy terms.

In Australia, the type of insurance you hold affects what you can claim:

• Comprehensive Insurance – Covers damage to your car and other vehicles/property, regardless of fault.
• Third Party Property Damage – Covers damage you cause to other vehicles/property, but not your own.
• Third Party Fire & Theft – Covers damage you cause to others and adds protection for theft or fire damage to your car.
• CTP (Compulsory Third Party) – Legally required, covers injuries to people but not damage to cars.

Knowing what your policy covers is the first step toward a successful claim. Many drivers mistakenly assume they’re covered for everything, only to find out too late that their policy has limits.

Step-by-Step Guide: How to File a Car Insurance Claim

Filing a claim doesn’t have to be overwhelming if you follow a clear process. Here’s how you can handle it effectively in Australia.

Gather Information Immediately

After an accident, details matter. Take the time to:

• Record the date, time, and exact location of the incident.
• Collect names, phone numbers, and addresses of all parties involved.
• Write down license plate numbers and driver’s license details.
• Gather insurance details of the other driver.
• Take photos of the accident scene, vehicle damage, skid marks, and surroundings.

The more evidence you collect, the stronger your claim will be.

Notify Your Insurer Promptly

Most insurers require you to notify them within a reasonable timeframe, often 24–48 hours. Even if you’re unsure about lodging a claim, it’s best to report the incident early.

Delays can raise red flags and may even result in your claim being rejected.

Provide Accurate Details

When filling out your claim form (online or over the phone), accuracy is critical. Be honest about what happened, who was at fault, and the extent of the damage. Misleading or withholding information can void your policy.

Submit Supporting Documents

Attach all evidence you’ve collected – photos, police reports (if applicable), and witness statements. These help insurers process your claim faster.

Cooperate with Assessors

Your insurer may send a vehicle assessor or ask you to take the car to an approved repairer. Be cooperative and provide access as needed.

Track Your Claim

Many insurers in Australia now offer online portals or mobile apps where you can track your claim progress. Use these tools to stay updated and provide any extra documents quickly.

Common Mistakes to Avoid When Filing a Car Insurance Claim

Even experienced drivers can make errors that harm their claim. Here are the most common mistakes – and how you can avoid them.

Admitting Fault at the Scene

Never admit fault immediately after an accident, even if you think you caused it. Liability is determined by the insurer (and sometimes police), not by drivers. Admitting fault can limit your insurer’s ability to defend you.

Failing to Collect Details

Many drivers forget to note down crucial information, thinking the other party will provide everything later. If the other driver disappears or gives false details, your claim becomes much harder.

Delaying the Claim

Waiting weeks or months before filing reduces your chances of success. Insurers may argue the damage was unrelated or exaggerated.

Not Reviewing Policy Limits

Some drivers try to claim for damage that isn’t covered by their policy, wasting time and potentially increasing premiums. Always check your Product Disclosure Statement (PDS).

Providing Incomplete Evidence

Submitting vague descriptions or poor-quality photos can delay approval. Always aim for clear, detailed, and time-stamped evidence.

Overstating Damage

Inflating repair costs or damage reports can be considered fraud. This can lead to policy cancellation and legal consequences.

Practical Tips to Maximise Your Car Insurance Claim

• Keep a dash cam: In Australia, dash cams are becoming increasingly common and provide unbiased evidence.
• Know your excess: Understand how much you’ll need to pay upfront before the insurer covers the rest.
• Choose repairers wisely: Some insurers restrict you to their approved repairers. If you prefer your own, make sure your policy allows it.
• Keep records: Maintain a folder with receipts, service history, and insurance documents. These can help support your case.
• Report theft immediately: In theft cases, always file a police report before contacting your insurer.

What to Expect After Filing a Claim

Once your claim is lodged, the insurer will:

• Assess fault and liability.
• Review your evidence and documents.
• Assign a repairer or payout amount.
• Inform you of any excess payable.

In straightforward cases, claims can be processed in a few days. More complex ones involving disputes or injuries can take weeks or even months.

Disputes and Rejected Claims: What to Do

Sometimes insurers may reject a claim or offer less than expected. Common reasons include policy exclusions, lack of evidence, or non-disclosure of information.

If this happens:

• Ask for a written explanation – Insurers must outline why a claim was denied.
• Provide extra evidence – If you can prove your case, resubmit.
• Use internal dispute resolution (IDR) – Every insurer has a complaints process.
• Contact AFCA (Australian Financial Complaints Authority) – If unresolved, AFCA provides free, independent dispute resolution.

Preventing Future Claim Headaches

The best way to handle claims is to minimise the risk of needing them in the first place.

• Drive safely and defensively.
• Park in secure, well-lit areas.
• Service your car regularly to avoid breakdown-related accidents.
• Review your insurance policy annually to ensure it matches your needs.

Conclusion

Filing a car insurance claim in Australia doesn’t have to be complicated – but it does require attention to detail and an understanding of your responsibilities as a policyholder. By following the right steps, avoiding common mistakes, and keeping thorough records, you can ensure the process is smooth, fair, and stress-free.

Remember: the key to a successful claim is preparation. Treat your policy like a safety net – but make sure you know how to use it when the time comes.