The Australian Car Insurance Claims Process: A Step-by-Step Guide.

If you’ve ever been in a car accident in Australia, you know the feeling: your heart’s pounding, you’re checking if everyone’s okay, and then the realisation hits that you now have to deal with insurance. According to the Insurance Council of Australia, roughly 1 in 7 people with car insurance make a claim in any given year, with the average claim size sitting just over $5,200. That’s a lot of people navigating the same process, and the difference between a smooth payout and a drawn-out headache often comes down to knowing what to do before you even pick up the phone. Here’s what you actually need to know.

Disclosure: Some links on this page are affiliate links. If you make a purchase through them, Britwealth may earn a commission at no extra cost to you. We only include products and services that are relevant to the topic.

This article is general information only and does not constitute professional advice. For your specific situation, consult a qualified professional.

1 in 7
Car insurance policyholders claim each year
Insurance Council of Australia

$5,200+
Average car insurance claim size
Insurance Council of Australia

10 days
Insurer’s deadline to contact you after a claim
MoneySmart

2 weeks – months
Typical claim resolution timeline
WSJ

The process itself is fairly standard across most Australian insurers, whether you have comprehensive cover or third-party property damage. But the details — what you gather at the scene, how quickly you act, and how you handle the paperwork — can make or break your experience. I’ve watched people sail through this in a week and others get stuck for months over a single missing detail. The difference isn’t luck. It’s preparation.

This guide walks through the full claims process from the moment you stop the car to the day you get your payout or repairs. Along the way, I’ll point out where people tend to trip up and what you can do to keep things moving. If you’re looking for a broader overview of how different types of car insurance cover work in Australia, that’s worth a read too.

What You Need to Know About the Car Insurance Claims Process

Safety First, Always
Australian law requires you to stop, check for injuries, and move vehicles off the road if safe. Call 000 if anyone is hurt or there’s a fuel spill. Nothing else matters until everyone is safe.

Evidence Is Everything
Photos, witness details, dash cam footage, and the other driver’s information are what your insurer uses to decide fault and payout. The more you collect at the scene, the faster things move.

Your Claim Number Is Gold
Once you file, you’ll get a unique claim number. Use it every time you contact your insurer, the repair shop, or a hire car provider. It’s how everyone tracks your case.

You Have Options If Denied
If your claim is rejected, you can request a written explanation, provide more evidence, or escalate to the Australian Financial Complaints Authority (AFCA). Don’t just accept the first no.

Insurance Claim Number
A unique reference number assigned to your specific claim. It’s different from your policy number, which stays the same across all claims. You’ll need this number every time you speak to your insurer, repairer, or any third party involved in your claim.

What I tend to notice is that most people don’t realise how much control they have over the timeline. The insurer isn’t the only one driving the process. Your speed in gathering information and submitting it matters just as much.

Why Getting the Claims Process Right Matters More Than You Think

The immediate aftermath of an accident is stressful, and that’s exactly when small mistakes have the biggest consequences. A single piece of missing information — like the other driver’s registration number or a witness’s contact details — can delay your claim by weeks. According to the MoneySmart guide on car insurance claims, your insurer must contact you within 10 business days after you file, but that clock doesn’t start ticking properly until you’ve submitted everything they need.

Consider this scenario: you’re in a minor fender bender in a Sydney car park. No injuries, just a dented bumper. You exchange names and phone numbers with the other driver but forget to get their insurance details or take photos. A week later, when you file your claim, the insurer asks for the other driver’s policy number. You don’t have it. Now they have to track it down through the other party, which can take days or weeks if that driver is slow to respond. Meanwhile, your car sits unrepaired.

The stakes are higher for not-at-fault drivers. In Australia, you’re legally entitled to a replacement vehicle if you didn’t cause the accident and can prove it. But that entitlement depends on having the right evidence from the scene. Without it, you could be paying for a hire car out of pocket while you wait.

There’s also the question of whether to claim at all. If the damage is minor and the repair cost is close to or below your excess, it might make more financial sense to pay for it yourself. Your future premiums could rise after a claim, sometimes wiping out any benefit of a small payout. I’ve seen people claim for a $600 scratch only to see their premium jump by $200 a year for the next three years. That’s $600 in extra premiums for a $600 repair — a net zero at best.

The $5,200 Reality Check
The average car insurance claim in Australia is just over $5,200. That’s enough that most people will want to claim, but it’s also enough that getting it wrong — missing evidence, filing late, or misunderstanding your excess — can cost you real money. Every step matters.

If you’re unsure whether your policy covers a specific situation, it’s worth looking into how coverage works for different vehicle ownership types before you need to claim.

Where People Go Wrong When Filing a Car Insurance Claim

Providing Incomplete or Incorrect Information at the Scene

This is the most common mistake and the one that causes the longest delays. You might think you’ve got everything, but missing a single detail — like the other driver’s licence number or the exact time of the accident — can force your insurer to go back and verify things with third parties. According to Right2Drive’s guide to the vehicle insurance claim process, even a misspelt name or wrong registration number can prolong the process because the insurer has to re-check evidence and contact the other driver’s insurance company. Double-check everything before you leave the scene. Take photos of the other driver’s licence and insurance card if possible.

Not Understanding Your Excess Before You Claim

Your excess is the amount you pay out of pocket when you make a claim. Many people don’t realise that the excess applies even when you’re not at fault, unless your policy specifically waives it in certain circumstances. MoneySmart points out that some policies will waive the excess if the accident was completely the other driver’s fault and you can provide their full name plus two of the following: phone number, address, driver’s licence number, or vehicle registration. If you can’t provide that information, you might be stuck paying the excess even though the accident wasn’t your fault. Check your policy wording before you need it, not after.

Delaying the Claim Submission

Time is a factor in insurance claims. The longer you wait to file, the harder it becomes for your insurer to verify the evidence. Witnesses forget details, damage can worsen, and the other driver’s memory of events may shift. Some policies also have specific time limits for making a claim. The general rule is to notify your insurer within 24 hours if possible. Even if you’re still deciding whether to claim, it’s better to report the incident early and decide later. You can always withdraw a claim, but you can’t go back in time to gather fresh evidence.

Mixing Up Your Policy Number and Claim Number

This sounds minor, but it causes real friction. Your policy number is a permanent code tied to your insurance account. Your claim number is unique to each incident. If you give a repair shop or hire car provider your policy number instead of your claim number, they can’t look up your case. According to Right2Drive, improper use of your claim number will inevitably delay the process. Keep both numbers handy, but use the claim number for everything related to this specific accident.

→ Scroll right to see all columns

Source: MoneySmart car insurance guide
MistakeTypical ConsequenceHow to Avoid It
Missing evidence at the sceneWeeks of delay while insurer verifies detailsUse a checklist; photograph everything
Not knowing your excess amountUnexpected out-of-pocket costReview your policy declaration page now
Waiting too long to fileClaim may be denied or evidence becomes staleNotify insurer within 24 hours
Confusing policy and claim numbersRepairers and providers can’t process your caseStore both numbers separately; use claim number for this incident

If you’re dealing with a specific type of vehicle or situation, like an imported car, the process can have additional quirks. It’s worth reading up on tips for insuring imports in Australia to understand where the differences lie.

How to File a Car Insurance Claim in Australia: A Practical Guide

Step 1: Secure the Scene and Gather Evidence

Before you even think about your insurer, your priority is safety. Australian law requires you to stop after any accident involving another car, person, or property. Turn on your hazard lights, check for injuries, and if it’s safe, move your vehicle off the road. If anyone is hurt or there’s a fuel spill, call 000 immediately.

Once everyone is safe, start collecting information. You need the other driver’s name, address, phone number, driver’s licence number, car registration, insurance company, and the make, colour, and model of their vehicle. Take photos of the damage from multiple angles, the surrounding road conditions, tyre marks, and any traffic signs or signals. If there are witnesses, get their names and contact details. If the police attend, ask for a police report number. Dash cam footage is extremely helpful if you have it. A dedicated dash cam for recording accident evidence can make this step much easier.

Step 2: Contact Your Insurer and File the Claim

Notify your insurance company as soon as possible. Most Australian insurers let you file a claim over the phone, through their website, or via a mobile app. You’ll need your policy number and the details you collected at the scene. Be prepared to describe what happened, where and when it occurred, and the extent of the damage. Upload any photos, police reports, or witness statements you have.

Once your claim is submitted, the insurer will give you a claim number. Write it down and keep it somewhere accessible. You’ll use this number every time you contact the insurer, the repair shop, or any third party involved in your claim. If you don’t receive a claim number within a few days, ask for it. According to Right2Drive, claim numbers are usually generated immediately after you file online or over the phone.

Step 3: Vehicle Assessment and Damage Evaluation

After your claim is logged, the insurer will assess the damage. This can happen in a few ways. For minor damage, you might be asked to upload photos through an app, and an assessor will review them remotely. For more significant damage, the insurer may send an assessor to inspect the vehicle in person, or ask you to bring the car to a drive-in assessment centre. The assessor will determine whether the damage is covered by your policy, estimate the repair cost, and decide if the car is repairable or a total loss.

If you disagree with the assessor’s estimate, you can get independent quotes from repair shops and negotiate with your insurer. You are not required to use the insurer’s preferred repairer, though doing so often simplifies the process because the insurer can pay the shop directly.

Step 4: Repair Approval and Settlement

If the claim is approved and the car is repairable, the insurer will arrange for repairs. You can choose to use their network of preferred repairers or a shop of your choice. If you use an approved repairer, the insurer typically pays them directly. If you choose your own shop, you may receive a cheque and need to manage the payment yourself. Repairs are usually backed by a quality guarantee from the insurer as long as you own the vehicle.

If the car is deemed a total loss — meaning the repair cost exceeds the car’s value — the insurer will pay out the agreed value or market value, depending on your policy. If you have a loan or lease on the vehicle, the cheque is typically made out to both you and the lender. If the payout is less than what you owe, you’ll need to cover the difference unless you have gap insurance.

  • 1
    Secure the Scene
    Stop, check for injuries, call 000 if needed, move vehicles off the road if safe. Collect the other driver’s details, photos, witness info, and police report number.

  • 2
    File Your Claim
    Contact your insurer by phone, online, or app within 24 hours. Provide your policy number, incident details, and all evidence. Get your claim number and keep it handy.

  • 3
    Vehicle Assessment
    The insurer assesses damage via photos, mobile visit, or drive-in centre. You can negotiate if you disagree with the estimate. Get independent quotes if needed.

  • 4
    Repairs or Payout
    Approved repairs are arranged through a preferred shop or your choice. For total loss, you receive a cash settlement based on the car’s value. Keep all receipts and records.

If you’re a city driver who doesn’t clock many kilometres, you might benefit from a usage-based policy. Pay-as-you-drive insurance is becoming more common in Australian cities and can change how claims are handled.

Frequently Asked Questions About Car Insurance Claims in Australia

What if the other driver doesn’t have insurance?
If you have uninsured motorist cover, your policy may cover the damage. Without it, you’d need to pursue the other driver directly. Your insurer can still help you file a claim if you have comprehensive cover, but you’ll likely pay your excess.
Can I choose my own repair shop?
Yes. You are not required by law to use the insurer’s preferred repairer. However, using their network often means they pay the shop directly and back the work with a guarantee. If you choose your own shop, you may need to manage payment yourself.
How long does a car insurance claim take in Australia?
It varies widely. A simple single-vehicle claim with clear evidence can be resolved in two weeks. A multi-vehicle accident with injuries or disputed fault can take months. Your insurer must contact you within 10 business days of filing.
What happens if my claim is rejected?
Your insurer must provide a written explanation. You can request a re-review with additional evidence, or escalate to the Australian Financial Complaints Authority (AFCA) if you’re still unsatisfied. Most insurers have an internal dispute resolution process first.
Do I have to pay an excess if I’m not at fault?
Generally yes, unless your policy waives it in specific circumstances. Some insurers waive the excess if you can provide the other driver’s full name and two of: phone number, address, licence number, or registration. Check your policy wording.
Should I claim for minor damage?
Not always. If the repair cost is close to or below your excess, it may be cheaper to pay out of pocket. Also consider that your premiums may rise after a claim. A small claim can end up costing you more in increased premiums over time.

Stay Organised and Know Your Rights

The car insurance claims process in Australia follows a clear sequence, but your role in it is more active than you might think. The speed of your payout depends largely on what you do in the first hour after an accident and how well you manage the paperwork that follows. Keep your claim number handy, understand your excess, and don’t be afraid to push back if something doesn’t feel right. The system works best when you know how to work it.

Remember: this article is general information only. For advice on your specific situation, speak to a qualified professional.

If this was useful, you might also want to read tips for getting warranty-covered repair reimbursements on car insurance.

Sources and Further Reading

Affordable car insurance for leased cars in Australia — A practical guide to coverage options and claim considerations when your vehicle is leased.

Car insurance with salvage title coverage in Australia — What to expect when claiming on a vehicle with a salvage or written-off title.

Insurance Council of Australia. Car insurance claims data. 🔗

MoneySmart (Australian Securities and Investments Commission). Claiming on your car insurance. 🔗

Right2Drive. Crash to Claim: A Clear Walkthrough of the Vehicle Insurance Claim Process. 🔗

Youi. Making a Car Insurance Claim with Youi. 🔗

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Sam Willy

I’m Sam Willy, one of the bright minds behind BritWealth.com, where I share insights, stories, and fun ideas about a wide range of topics—finance included, but not limited to it! My journey into the world of writing began with a simple hobby: sharing the things that fascinated me. From quirky facts to deeper dives into personal development, I’ve always been curious about the world around me and love passing that knowledge on.
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