Car insurance: How to make a claim

Tips for making a claim on car insurance

• For a big accident, it’s likely emergency services will be involved. If so, get a copy of the incident number so your insurer can follow it up.
• For minor accidents, take the name, phone number, address and registration, and the name of their insurer. It’s also helpful to take some photographs of the scene and damage to vehicles.
• If you can’t move the car after an accident, you may have to have it towed to a secure location. Depending on your level of cover, the insurer may cover this cost.
• You’ll need a Police report number if your car has been stolen.
• If you’ve had items stolen from your car, it may be covered by your contents insurance policy.
• Any repairs will need approval from the insurer before they get done. Most insurers will direct you to a preferred repair service, however you can choose a repairer of your choice.
  
  

If you pay your premium monthly

If your car is a write-off, and you’re paying your insurance monthly (rather than in a lump sum annually) it’s likely your insurer will deduct the outstanding premium off any payout.

You'll have to pay an excess when you claim

• If you need to make a claim, it’s likely you’ll have to contribute the first few hundred dollars towards your car’s repair or replacement. This is called the excess.
• Most policies come with a standard excess. Generally, insurers allow you to choose a higher excess in exchange for lower premiums or vice versa.
• Younger drivers – or those on a restricted or learner’s licence – usually get stung with a higher excess. This can be as much as $1600 for a driver under the age of 21 with a learner’s licence.

Getting repairs under your car insurance policy

When you’ve had a prang, car insurers will usually steer you in the direction of their approved repairers.

One benefit of this is that repairs done by a car insurer’s approved repairer could come with a guarantee by the insurer. This means if the repair fails, the car insurer will foot the bill. It’s important to note the duration of the guarantee – some repairs will be covered under the Consumer Guarantees Act (CGA).

Under the CGA, repairers must carry out their service with reasonable care and skill. If a repair fails soon after it is completed, the repairer may be liable under the CGA.

If you’d prefer to have repairs done by a repairer of your choice, double-check your car insurance policy allows this before you sign up. Then let your insurer know when you make a claim. If the insurer unreasonably refuses, you can make a compliant to the Insurance and Financial Services Ombudsman Scheme.

Making a complaint about your car insurance policy

If your car insurer gives you the runaround, you can complain for free to the Insurance and Financial Services Ombudsman Scheme.

In the 2023/24 financial year, the Insurance and Financial Services Ombudsman Scheme received a record 4,974 complaint enquiries, a 21% increase from the previous year. It accepted 479 complaints for investigation. The most complained-about issue was the scope of cover.