Car insurance claim process | what to do after an accident

Knowing what to do in the event of an accident ahead of time can save you time and a lot of money.

One merciful thing about car accidents is that they end very quickly, no matter how long your time-expanding brain may later fool you into thinking they went on.

What can take much longer and be almost as painful in terms of mental anguish is the process of applying for car insurance.

No one wants to practice crash reporting a lot, and it probably won't get any more enjoyable if you do, but this is clearly a case of forewarned is forearmed.

If the worst happens and you have an accident, no matter who is at fault, knowing the procedure ahead of time and what to do and what not to do can save you time and a lot of money. 

So let's start at the very beginning of the car accident insurance process - those vital and often frightening moments immediately after a collision has occurred.

I crashed - what should I do?

As the famous Hitchhiker's Guide to the Galaxy says, "Don't panic." Emotions can run high on one side or both sides, or only on one side if it's a one-car accident and you implausibly hit a stationary object.

Try to take a zen-like stance, staying calm and putting the blame on the experts.

We previously published a helpful article on what to do immediately after an accident, but in general it is important not to admit guilt, no matter what happens.

It's also a good idea not to stir up tension by blaming the other driver for being at fault. Try to take a zen-like stance of calmness and leave the allocation of blame to the experts.

By the way, it is important to consider whether it is worth contacting the police if they have not yet appeared. By law, this must be done only in case of damage to property; this means vehicles other than yours or immovable objects such as street signs that may need to be repaired or replaced. 

You should also call the authorities if the police need to divert traffic or if drugs or alcohol are suspected of being involved in the accident. If you do contact them, make sure they give you a police event number to help with your application.

Whether or not the cops come, you need to act like one. It is important to collect evidence and details, and to photograph the scene; work has become much easier with the advent of the mobile phone.

Speaking of which, it might be worth downloading your insurance app - just in case - so you always have a checklist of what to do with you so you can file a claim instantly.

Traffic accident reports insist that you collect information at the scene of the accident, including the name, address, and registration details of the other vehicle involved, and the name and address of the owner of the vehicle, if it is not the driver. Just in case, get the name of their insurance company.

If someone refuses to share their data, call the police. And tell them you do it.

Be sure to note the time of the accident, the location where it occurred, and the traffic, lighting, and weather conditions as these may have contributed to the collision.

Basically, the more details you have the better, and if you can get witnesses to testify at the time, do so, because people tend to forget details if they are asked days or weeks later.

The crash diagram will come in handy when you get to the form time.

How to get car insurance

The good news when you look at the crumpled and depressing remains of what was once your favorite vehicle is that things will get better in time, especially if you're insured.

Obviously, you can claim your own accident insurance, but remember that you are not required to do so and should carefully consider whether you want to.

As Legal Aid NSW points out: “It's your choice. If you make a claim, you may have to pay the excess if you are at fault and may lose your bonus for not claiming.”

As absurd as it may seem, after paying insurance premiums and no refund, life depends on insurance companies - they didn't get rich by accident - and you may be in a better financial position if you don't make a claim, depending on the amount of damage. 

Obviously, if the repair will cost less than your surplus, you shouldn't claim. Be sure to call your insurer and discuss your options.

There are two types of insurance - comprehensive (which covers damage to your car, as well as other cars and any other damaged property) and third party property insurance, which usually only covers damage caused by you to a third party; those. other people's vehicles or property.

As Legal Aid helpfully points out, if the other driver is at fault and uninsured — which is the worst case scenario — you can also claim (up to $5000) for damage to your vehicle “under a little-known extension for uninsured motorists.” (UME) of your third party property policy."  

This is a question about third party insurance claims that few people know to even ask.

Again, it is very important to discuss an accident with your insurers before admitting any liability or entering into negotiations with other parties.

At this point, your insurance company will start sending you forms, some of which may seem a bit longer than the Bible.

These forms will always ask you to draw diagrams, so it's a good idea to make one at the crash site. If you're not good at drawing, get someone to help you because it could cause additional delays later on when the insurer contacts you to ask what the hell is going on with yours and if you've ever played, or won, the Pictionary game of your life.

Quote and more quote

It will probably be the smallest surprise to hear that not all mechanics are the same and they don't all charge the same amount for repairs.

You will need to get an offer from a car repairman to find out how much it will cost to repair your car, but it's worth getting more than one for comparison.

If the cost of fixing your car is more than the cost of replacing it, then you have a write-off in your hands, in which case you should feel lucky that you survived. And maybe glad you're about to get a new car.

At this point, you need to get a report of the pre-accident value of your car, minus the value of any residual value.

Your insurance company - or car organization - can help you with this, and if not, you'll need to contact an appraiser or loss adjuster using good old Google.

Please be aware that you may also be eligible for other expenses such as towing fees, loss of items that were in the vehicle, or rental of a replacement vehicle while this process is ongoing (see below).

Read your insurance papers carefully and remember the golden rule - if you don't ask, you won't get.

Auto insurance claims not my fault

If you believe the other driver is at fault, Legal Aid recommends that you write a letter demanding payment for your car and other expenses.

Attach a copy of the quote. Ask the other driver to respond within a certain amount of time, such as 14 days. Keep the original quote and a copy of the letter,” they advise.

On the other hand, if you receive a demand letter, you must respond. If you do not agree with the claim of who is to blame, explain your position, and if you do not agree with the proposed costs, dispute that too by obtaining your own quote.

Be sure to write “no prejudice” at the top of any correspondence so they can be used as evidence if, God forbid, you end up in court.

Can I rent a car while yours is being repaired?

If you managed to get out of the accident unharmed, but your car is not on the road, the biggest pain you will endure, even worse than filling out questionnaires and making phone calls, is the inconvenience of moving without wheels. .

In the worst case, you will have to endure public transport.

The good news is that if you are fully insured with a reputable company, they will most likely offer you to rent a car for your use in the interim. As always, if they don't offer, be sure to ask, and if they refuse, ask why.

If the accident was not your fault, then you will be able to claim reimbursement of the cost of renting a car from the insurance of the other party.

Insurance companies don't often advertise these things too clearly, but court cases in Australia have established that if you're an innocent driver, you should be able to recover these costs while your car is being repaired. All you have to do is establish a "reasonable need" for a replacement vehicle, such as the fact that you need it to get to work.

Courts have previously held that car rental costs were a reasonably foreseeable consequence of a car accident and therefore a reimbursable expense.

The term for reimbursement of insurance compensation for auto insurance

While on the one hand it seems unlikely that anyone would want to take their time with an auto insurance claim, minor problems and people unwilling to pay can drag on.

Legal Aid NSW advises that the time frame depends on the type of application you are making and that since each case is different, it is very important to speak to an attorney as soon as possible if you are concerned that nothing is being done.

There are also time limits that apply to things like your police event number. If an incident must be reported to the police, you must do so within 28 days or you may be fined.

After your report is sent, you must obtain a police event number to prove that the report was made in a timely manner.

If you are injured in an accident, you should be seen by a doctor as soon as possible after the accident so that you can claim damages later.

Have you had problems with insured events before? Tell us about your experience in the comments below.

CarsGuide does not operate under an Australian financial services license and relies on the exemption available under section 911A(2)(eb) of the Corporations Act 2001 (Cth) for any of these recommendations. Any advice on this site is general in nature and does not take into account your goals, financial situation or needs. Please read them and the applicable Product Disclosure Statement before making a decision.