How to make a car insurance claim

If disaster has struck, it's time for your car insurance policy to shine. So let's get into what you need to after an accident, including what to expect from the process of making a claim on your insurance policy.

Let's run through the basic process of how to make a car insurance claim. 

Right after the accident, after getting appropriate medical and roadside help from the authorities, make sure to exchange contact and insurance details with any other parties involved in the accident.

If the police are present, make sure to obtain a copy of the police report and take photos of any damage, including injuries you suffered. If you have a clear head, write down what happened as you remember it, too.

Next up, call your car insurance company. They will be able to provide you with claims assistance and walk you through the next steps. If your policy covers it, you may also receive compensation for a hire car or overnight accommodation if you need it.

You now have to assemble evidence to substantiate your claim. This includes receipts, reports, and damage assessments from a mechanic. It's important to be as thorough and honest as possible.

Once your claim has evidence and the paperwork is filled out through your car insurance provider's claims portal (usually online), you can submit your claim. Your wait time might be a few days to a few weeks while your provider assesses your outcome.

If successful, your provider will likely direct deposit you any reimbursements from your policy. If unsuccessful, you can usually appeal to your provider through the dispute resolution process. 

It’s easy to get frazzled during an accident, even if it’s a minor collision. Here are a few key actions to remember if an accident happens when you're behind the wheel.

1. Is everyone ok? If someone needs medical assistance or is seriously injured, call 000 immediately.

2. Licence: Get ready to exchange your personal details with the other driver, as well as the name of your insurance company. If you don’t have a piece of paper and pen handy, take a snapshot with your phone.

3. Number plate: While you’re jotting down their personal details and car specifications (including the make, model and colour of their car) write down their registration number as well. Or photograph it instead.

4. Damage: Taking photos of the damage to all cars is a good idea for record keeping, and can help determine how the accident happened and who was at fault. 

5. What, when, how? It could be that both parties will hold some responsibility and share the cost of the repairs, or that one driver is at fault and will have to cover costs. What you should agree on is the time, date and location of the accident. Also take note of weather and traffic conditions, road surfaces, street signs and the speed limit. Then exchange details and leave it up to the insurance companies. 

6. Call your insurance provider Your insurance company is trained to deal with customers who are highly stressed after an accident. If your car is too damaged to drive, the insurance company can organise a tow truck for you or give you a number of a company associated with your policy so that if you qualify, your expenses are covered or dealt with.

Here are some extra things you need to be aware of when making a car insurance claim.

1. Excess: If you’re at fault, you will need to pay an excess. Whether you hold third party property or comprehensive car insurance, your excess is an agreed amount you set when purchasing your policy which you'll have to pay before your insurance kicks in at claim time.

As a general rule, the lower the premium the higher the excess, as you're essentially betting on not having to make many claims. A lower excess when making a claim is great if you’re prone to regular accidents, but check with your insurance provider about how this will impact your annual premium. 

2. Future premiums: One little car accident might not feel significant, but it will likely increase your premium. This means if you make more than one claim in 12 months, your premium could go up significantly and your excess could also increase. But remember, these changes all depends on your insurance provider.

3. No claim bonus: This car insurance discount will likely be affected if you make a claim, although some providers will allow a set number of claims per policy period without it affecting your no claims bonus. Some will even offer bonus protection as an optional extra for a fee. And if you stay loyal to one provider, every year you don’t claim rebuilds your no claim bonus. 

In some situations, it may not be worth it to make a claim on your car insurance policy. Sometimes a minor ding isn't worth fixing, especially if the insurance excess you'd have to pay is more expensive than the damage itself.

It may also be worth it to pay for minor damage out of pocket so that you can enjoy a claim-free history or a no-claims discount on your premium. 

But in other situations, you may be forced to claim on car insurance if you want to keep driving, as well as pay for damage you've caused to other vehicles. Then you'll be really glad you took out a policy.

Young drivers or those with a poor driving history may also expect to pay more than the basic excess, since car insurance companies price your costs based on how risky you are as a driver. 

If you’re deemed a road hazard by your car insurance company and want to avoid stumping out extra cash, you may want to consider:

• Taking a refresher course with a driving instructor.
• Passing a safe driving course.
• Getting your eyes checked (just in case).

Do I need to use an approved repairer?

This will depend on your policy and provider. Some policies include your own choice of repairer, while others require you to use one of their approved mechanics or repairers. 

If you don't have a policy which covers your choice of repairer and you would like your local mechanic to do the work, run it past your insurance provider and get approval first. 

Who do I deal with after an accident

If you’ve been involved in an accident and you have filed a claim with your insurance company you should only deal with your insurance provider. Unfortunately, some parties may send you a personal letter of demand, since they’ve got your address now. Stay firm and ignore this.

Any car insurance claim is a matter between insurance parties or your insurance company and the third party. Nothing should come out of your pocket to cover damages (if you've got sufficient coverage and your claim has been approved) except for the excess you agreed on with your provider when you first purchased your policy. 

When am I not covered by my insurance policy?

You won't be covered if you were:

• Under the influence of alcohol over the legal driving limit
• Using illicit drugs or unregistered medication that may alter your ability to drive
• Speeding, driving negligently or breaking any other laws at time of the accident

Then, there will always be some things not covered by car insurance. These are usually listed as exclusions in your PDS, and include things like mechanical failures and general wear and tear. Also know any limits on certain policy points, like how many days you're covered for a hire car or the amount you insured for personal belongings inside your car.

How long will my car insurance claim take?

Initiating the claims process may only take minutes on the phone or online, but there’s no predicting the length of time the actual claim will take. You’re relying on the third party to be available so your provider can speak with them or their own insurance company to determine who’s at fault and the outcome.

You may need to factor in inspector’s assessments of both vehicles, police reports, medical examinations and more. This could take days, months or even years. So sit tight. There’s no telling if this will be a smooth or bumpy ride.

If you need help choosing the right car insurance for you, use Mozo’s car insurance comparison tool to get you off on the right track