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Being involved in a car accident or having your car stolen can be a stressful time. Knowing how the claims process works beforehand then, can make the ordeal so much easier to deal with.
This review will explore how car insurance works, how to claim, what to do if you're not at fault, process times and the steps to take following the event to ensure the claims process runs as smoothly as possible.
There are a lot of details to exchange in the event of an accident, so try familiarising yourself with the following details. Take them down on your phone or have some pre-filled forms in the car to make life easier.
This can be supplemented by picture and video evidence, taken with your phone at the scene, to make sure your insurer has all they need to successfully process your claim. Make sure you have this information in all cases, whether you plan on making a claim against someone or not.
Depending on your insurer, there may be different ways in which you can lodge a car insurance claim, including:
Insurers need all the information outlined above because it helps them determine the validity of claims and who is at fault. Insurers may be particularly interested in the details of the incident, and the details of the other driver and their insurer.
This is because insurers will typically attempt to recover costs from the at-fault party's insurers, when applicable, including the cost of damage, replacement rental car hire following an accident and other expenses. This, along with making sure you and your car are getting all the benefits your policy entitles you to, such as free repairs, free towing, emergency glass replacements and similar, are a significant part of what an insurer does.
The steps taken by insurers when processing claims can include:
Legal Aid recommends that you write a letter after the accident to let the other driver know you intend to make a claim against them.
This is a good idea if it's going to take a while to receive a repair quote. The other driver should then pass the letter on to their insurer – provided they have cover – unless they would rather pay for the damages personally.
You should then spend time getting at least two quotes for the cost of repairs so as to show they are fairly priced. Be sure to make photocopies of the quotes and keep hold of the originals. You should also add on any additional costs to do with the accident, such as towing costs, when working out your claim. If it's very clear who was at fault, it's likely your claim will be processed quickly. Otherwise, it can take insurers some time to determine if and who was at fault.
The time it will take to process your claim depends on a number of factors, including poor communication between you, your insurer and any other another driver involved. According to the General Insurance Code of Practice, your insurance provider has 10 business days from the day they receive your claim to respond with the outcome. If they need more time to decide, they will let you know in advance.
There usually isn't a fixed deadline for car insurance claims as some damage settlements can take years to be finalised. This means that while insurers don't generally set a time limit, they depend on your full cooperation, so you should let them know if you've been in an accident as soon as possible.
The main exception is with injury claims, which are dealt with through CTP insurance and can sometimes be sorted in as little as a month. This is to ensure injured people get the benefits they are entitled to as soon as possible.
There are often time limits with your Police Event Number. If you need to report the accident to the police, this usually has to be done within 28 days in most states.
If you use your car for work, you may be able to claim a deduction for car expenses, including car insurance. This includes if you are using your car as a ride-sharing service or as an employee travelling for work. However, you probably use your car for both business and private use. As a result, you need to separate your car expenses so that you don't claim for personal use. An effective way to do this is through a logbook.
If you don't use your car for work, it's unlikely you'll be able to claim car insurance on tax.
If you do not follow the terms and conditions of your insurance policy, then insurers may reject your claims. Look for:
In all cases, reading your PDS is an effective first step to making sure you know your responsibilities and exclusions. Contacting your insurance provider as soon as you are able might also be a good idea because it can let you ask specific questions and get some assistance on the scene.
If you are not happy with how your insurer has handled your claim, and after going through your PDS believe you are in the right, then you can contact the Australian Financial Complaints Authority (AFCA) for a resolution.
Picture: GettyImages
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My car has been damaged by someone. She is a green p-plater on her dad’s insurance. My damage comes to $2000, what would their excess be?
Hi Felicity,
Thank you for getting in touch with Finder.
We do not have the specific amount of excess as it varies per insurer and the level the driver sign up with. It starts from $600.
I hope this helps.
Thank you and have a wonderful day!
Cheers,
Jeni