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Many people consider car insurance as peace-of-mind in the event of an accident, theft or other problem with their vehicle. However, the claim process can be a complicated procedure. The most important thing to remember is never to have any repairs started before speaking to your insurer.
Most car insurance providers have a 24-hour hotline for all customers which you should call if something happens that could warrant a claim being made on your insurance. Operators will explain the claims process and take down preliminary details.
What information will I need to make a claim?
It's important to have as much information as possible when speaking to your insurer. If your claim is for an accident your provider will need:
- your insurance details, such as policy number, if available.
- name, address, license number, registration details and insurer of any other vehicles involved, if applicable.
- names and addresses of any witnesses who could corroborate your claim.
- photos of the accident if possible.
- ABN and GST registration if applicable.
In addition, you will need to inform the police as quickly as possible and have your vehicle towed away if it is unable to be driven. Some insurers will arrange towing for you. Comprehensive insurance often covers vehicles for towing fees as well.
If your claim is for a stolen vehicle, contact your insurer immediately after speaking to the police.
All documentation pertaining to the accident or theft should be forwarded to your insurer as soon as possible after you receive it. If you delay or do not supply required information, your claim could also be delayed or you could even affect the amount of compensation you receive.
Never repair or replace damaged items without the go-ahead of your insurer and never accept responsibility for claims.
What you should consider before you make a claim
The main consideration for most people will almost certainly be the financial consequences of making a claim on their insurance. Check your policy documents before making the claim, especially if the damage is light, as it may be worth covering the cost yourself instead of using your insurance. The main financial considerations are:
- excess – Many car insurers will require you to pay an excess for each claim you make. Some only require an excess to be paid if the damage is your fault or you have not managed to get the insurance details of the other person involved.
- no claim bonus – Unless your no claim bonus is protected for life, it's likely that any claim you make will affect it, resulting in a higher premium the following year.
- additional costs – does your policy cover you for any additional costs associated with your claim, such as charges to garage your car while it awaits repair? Make sure you are familiar with this aspect of your policy as storage costs can soon add up.
Another consideration you should take into account is whether or not you can choose your own repairer. Study your policy documents carefully, as some insurers may require you to select from a particular list of preferred repairers. If you wish to choose your own repairer you may be required to pay a fee.
The NRMA and preferred repairers
In general, most insurers accepted many years ago that customers wanted the freedom and assurance of being able to choose their own repairer in the event of an accident. However the NRMA, one of New South Wales’ most prominent car insurers has, up until recently, insisted upon forcing customers to use a smash repairer from a list supplied by the company.
This policy of using only preferred smash repairers has caused a lot of controversy amongst policy holders. So much so that during 2006, the NRMA was forced to rethink their policy and give their customers the choice of using a smash repairer of their own choice, without having to pay the $70 fee.
New legislation has been introduced in the New South Wales Parliament to amend the Fair Trading Act and make it fairer for all concerned.
Insurers, such as NRMA, would still like their customers to utilize the preferred smash repairers, however their customers are finally making their own decisions and choosing a smash repairer that they are comfortable with.
Car insurance means peace of mind, but what do you do in the event that you actually need to make a claim? And when should you or shouldn’t you make a claim?