
Step 1. I want to pursue the other party
If you decide not to claim, you may not be able to change your mind later. If you are insured, your insurer has the right to handle negotiations and act on your behalf, and to assess your car and repair it in accordance with your policy (for example, choice of repairer). If you repair your own car and/or pursue the other party, who then disputes liability, your insurer may decline or reduce your claim depending on how much you hurt your insurer’s interests. Your first step is to work out how much your damage you have suffered by the collision. This means gathering evidence and quotes for repair or if your car cannot be repaired its market value. Generally in car accidents, the other party is entitled to recover damages caused by the at-fault party's negligence. The damage in a motor vehicle repair claim is usually made up as follows:
- The lesser of:
- the cost of the repair; or
- the market value of the vehicle LESS salvage value
- PLUS towing costs
- PLUS hire car costs, lost wages or profits (called “demurrage”)
- age, make and model of the car
- condition of the car
- the availability of car repairers in the area.
- send a letter of demand, which outlines your damages and the date in which you want the money paid by; and then
- if the demand is not paid by the demand date commence a claim in Court.
- make a claim in the in the Australian Financial Complaints Authority (AFCA) if (and only if):
- You are not at fault (the other party caused the accident)
- The damage is less than $15,000 (or you are willing to accept $15,000 as your maximum loss) and
- The other party is insured (and claims on their insurance) or the other party has died or cannot reasonably be found and
- you did not have comprehensive insurance when the accident happened;