Car Insurance: Claims & Repair process explained

Road accidents and unforeseen vehicular mishaps can leave you with a damaged car, but if you have comprehensive insurance cover, dealing with car insurance claims and the repair process should not be an uphill battle. Here’s a step-by-step guide.

This article, brought to you by Budget Insurance, explains how claims and the repair process work so that you can gain the knowledge and understand the support that you need to get back on the road.

What does Comprehensive Car Insurance mean?

Your car is one of your most valuable assets. If you can afford to take out comprehensive insurance, it’s the best protection you can give your vehicle, because apart from covering damage you may cause to a 3rd party’s car or property, the policy provides the most extensive insurance cover against accidents and mishaps. It covers repairs or replacement of your vehicle if it’s damaged or stolen, regardless of fault.

Whereas 3rd-party car insurance (usually the most affordable type of policy) covers damage you may accidentally cause to someone else’s vehicle or property, 3rd-party, fire and theft insurance also covers your car being stolen or damaged by fire, BUT it doesn’t cover your car against accident damage.

Comprehensive car insurance has you covered across virtually every imaginable scenario – from being stolen to being damaged by a falling tree branch, dinged by a shopping trolley, vandalised etc.

It does cost more than 3rd-party, fire and theft insurance, but it can be well worth it. Having this level of coverage can help you avoid expensive out-of-pocket repairs and get your car back on the road quickly.

Understanding insurance claims and the repair process

Unlike having your car serviced or the tyres changed, you hopefully shouldn’t have to submit a car insurance claim regularly. Because it is often unknown territory for many, the process of claiming and having your vehicle repaired can seem very daunting. However, knowing the steps to follow can help you remain calm after an accident and avoid unnecessary delays in getting your car repaired.

Safety first: Your priority is the well-being of yourself and others involved. If anyone is injured in a car accident, call emergency services immediately. Secure the scene as best as possible using hazard lights, warning triangles, etc.
Exchange information: If other parties are involved, get their names, contact details, insurance information and number plate info. This is crucial for your insurance claim.

Document the scene: Take photographs of the damage to your car, the position of any involved vehicles and any relevant aspects of the scene (skid marks, road conditions, etc). The more evidence you have, the easier it will be to build a strong claim and get your car repaired or replaced.
Gather witness information: If there are witnesses to the incident, obtain their contact information, as their statements may help support your car insurance claim.
Avoid admitting fault: Stick to stating the facts of the incident, and don’t admit liability to other drivers or your insurer. This is for your claims adjuster to determine.
Get a police report: If the police attended the scene, obtain a copy of their report and the Accident Report (AR) number. If the police did not attend the scene, you must still report the accident to them within 24 hours.

Contact your insurance company: Report the incident to your insurer as soon as possible. Even if there’s uncertainty about filing a claim, it’s better to alert them immediately. They will guide you on the next steps.
Be thorough and honest: Provide a detailed, accurate account of the incident and the full extent of damages to your car. Your insurer needs this information to process your claim fairly.
Understand the claims adjuster’s role: Your claims adjuster investigates your case and works to determine the extent of your insurer’s responsibility. Be prepared to answer questions and provide any additional information requested.

Visit approved repairers: Many insurers have a network of approved repair shops that offer quality workmanship and seamless communication with your insurer. These streamline the process and may minimise additional costs to you.
Get multiple quotes: Get at least 2 or 3 quotes for the repair work. This helps you compare prices and ensure fair costs. Try to negotiate with the repairer if their quote seems unreasonable.

Don’t skip any of these steps and rush to have your vehicle repaired. Ask your insurer for clarification on any part of the insurance claims and repair process that you don’t understand.

Understanding the role of insurance in repair costs

Your insurer plays a crucial role in managing the costs associated with repairing your vehicle after a covered event. Here’s how this typically works:

Excess: This is an agreed-upon amount you pay towards the repair costs, with your insurer covering the rest. The excess amount depends on your policy and the nature of the claim and is usually included in your policy documents. There are different types of excess, such as a flat amount or a percentage of the total claim.
Deductibles: In some cases, insurers also apply a deductible in addition to your excess. This is another amount, separate from the excess, that you pay towards repairs.
Coverage limits: It’s important to understand that comprehensive car insurance has limits. This means it covers repairs up to a certain amount, usually the market value of your vehicle. If repair costs exceed this, you’ll probably be responsible for the difference.
Approved repairers: Working with approved repair shops helps your insurer avoid inflated costs and minimises the risk of unexpected out-of-pocket expenses for you.

Get a Comprehensive Car Insurance quote

After reading this guide, we hope you feel more clued up about insurance claims and the repair process. Contact Budget Insurance to help you understand your coverage options and provide a comprehensive car insurance quote tailored to your needs. You can contact Budget Insurance on 086 1600 120 or utilise their online car insurance calculator, which gives you an accurate and budget-friendly quote in minutes.