No one ever wishes for a nasty fender bender. Or to have their vehicle stolen or written off by severe weather. Nevertheless, car insurance can help you get back on the road if you do run into an unfortunate situation – and save your wallet from taking a serious dent too.1
While making a car insurance claim is something most of us hope we’ll never need to do, knowing how to navigate the process if something does go awry can potentially help your claim run smoothly.
That means looking out for some of the common mistakes that may trip people up, whether it’s supplying incomplete information or misunderstanding what their policy does and doesn’t cover.
“If you’re submitting a claim after an incident, it’s natural to feel a little shaken up,” explains Priscilla Harangozo, Youi’s Claims Manager.
“But making an error, whether it’s accidentally providing incorrect details about an incident or not updating your policy details, could lead to delays and might even impact the outcome of your claim.”
To help give your car insurance claim the best possible chance of success, we’ve put together this guide that explains the most common mistakes Aussies make when they’re claiming after an insured event. We’ve also included some practical insurance claim tips that might assist should you ever need to make your own claim.
8 common car insurance claim mistakes to avoid
Here, Harangozo reveals some of the most frequent mistakes or misjudgements policy-holders make during the car insurance claims process at Youi.
1. Not reading your policy
Harangozo says a mistake people often make is lodging a claim without really understanding what their car insurance actually covers.
“People often fail to read their policy’s Product Disclosure Statement. Therefore, they make assumptions based on what they think they’re covered for, rather than what their insurance actually includes,” she says.
“This can lead to gaps in coverage, where you’re not covered for as much as you think you are; and that could mean you’re left out of pocket after making a claim – or in some instances, with nil coverage, where a claim isn’t accepted.”
Some examples of this kind of coverage gap might include:
- Valuable contents inside your car: Depending on the type of car insurance you have, cover for personal belongings inside the car may be quite limited. So, if you’re claiming for a mobile phone or portable GPS system after an insured event, for example, you may not be able to claim for the full replacement amount.2
- The current value of your vehicle: If you took out a policy for your car’s Market Value instead of an Agreed Value, you’ll only be covered for the amount your car was worth immediately before the incident that led to a claim, based on market conditions at that time.3,4 So, if it’s been a few years since you bought it, depreciation may mean you’re covered for less than you think.
To help avoid any unwelcome “surprises” of this nature, read your policy documentation carefully or get in touch with your insurer to discuss any details you’re not sure about,5 so you know exactly what you’re covered for before you make a claim.5 It’s also a good idea to regularly review your policy at renewal time, to make sure you still have the cover you need.
2. Thinking you can increase your cover at claim time
Another common misstep, according to Harangozo, is policyholders who try to amend their car insurance policy to boost their level of cover after they’ve already made a claim.
For example, she explains, they may attempt to reduce the excess amount they have to pay towards a claim or try to add car hire to their policy as an optional cover, without realising that changes won’t apply to a claim already in progress.
3. Thinking you can make a car insurance claim straight away
You see flood, bushfire or storm warnings on the news, and rush to buy car insurance to make sure you’re covered. Problem solved, right?
Not quite.
“Many insurers, including Youi, have a 72-hour exclusion period for claims relating to flood, storm, hail or bushfire, so you won’t be covered for these events right away,” Harangozo explains.6
“So, if you think you’d like to be covered for some severe weather events, consider reviewing your car insurance cover well ahead of time.”
4. Failing to provide all the key details
“People can often miss out key information or supply incorrect details that relate to the claim while they’re under stress – whether it’s about the time of the incident, where it happened, details of who was involved, who witnessed it, or other contributing factors,” says Harangozo.
These details are important as they can impact your claim. For example, if your car was driven by a young driver, you may need to pay an additional excess. Or if you’re not at fault for an accident and you can provide the necessary details about the at-fault driver, your excess might be waived.3
Your claim should also include all the details of the damage caused by the insured incident.
“If you don’t report every detail of the damage when lodging your claim, repairers and assessors might exclude unlisted damage from your quote. Take time to thoroughly inspect your vehicle or property, and always take clear photos,” says Harangozo.
Failing to provide the right information or documentation could delay your car accident insurance claim,7 so it can be helpful to record important details right away while they’re still fresh in your mind.
Finally, your insurer might seek to contact the other driver, their insurer or any witnesses who can confirm what happened.8
“It’s not always possible for your insurer to chase up all the details from a registration or licence number alone, so providing them yourself could help us process your claim more quickly,” says Harangozo.
“You should try to get the other driver’s full name, plus two other pieces of information, such as their registration, driver’s licence number, phone number or address.”
Youi’s downloadable car accident checklist can help guide you on the actions to take and the details to record in the aftermath of a traffic incident.
5. Not identifying the cause of the damage
Harangozo reveals that many people also fail to disclose the actual cause of the damage on their car crash insurance claim.
“For vehicles, it’s important to know the difference between things like theft and intentional damage,” she explains.
That’s because different types of car insurance cover you for different things.9
“At Youi, for example, our Third Party Fire & Theft policies cover you for damage caused by an attempted theft, but not for intentional damage, such as vandalism,” Harangozo explains.
“If you want your policy to cover you for intentional damage, you might wish to consider switching to Comprehensive car insurance.”
6. Not updating your details before a car insurance claim
When you take out a car insurance policy, you have a responsibility to let your insurer know of any changes to your lifestyle or vehicle, including if you change how you use your car – for example, if you start using it for business purposes,10 or make any modifications to it.11
“A common modification that’s often overlooked is paint protection film,” explains Harangozo.
“Many customers don’t take out Agreed Value coverage for this modification, as they generally assume it falls under paint protection, which is incorrect – and can come as a surprise if you need to make a claim.”
“Under an Agreed Value policy, you and your insurer are locking in a specific dollar amount that your car is insured for, but if you subsequently add a pricey aftermarket modification without disclosing it, that extra value won’t be covered by your policy.”
Failing to alert your insurer about car modifications could even affect your insurance coverage, so it’s a good idea to let them know about any important changes to make sure your policy is up to date.12
7. Failing to maintain your vehicle
Your car insurance coverage may depend on you keeping your car in a safe and roadworthy condition, says Harangozo, and that means looking out for signs of wear and tear, rust, corrosion, deterioration, structural fatigue or structural failure, including roof and body seals.
In fact, your insurance may not cover you if you’ve failed to properly maintain your car and you need to make a claim. Examples of this failure could include:10
- Not servicing the car as required by the manufacturer
- Not fixing something that’s broken, such as an indicator or brake light
- Driving your car while it’s damaged.10
8. Not following the road rules
While not technically a mistake related to lodging a car insurance claim, it’s also important to note that in the insurance world, a claim may be unsuccessful if your vehicle was damaged while the person driving it was breaking the law.10
For example, Youi’s car insurance policies won’t cover loss, damage or legal liability for claims where the vehicle:3
- Is driven by someone who has an accident and leaves the scene without swapping details with the other drivers
- Is driven by someone who isn’t observing the terms of their driver’s licence, or is driving on a suspended or cancelled licence
- Is driven by someone under the influence of drugs or over the alcohol limit
- Is overloaded with too many passengers
- Is being driven recklessly, for example failing to stop at a stop sign or texting while driving
- Doesn’t meet relevant transport laws regarding registration
- Doesn’t meet relevant transport laws regarding the correct use of a motor vehicle.3
How to make a car insurance claim
Ready for the good news? Once you know which mistakes to avoid, making a car insurance claim in Australia is usually pretty straightforward.
“At Youi, our 5-step claim process is designed to make getting your car back on the road as simple as possible,” says Harangozo. Here are the steps:
- Step 1: Lodge – you can submit your claim online or by phone.
- Step 2: Assess – we assess the damage and map out next steps.
- Step 3: Action – if your claim’s approved, we’ll arrange repairs or offer a cash settlement.
- Step 4: Track – you can stay up to date with your claim’s progress using our online tracker.
- Step 5: Resolve – once the repairs are completed, we’ll finalise your claim.
“Plus, with Youi’s 24/7 online claims portal, there’s no waiting until office hours. You can visit our website to make a claim at any time,” says Harangozo.
Tips for a smooth car insurance claims process
If you ever find yourself having to make a car insurance claim, you’ll no doubt be hoping for a speedy resolution. Harangozo offers the following practical car accident insurance claim tips that could help move things along:
- Always attend booked damage inspections and assessments – or reschedule them as soon as possible if you’re no longer able to attend.
- Always provide all the required details and documentation for your claim, such as identity documents, proof of purchase, service records or photographs.
- If it looks like your car is going to be written off, you could proactively provide your insurer with documents to help them calculate your payout. These might include your Original Purchase Documents (such as tax invoice or dealership contract), photos of what your car looked like pre-incident, approximate mileage, Payout Letter (if your car is still subject to finance), service records and records of any major recent repairs.
And while there’s no specific time limit for making a comprehensive car insurance claim in Australia,13 you may not want to leave it too long to lodge your claim.
“It’s a good idea to lodge your claim as soon as you can after an incident,” says Harangozo.
“Lodging early could make it easier to get accurate statements from witnesses, chase up information about other drivers, and can reduce the amount of time it takes for us to process your claim.
“Plus, leaving your car unrepaired for a long time could potentially make any damage worse, so there are lots of good reasons to lodge your claim as soon as you can.”
Car insurance claim FAQs
Looking for more advice to help you avoid making a mistake if you need to make a car insurance claim? Below, we’ve shared the answers to some common queries.
Is car insurance invalid if the wrong address is on my policy?
If you’ve moved house, you’ll probably want to let your car insurer know, as where you live can impact your premium.3
“Whether having the wrong address on an insurance policy will void your cover depends on your insurer. For example, if you’re insured with Youi, part of the responsibilities you need to fulfil is to let us know if you change the location of where you park your car during your contract period,” explains Harangozo.
“In some cases, failure to meet your responsibilities could lead to your policy being cancelled by us, so it’s a good idea to let us know as soon as you can.”
Why might my insurer refuse a car insurance claim?
There are a few common reasons an insurer might refuse a claim for car insurance.14
Firstly, an insurer might refuse a claim due to a condition or exclusion of your cover. For instance, your policy may not cover you if your car was not kept in a roadworthy condition or if you were driving under the influence of alcohol or drugs.14
A claim may also be refused if you have given your insurer the wrong information – misrepresentation. This could include failing to disclose prior insurance claims, existing damage to your car or previous driving offences, such as drink driving.14
Finally, insurers can refuse claims if the policy has been cancelled due to non-payment, or in cases of fraud.14
Can I cancel a car insurance claim?
“This depends on your insurer, but usually you can cancel any claim without penalty, provided you do so before it’s finalised,” says Harangozo. “Just bear in mind that this window of opportunity will typically close once you authorise a repairer to begin work.
“If you want to cancel a car insurance claim you’ve made with Youi, just get in touch with us to discuss it, and we can take it from there.”
Now that you know some of the common car insurance claim mistakes people make, we hope you feel better placed to avoid them if you ever need to lodge a claim in the future.
And if you’re looking to insure a new vehicle or update your existing cover, we can help you find a car insurance policy that’s a bit more you-shaped. Consider starting a quote online or giving us a call on 13 9684.
1 Source: Canstar – Do I need car insurance in Australia?, May 2025
2 Source: Canstar – What does car insurance cover?, November 2024
3 Exclusions, limits and additional fees may apply. See the Car Insurance PDS for full details.
4 Source: Insurance Council of Australia – ABC’s of General Insurance
5 Source: Insurance Council of Australia – Your guide to car insurance claims
6 Exclusions and limits may apply. Where you have increased your cover or reduced your excess within 72 hours of a flood, storm, hail or bushfire occurring, cover will be limited to the amount that was effective prior to the change. Loss, damage or legal liability caused by, resulting or arising from flood, storm, hail or bushfire during the first 72 hours of your policy first being purchased is excluded unless certain conditions apply. For more details, see the PDS, TMD and your policy schedule.
7 Source: Insurance Council of Australia – Insurance Claim Delay, December 2024
8 Source: Moneysmart – Claiming on your car insurance
9 Source: Moneysmart – Choosing car insurance
10 Source: Canstar – What does car insurance not cover?, January 2025
11 Source: Financial Rights Legal Centre – Understanding your Insurance Policy, January 2023
12 Source: Canstar – What voids car insurance? 11 things to consider, April 2025
13 Source: Canstar – How long after an accident can you file an insurance claim in Australia?, October 2024
14 Source: Financial Rights Legal Centre – Car Insurance Claim Refused, February 2026
