How long can an insurer take to decide your car insurance claim?

The Code's claim timeframes

These are the timeframes in the current Code (the 2020 Code, as updated in 2023). Business days are Monday to Friday, excluding public holidays. Under the Code, the insurer:

• Tells you what information it needs, and gives an estimate of the timeframe and process, within 10 business days of receiving your claim, if it needs more information or an assessment
• Updates you on your claim at least every 20 business days
• Responds to your routine questions about the claim within 10 business days
• Decides whether to accept or deny the claim, and tells you, within 10 business days of having all the information it needs and finishing its enquiries
• Makes its decision within 4 months of receiving your claim

When it can take up to 12 months

In some situations the Code allows up to 12 months for a decision: for example, after an extraordinary catastrophe, if the insurer can't get a response to its reasonable requests for information, or if you ask for a delay.

If a timeframe isn't practical, for example because a claim is complex, the insurer can agree a reasonable alternative timetable with you.

If a decision isn't made in time

If the insurer doesn't make a decision within 4 months (or 12 months, where that applies), the Code says it has to tell you in writing about its complaints process.

If the claim is denied or not paid in full

The insurer has to tell you in writing which parts of the claim it doesn't accept and why, that you can ask for the information about you it relied on and copies of any expert or supplier reports, and how to make a complaint.

You don't have to wait to complain

The timeframes are maximums. If you think a claim is being delayed unreasonably, you can complain at any time. Insurers have 30 calendar days to respond to a complaint, under ASIC's rules and the Code.

If it isn't resolved, you can contact the Australian Financial Complaints Authority (AFCA). It's free and independent.

Decision first, then payment

The Code's timeframes are about the claim decision. For a written-off car, accepting the claim is usually followed by a settlement offer, and then payment. Once a settlement is agreed, your insurer can tell you when it will be paid.

Is your insurer covered by the Code?

The Insurance Council of Australia keeps the list of insurers that have adopted the Code on its website. A new version of the Code is being developed. This guide uses the current version and is updated when a new one starts.

How long does an insurer have to decide a car insurance claim?

Under the General Insurance Code of Practice, generally within 4 months of receiving the claim (up to 12 months in some situations), and within 10 business days of having all the information it needs.

How often does my insurer have to update me?

At least every 20 business days, under the Code.

Do I have to wait 4 months before complaining?

No. If you think a claim is being delayed unreasonably, you can complain at any time. Insurers have 30 calendar days to respond to a complaint.