Your Hire Car Runs Out But Your Car Is Still at the Panel Beater — What Now?

You've been doing everything right. You lodged your claim, you're using an approved repairer, and your insurer organised a hire car so you can keep getting to work. Then the hire car days tick out — and your vehicle is still at the workshop, waiting on a backordered part that's been held up somewhere between a South Korean factory and a container ship.

Your insurer's answer? "Sorry, your policy only covers 14 days."

This situation is playing out across Australia right now at a scale that has never been seen before. Global parts supply chains have been severely disrupted. Sensors, cameras, airbag modules, and body panels for modern vehicles can take weeks or months to arrive. And the standard 14-day or 21-day hire car allowance that was written into most policies years ago was never designed for this environment.

The good news: you have more leverage than your insurer is telling you.

Why Parts Delays Are Happening at Unprecedented Scale

Before addressing your rights, it helps to understand why this is happening so you can articulate it clearly when dealing with your insurer.

Modern vehicles are deeply reliant on semiconductor chips, sensors, and proprietary components. Many of these are manufactured in very specific supply chains — chips in Taiwan, sensors in South Korea and Germany, body panels stamped in facilities in Europe or Japan. When any part of these chains experiences disruption — whether from COVID-era factory shutdowns, shipping congestion, or trade policy changes — Australian repairers end up with vehicles sitting on their floors waiting.

This is not the repairer's fault. It is not your fault. It is a systemic, documented, industry-wide problem that insurers are fully aware of.

What Your Policy Actually Says vs. What the Law Requires

Most comprehensive car insurance policies include a hire car benefit expressed as a fixed number of days — typically 14 to 30 days. When the insurer says your entitlement is exhausted, they're referring to this clause.

However, policy wording operates within a broader legal framework. The General Insurance Code of Practice (GICOP), which all major Australian insurers are signatories to, imposes obligations on insurers that go beyond what's in the policy document. Critically, the Code requires insurers to:

• Act with "utmost good faith" in the handling of claims
• Take reasonable steps to minimise inconvenience to claimants during the repairs process
• Ensure delays in the repair process that are outside the claimant's control do not unreasonably disadvantage the claimant

A parts delay caused by a global supply chain disruption — something you had zero control over and could not have anticipated — is precisely the kind of circumstance the Code is designed to address. The insurer cannot point to a 14-day policy clause and hide behind it when the delay is caused by circumstances entirely outside your control and entirely within the claims ecosystem.

The Exact Argument to Make With Your Insurer

When you call your insurer, you need to move the conversation away from "what does my policy say" and toward "what are your obligations under the Code." Here is the specific language to use:

"My vehicle is delayed at the repairer due to backordered parts — a supply chain issue entirely outside my control. I understand my policy provides 14 days of hire car coverage, but I'm asking you to extend this under your obligations under the General Insurance Code of Practice to minimise unreasonable inconvenience during the claims process. I need written confirmation of whether you will extend the hire car benefit, and if not, the specific reasons why."

The words "written confirmation" and "specific reasons" are important. Insurers are far more careful when they know their reasoning will exist on the record. A verbal "no" costs them nothing. A written refusal that may later be reviewed by the Australian Financial Complaints Authority (AFCA) carries real accountability.

If the Insurer Refuses: The AFCA Escalation

If your insurer refuses to extend hire car coverage in circumstances where the delay is demonstrably due to parts availability — not workmanship disputes, not your own choices — you have the right to escalate to AFCA.

AFCA is Australia's free financial dispute resolution service. They have the authority to review insurance decisions and, where they find an insurer has acted unfairly or in breach of the Code, to direct the insurer to provide remedy — which can include compensation for out-of-pocket transport costs you incurred during the extended delay.

To escalate:

1. First go through your insurer's internal dispute resolution (IDR) process — request this formally in writing
2. If IDR produces an unsatisfactory response, or if 30 days pass without resolution, lodge with AFCA at afca.org.au
3. Provide AFCA with documentation: your policy, the hire car benefit terms, the repairer's written explanation of the parts delay, and the insurer's written refusal to extend

AFCA has a strong track record of finding in favour of claimants in cases where delays were caused by supply chain issues outside the claimant's control.

Practical Steps While You Wait

While you work through the dispute process, you may need transport in the interim. Keep records of every dollar you spend on alternative transport — Ubers, taxis, public transport top-ups, car rental out of pocket. If AFCA finds in your favour, these documented costs form the basis of any compensation ordered.

Also ask your repairer for written documentation of the parts delay — specifically a statement confirming the order date, the expected arrival date, and that the delay is due to supplier/shipping issues. This documentation supports your case with both the insurer and AFCA.

At NGARC: We Flag This Before It Becomes Your Problem

At North Geelong Accident Repair Centre, we check parts availability at the assessment stage — before your vehicle is even booked in. If we identify that components are likely to be delayed, we tell you upfront so you can factor this into your hire car arrangements and any conversations with your insurer before the clock starts running.

We also liaise directly with insurers on your behalf throughout the repair process. If a parts delay looks like it will exhaust your hire car coverage, we raise this with your insurer proactively — not after the fact when you're already without transport.

Call 03 4244 8938 or get a free assessment online.

6 Freedman St, North Geelong VIC 3215 | Mon–Fri 8AM–5PM | 24hr Towing: 0420 801 465