How to Lodge an AFCA Complaint Against Your Car Insurer (And Actually Win)

Most Australians don't know that their car insurer's decisions are not final.

If your insurer denied your claim, forced you into a write-off you didn't want, directed you to a preferred repairer that did substandard work, refused to cover a legitimate repair, or stonewalled you for months — you have a legal pathway to force them to reverse that decision, pay compensation, and be formally accountable for their conduct.

That pathway is the Australian Financial Complaints Authority, or AFCA.

AFCA is a free, independent dispute resolution service established under Commonwealth legislation. They handle complaints between consumers and financial firms including insurers. When AFCA makes a determination, it is legally binding on the insurer. Not a suggestion. Not a recommendation. Binding.

This guide explains exactly how to use it.

What Types of Insurance Disputes AFCA Handles

AFCA handles complaints about:

• Claim denials — insurer rejected your claim entirely, citing policy exclusions you believe don't apply
• Claim delays — unreasonable delays in assessing or settling your claim
• Repair quality disputes — repairs done through the insurer's preferred repairer were substandard and the insurer won't fix it
• Write-off disputes — insurer is writing off your vehicle when you believe it should be repaired
• Hire car disputes — insurer refusing to extend hire car coverage during unreasonable repair delays
• Insurer steering — insurer pressuring you into using a preferred repairer when you've invoked your right to choose
• Parts substitution — insurer authorised aftermarket parts without your consent in breach of your policy
• Excess disputes — insurer claiming you owe an excess in circumstances you believe should be waived

AFCA cannot handle complaints about premium pricing, underwriting decisions, or situations where proceedings are already before a court.

Step 1: Try Your Insurer's Internal Dispute Resolution First

Before AFCA, you must attempt to resolve the issue through your insurer's Internal Dispute Resolution (IDR) process. This is a legal requirement — AFCA will not accept your complaint until the IDR process has been exhausted or 30 days have passed without response.

How to trigger IDR:

Call your insurer and ask to speak with someone in their complaints or dispute resolution team. Say: "I would like to lodge a formal complaint and initiate your Internal Dispute Resolution process regarding my claim [claim number]."

Follow this up in writing — email is fine — with a clear summary of:

• Your policy number and claim number
• The specific decision or conduct you're disputing
• Why you believe the insurer's position is incorrect
• What outcome you're seeking

The insurer has 30 calendar days to respond to your IDR complaint. If they don't respond within 30 days, or if their response doesn't resolve the issue, you can go straight to AFCA.

Keep everything in writing. Verbal promises and verbal refusals mean nothing in a dispute. From the moment you decide to challenge an insurer's decision, put every communication in writing and keep copies.

Step 2: Gather Your Evidence

A well-documented AFCA complaint is dramatically more likely to succeed than a vague one. Before lodging, compile the following:

Policy documentation:

• Your Certificate of Insurance
• Your Product Disclosure Statement (PDS) — particularly the sections relating to the dispute (repairs, hire car, choice of repairer, etc.)

Claim correspondence:

• All written communications with your insurer regarding the claim
• Any written refusals or decisions they've issued
• The IDR response (or evidence that 30 days passed without one)

Third-party evidence:

• If the dispute is about repair quality: a written assessment from an independent repairer (NGARC can provide this) documenting specific defects
• If the dispute is about write-off valuation: an independent market valuation of your vehicle
• If the dispute is about parts delays: written documentation from the repairer confirming the supply chain delay
• If the dispute involves out-of-pocket costs: receipts for all transport, accommodation, or other expenses you incurred

Regulatory references:

• Where applicable, note the specific General Insurance Code of Practice clauses the insurer has breached. The Code is publicly available at codeofpractice.com.au. Citing specific clauses in your complaint signals that you understand the regulatory framework and are a credible complainant.

Step 3: Lodge With AFCA

Go to afca.org.au and select "Make a complaint." You can lodge online — it takes approximately 20–30 minutes.

You'll need to provide:

• Your personal details and contact information
• Details of the financial firm (your insurer's legal name — check your PDS for this)
• Your policy and claim numbers
• A clear description of the complaint — what happened, what outcome you want
• Copies of supporting documentation

AFCA's service is free for consumers. You will be assigned a case number and a case manager.

What Happens After You Lodge

AFCA first attempts a resolution phase — they contact the insurer and ask them to reconsider their position in light of your complaint. Insurers take AFCA complaints seriously because a formal determination adverse to the insurer becomes part of their compliance record and can trigger regulatory scrutiny.

In many cases, insurers reverse their position or offer a settlement during this initial phase. Many disputes resolve within 4–8 weeks without requiring a formal determination.

If the insurer holds their position, AFCA progresses to a formal review. Both parties submit their full case. AFCA makes a determination based on the law, the policy terms, the General Insurance Code of Practice, and what is "fair in all the circumstances." That last phrase — "fair in all the circumstances" — is significant. AFCA is not limited to strict legal interpretation. They can find against an insurer even when the insurer's legal position is technically defensible, if the outcome is plainly unfair.

AFCA determinations can require the insurer to:

• Approve and fund your repair
• use a repairer of your choice
• Pay for the cost of rectifying poor-quality repairs
• Reinstate hire car coverage and compensate out-of-pocket transport costs
• Revise a write-off decision and fund the repair instead
• Pay interest on delayed settlements
• Pay compensation for non-financial losses (stress, inconvenience) in cases of significant insurer misconduct

Common Winning Arguments at AFCA for Smash Repair Disputes

Based on published AFCA determinations in automotive insurance disputes, the following arguments are most frequently upheld:

"The insurer breached my right to choose my own repairer." If your policy includes a choice of repairer clause and the insurer pressured or coerced you into using their preferred repairer through misinformation, AFCA consistently finds against the insurer.

"The repair quality is substandard and the insurer refuses to rectify." Obtain an independent written assessment documenting the defects. AFCA will direct the insurer to fund proper rectification.

"The write-off valuation doesn't reflect market value." Insurers often use wholesale vehicle valuations. AFCA applies a retail market value standard in many cases. An independent valuation above the insurer's offer is powerful evidence.

"The hire car was cut off during a delay entirely outside my control." Parts supply chain delays documented by the repairer, combined with a GICOP argument about minimising claimant inconvenience, has proven effective.

You Don't Have to Do This Alone

The process above is manageable, but it's also time-consuming when you're already dealing with the stress of vehicle damage and disrupted transport. At North Geelong Accident Repair Centre, we can provide:

• Written documentation of repair defects for quality disputes
• Written confirmation of parts delays for hire car disputes
• Independent assessment letters for write-off valuation challenges
• Guidance on what documentation strengthens your specific complaint

If you're in a dispute with your insurer and need independent documentation to support your case, call us.

03 4244 8938 | 6 Freedman St, North Geelong VIC 3215 | Mon–Fri 8AM–5PM