File 01. Car insurance, Australia

Your claim was denied.
Now dispute it for free.

A denial is not the final word. Denied claims get overturned more often than people expect, and challenging one is free.

Is my denial worth fighting? Get the free kit

By the CaseMade team. Reviewed against AFCA and ASIC Moneysmart guidance. Updated June 2026.

A car on a wet city street at night, headlights reflecting on the road
73%

of complaints AFCA closed before a formal decision were resolved by agreement or in the consumer's favour.

AFCA, 2024-25. Across all products, not a win rate. Lodging costs you nothing.

Is my denial actually contestable?

The question almost no one answers. Here is a plain-English read on which denials tend to be worth fighting and which rarely are. A starting point, not legal advice.

Strong grounds
  • The insurer cannot point to a clear policy term you actually breached.
  • "Wear and tear" used to deny sudden, one-off damage.
  • Denied for late notice with no real prejudice to the insurer.
  • Non-disclosure of something you were never specifically asked.
Often arguable
  • Non-disclosure of a material fact you genuinely forgot.
  • Disputes over the car's market value or a write-off.
  • Modified-vehicle or unapproved-driver clauses.
Usually hard to shift
  • Driving unlicensed or over the limit at the time.
  • Clear evidence of deliberate damage or fraud.
  • The event genuinely sits outside what the policy covers.

Stronger grounds do not guarantee an outcome. Whichever column you land in, the free path below costs nothing to try.

The free path

Three steps. No lawyer required.

Every step here is something you can do yourself, for free, from the first letter to a binding decision at the ombudsman.

Get it in writing

Make the insurer state the exact reason and the policy clause they are relying on. That letter is the spine of your whole dispute.

Lodge an IDR complaint

Internal dispute resolution is the insurer's formal complaint channel. They generally must respond within 30 days.

Escalate to AFCA

The free, independent ombudsman. Their decision binds the insurer but not you, so there is nothing to lose by lodging.

Free and binding

Two ways forward.

Everything above is free to do yourself. When you are ready to act, pick the path that fits, and use the free public services first either way.

Do it yourself

Get the free dispute kit: the IDR and AFCA letter templates, the evidence checklist and a deadline tracker. Emailed to you.

We email once to confirm. No spam, unsubscribe anytime. Self-help templates only, not legal advice.

Have a specialist handle it

If your denial is complex or high value, we can check whether a vetted insurance-dispute lawyer can help, so you do not have to fight it alone.

Free to ask, no obligation, and only after the free path above. We connect you only with your consent. Free help first: AFCA and the Financial Rights Legal Centre, 1800 007 007.

Common questions

Can I dispute a denied car insurance claim for free?

Yes. In Australia you first lodge an internal complaint (IDR) with your insurer, then if needed escalate to AFCA, the free and independent ombudsman. Neither step charges you a fee.

How long does my insurer have to respond?

For most general insurance complaints the insurer generally must give a final IDR response within 30 calendar days. If they miss that deadline, or you are not satisfied with the outcome, you can take the complaint to AFCA.

Is AFCA's decision binding?

An AFCA determination is binding on the insurer if you accept it, but it is not binding on you. If you reject it you keep your other legal options, which is why lodging carries little downside.

Do I need a lawyer to dispute a denial?

No. IDR and AFCA are designed to be used by consumers directly, without a lawyer. Free financial counsellors and community legal centres can also help you prepare.

Sources

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