Guides / After a car accident
Letter of demand after a car accident
If another driver caused a crash and you are left paying for repairs, your insurance excess or other costs, a letter of demand is often what gets the money paid. This guide covers claims for damage to your car and related costs in Victoria.
What you can claim
A claim for damage to your car usually includes:
- the reasonable cost of repairs or, if the car is not worth repairing, its value before the crash;
- your insurance excess, if your insurer paid for the repairs;
- towing, storage and assessment fees;
- reasonable hire car costs while your car was off the road.
Injuries are different. In Victoria, injuries from transport accidents are dealt with through the Transport Accident Commission (TAC) scheme, and are not part of this service.
The numbers to know
14 days
Set out the amount claimed item by item, attach the quotes or invoices, and give a deadline, usually 14 days.
What the letter should say
$100,000
You can file a claim in the Magistrates’ Court of Victoria, which hears civil claims up to $100,000.
If they do not pay
6 years
A claim for property damage caused by negligence generally has to be started within six years of the crash.
If they do not pay
If you have insurance
If you hold comprehensive insurance, your insurer will usually pay for the repairs and then pursue the other driver for its costs. What you may still be out of pocket for is your excess, and sometimes towing or a hire car. Speak to your insurer before sending your own demand, so the two claims do not overlap. Check your policy too: some policies limit what you can say or settle without the insurer’s agreement.
If you are not insured
Without your own insurer, you claim directly against the driver who caused the crash.
If the other driver is insured, their insurer will usually deal with the claim. Send your letter to the driver and ask them to pass it to their insurer and give you the claim number. The insurer may ask for quotes, photos and an inspection. It may also dispute who was at fault. Keep every reply in writing.
If the other driver is not insured, the claim is against them personally. The TAC scheme does not cover damage to cars, so there is no government fund that pays for your repairs.
If the other car was a work vehicle, send a copy of the letter to the business that owns it. We can advise who is responsible.
What to gather
- The other driver’s name, address, registration number and the owner’s name. Drivers involved in a crash must give these details.
- The police event number, if police attended or the crash was reported.
- Photos of both cars, the scene, road markings and signs.
- Names and contact details of any witnesses, and any dashcam footage.
- Two repair quotes or the repair invoice, and any assessor’s report.
- Receipts for towing, storage, hire and your excess.
What the letter should say
The letter should give the date, time and place of the crash, and a short, factual account of how it happened and why the other driver was at fault. Include both registration numbers and any police event number. Set out the amount claimed item by item, attach the quotes or invoices, and give a deadline, usually 14 days. Ask the driver to pay, or to pass the letter to their insurer and send you the claim number. Then say what you will do if neither happens.
Keep to the facts. Do not threaten to report the driver to police or to have their licence taken away to get paid.
If they do not pay
You can file a claim in the Magistrates’ Court of Victoria, which hears civil claims up to $100,000. Many car damage claims are under $10,000, and claims of that size are usually sent to arbitration, a less formal hearing.
Do not wait too long. A claim for property damage caused by negligence generally has to be started within six years of the crash. See If they still do not pay.
Common questions
Have another question? Phone 1800 776 529 or send us a message.
Write down what they said, when, and who heard it. Then send a letter of demand. An admission helps, but the claim still rests on the evidence of how the crash happened.
Ask the insurer to explain in writing and to give you its own assessment. A second quote from another repairer often settles the argument.
You can claim on quotes. A paid repair invoice is the clearest evidence of your loss, but you do not have to wait for it before sending a demand.
Law referred to
- Road Safety Act 1986 (Vic) s 61.
- Magistrates’ Court Act 1989 (Vic) ss 3(1) (definition of “jurisdictional limit”), 100(1), 102.
- Limitation of Actions Act 1958 (Vic) s 5(1)(a).
Last reviewed: October 2026, by a Victorian solicitor with a current practising certificate. This page is general information about the law in Victoria as at October 2026. It is not legal advice about your circumstances.
Out of pocket after a crash that was not your fault?
We can send a letter of demand to the other driver for a fixed fee of $440 including GST.
Phone: 1800 776 529
Email: info@lettersofdemand.com.au
Hours: Monday to Friday, 9 am to 5:30 pm
Office: 435 Nepean Highway, Frankston VIC 3199. We act across Victoria by phone, email and online.
Letters of Demand is a service of Professional Edge Lawyers.