Letter of demand for a car accident: what to write, who to send it to and what happens next

A letter of demand for a car accident is a short, dated letter to the driver who hit you. It says what happened, why they are at fault, what the damage cost you, and the date you expect to be paid by. You send it before you start a claim in a court or tribunal, and it is often what gets the other driver, or their insurer, to pay.

This page covers when to send one, exactly what to put in it, who it goes to, and where your claim goes next in Victoria, New South Wales and Queensland if they still do not pay. It is general information, not legal advice. It is about damage to your car and your out-of-pocket costs only, not injuries.

Start your car accident letter of demand for $49. You answer a few questions, read the letter, and approve it before anything is sent.

When a letter of demand is the right step

It suits you when the other driver was at fault and one of these is true:

• they agreed to pay at the scene and have since gone quiet;
• they gave you their insurer’s details and the insurer is slow or has not answered;
• you have no comprehensive insurance, or you do not want to claim on your own policy and pay the excess;
• they are disputing fault, and you want your version and your costs on the record with a date on it.

If you are comprehensively insured and happy to claim on your own policy, your insurer normally chases the other driver for you. The letter is for when you are doing the chasing yourself.

What to put in a letter of demand for a car accident

1. The accident. The date, the time and the place, in one sentence.
2. The vehicles. The make, model and registration of your car and theirs.
3. What happened and why they are at fault. A plain account in order: where each car was, what the other driver did, and what they failed to do, such as give way, stop in time or check before reversing.
4. Your proof. Photos, dashcam footage, the names of any witnesses, the police event number if you reported it, and anything the other driver said or wrote admitting fault.
5. What it cost you, item by item. The repair quote or invoice with the repairer’s name and the date, towing, storage, a hire car with the number of days, and your excess if you claimed on your own policy.
6. The total. One figure that the items add up to.
7. The deadline. A fixed date, usually 14 days from the date of the letter.
8. How to pay. Your bank details, or a request that their insurer pay the repairer directly.
9. What happens next. That you will start a claim in the court or tribunal for your State if you are not paid by the deadline.

Keep it factual. Leave out anger, guesses about what the other driver was thinking, and any threat other than the claim you are entitled to bring. Never claim an amount you cannot back with a quote, an invoice or a receipt.

Who to send it to

Address it to the driver who caused the accident. If you know their insurer, send the insurer a copy and quote the claim number if you have one. If the car belonged to someone else, such as an employer, name the driver and say whose car it was.

Send it in a way you can prove: email and keep the sent copy, or post it and keep the receipt. Keep a copy of the letter and everything you attach.

If they do not pay: where your claim goes

A claim for damage to your car is a civil claim for money. Each State sends it to a different place, and the letter should name the right one.

Victoria

In Victoria the claim goes to the Magistrates’ Court. The court says it can hear civil disputes “up to the value of $100,000 arising from debts, claims for damages, other monetary disputes or equitable relief”. You start by filing a complaint on Form 5A, and once it is served the other driver has 21 days to file a notice of defence. The court also says that “defended civil matters for car accidents and claims less than $10,000 are referred straight to arbitration”, a hearing the court does not have to run in a formal manner. Our guide to small claims in the Magistrates’ Court of Victoria walks through each step.

New South Wales

In New South Wales the claim goes to the Local Court. Its civil jurisdiction page lists “damages from a motor vehicle accident” among the disputes it hears. The Small Claims Division takes claims up to $20,000, and the General Division takes claims over $20,000 and up to $100,000. See our guide to making a small claim in the NSW Local Court.

Queensland

In Queensland the claim goes to QCAT as a minor civil dispute. QCAT says it “considers disputes regarding property damage caused by a motor vehicle up to $25,000”. You apply on QCAT’s form for consumer, trader and motor vehicle property damage disputes, and you do not need a lawyer. Our guide to the small claims process at QCAT covers the fees and the steps.

Other States and Territories

Elsewhere the claim also starts at the small-claims level. The limits are $10,000 for a minor case in the Magistrates Court of Western Australia, $12,000 for a small claim in the Magistrates Court of South Australia, $15,000 for a minor civil claim in the Magistrates Court of Tasmania, $25,000 for a civil dispute at ACAT in the Australian Capital Territory, and $25,000 for a small claim at NTCAT in the Northern Territory.

Common mistakes that weaken the letter

• No itemised costs. “You owe me about $5,000” is easy to ignore. A quote from a named repairer, dated, is not.
• Only one side of the proof. Attach the photos and the quote. Do not just say you have them.
• No date to pay by. “As soon as possible” gives them nothing to miss.
• Sending it only to the insurer. The driver is the person responsible. The insurer gets a copy.
• Waiting. Hire car and storage costs grow every day, and memories and footage do not last.

How Claim Done helps

Our Car Accident Damage Claim is a letter of demand to the at-fault driver, with a copy for their insurer, built from your answers: the accident, your proof, and your costs set out in a schedule that adds up. It names the right court or tribunal for your State and sets the deadline. It costs $49. You read it and approve it before it goes anywhere, and you can change the wording yourself.

Start your letter now. It takes a few minutes, and there is no card until the final step.