Claims of insurance rip-offs over car crash injury claims

Shocking footage of the moment a car slams into a pole has been released, as new data shows some Queenslanders who have been injured in car crashes are being ripped off by insurers – in one case being offered just $5000 instead of $100,000.

Queenslanders who have been injured in car crashes are being ripped off by insurers, with claims the big companies are trying to pay the least amount of money to victims.

The latest Compulsory Third Party Scheme Insights report from the Motor Accident Insurance Commission showed victims get seven and half times less compensation if an insurer knows they’re not legally represented.

Experts have also warned against tactics used by insurers to try to pay the lowest amount they can.

Amie Goodwin was a couple of minutes away from her home in 2021 when a car failed to give way at a roundabout knocking her into a pole.

Dashcam footage shows the moment she was hit and slammed straight into the pole. After the incident she struggled and even though she didn’t have visible injuries she was in pain for some time.

Shocking dashcam footage has been released of a car slamming into a pole in Brisbane. Picture: Supplied

“It takes a toll on your body more than you realise,” she said.

“So people look at you and you look fit, you look healthy, but they don’t see the pain that you go through in your body.”

Ms Goodwin was entitled to compensation and had three years to make the claim but due to her injuries and being overwhelmed she almost missed the cut-off.

“When I approached the lawyers, a week before the cut-off time, I just wanted to get everything in writing, basically what had happened,” she said.

“I was really concerned with what my future holds. So if I go into another job or anything like that, I just wanted a record of yes, I’ve had this injury, but this is what I’ve done to get better and to progress my life so that I can stay working.”

She said the insurance company told her they couldn’t put the claim in as it was only days from the cut-off.

“If I didn’t go to a lawyer, I would not have been able to put the claim in,” she said.

“I don’t have the knowledge to basically stand up against them, because for me, they’re intimidating. They’re a company, and I don’t know all the rules.”

Shine Lawyers Caboolture practice manager Carla Melbourne said she has seen circumstances where victims had been offered $5000 but with representation they settled closer to $100,000.

“Insurers will always try and get out for less than what the top dollar is so what we’re encouraging people to do is to make sure that they know what they’re entitlements are.” she said.

Shocking dashcam footage has been released of a car slamming into a pole in Brisbane. Picture: Supplied

“And getting what they’re actually owed rather than just what they’re initially offered by the insurers.”

Ms Melbourne said under legislation the insurer didn’t have to prove anything about the injuries they just have to respond to the evidence.

“We are seeing insurers jump on opportunities to resolve matters for really small value when the insurer knows that the claim could be worth much more,” she said.

“But they’re jumping on that opportunity is as quickly as they can.

She said some insurers use an initial claim form to finalise the claim (within the first month of the accident) even though the long term impacts of the injury may not be known.

An Insurance Council of Australia (ICA) spokeswoman said customers may claim directly with the at-fault-insurer or may seek legal assistance if they wish.

“Insurers assess claims on their merits and in accordance with the legislation,” she said.

“Customers who are concerned about how their claim has been handled can find information about the complaints process on the MAIC website.

Originally published as Claims of insurance rip-offs over car crash injury claims