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If you’ve been injured in a car accident, you might be able to claim compensation. But the amount you receive for your car accident claim can vary significantly depending on your injuries and how your claim is handled.
It’s important to understand that it’s not just a simple matter of submitting a claim. You may need to lodge multiple claims to get your full entitlements, and the medical evidence you provide to back up your claim can change the amount of compensation you receive dramatically.
We’ve won thousands of car accident claims for our clients, and in this article, we explain what you need to know to make sure you receive everything you’re entitled to. We’ve included expert tips from our specialist car accident lawyers and explained how you can get help with your claim.
In our experience, if you’ve been injured in a car accident you’re likely to be in one of the following four situations:
This article will help you learn whether you can make a car accident claim and what you should do next to make sure you receive your full entitlements.
Your compensation will be largely determined by whether you have a ‘threshold’ injury, and whether you’re entitled to additional lump sums. This is explained in the next section of this article.
This is a very common question, and we’ve explained lump sum claims in this section of the article.
This is also very common. Learn more about your options in the section of this article where we explain how our lawyers often get insurer denials overturned.
If you need time off work or treatment costs for your car accident injury, then it’s likely it qualifies for a compensation claim. However, some injuries are more likely to qualify for larger claims and lump sums than others. Here’s an overview of injuries and their likelihood to qualify for a claim:
Neck and back injuries are some of the most common car accident injuries. The amount of compensation you can claim depends on how serious your neck and back injury is. If you sustain a whiplash or soft tissue type of injury, in most circumstances your injury will be classified as a ‘threshold’ (minor) injury. This entitles you to up to 12 months of weekly wages, treatment and care which is paid periodically. These types of injuries are not entitled to a lump sum payout or settlement.
However, If your neck and back injury is more severe and includes nerve damage or requires surgery, you may be entitled to a lump sum settlement for economic loss. People who have sustained the most severe injuries are entitled to claim a further sum for pain and suffering. This is reserved for people who have suffered a permanent impairment of greater than 10%.
The most serious neck and back injuries which require major surgery, restrict your ability to work or require ongoing treatment or care tend to result in much higher compensation settlements that can run into hundreds of thousands or even millions of dollars.
The compensation you can claim after a car accident will depend on how your head injuries are classified; either threshold (minor) or above threshold (non-minor). Threshold injuries are “soft-tissue” injuries like whiplash or concussion; above-threshold injuries are more serious injuries like spinal or skull fractures or traumatic brain injuries (TBIs). If your injuries are classified as above threshold and the accident wasn’t your fault, then it’s very likely that you can claim a lump sum on top of your personal injury benefits.
Car accident injuries that involve broken bones or require surgery are likely to be classified as above-threshold injuries and qualify for lump sum payments in addition to weekly benefits.
Injuries that result in pain, inflammation, and bruising are generally considered threshold (minor) injuries. They may qualify for weekly benefits if you need time off work or incur any treatment expenses but are less likely to qualify for significant compensation.
You can’t make a car accident claim specifically for emotional distress through the NSW CTP scheme. However, if you have a diagnosable psychological condition, you may be entitled to sue for psychological injury.
Just like physical injuries, psychological injuries from car accidents are classified as either threshold or above threshold.
If you’re assessed as having an above-threshold psychological or psychiatric injury, you may be entitled to make a lump sum car accident claim as well as claiming for treatment, care, and weekly payments.
According to SIRA (the State Insurance Regulatory Authority), in the 12 months to October 2024, around 12,000 motor accident injury claims were reported in NSW, and $1.5 billion was paid out in benefits and lump sums. That’s $125,000 paid out for every new claim reported.*
The amount you can expect for your car accident injury claim depends on the extent of your injuries, which will be classified as threshold (minor) or above threshold. The following table outlines the difference:
| Physical Injury Classification | Examples |
|---|---|
| Threshold (soft tissue injuries) |
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| Above threshold (fractures, organ damage) |
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It’s important to understand that compensation for being injured in a car accident also depends on the extent of your losses (such as lost income). Here’s a summary of car accident compensation entitlements:
| Category | Entitlements |
|---|---|
| 1. Threshold injury |
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| 2. Above threshold injury |
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| 3. Above threshold injury, over 10% permanent impairment |
|
To get an estimate of your car accident claim entitlements in NSW you can use this compensation calculator.
*Based on SIRA Open Data, October 28 2024.
**Note: if you were at fault and your accident happened before April 1, 2023, your income support, medical, and home care expenses will be limited to six months.
If you’ve been injured in any motor vehicle accident in NSW, then it’s likely you’re entitled to make a car accident injury claim under the NSW CTP scheme if you’ve had any time off work or treatment expenses. This includes:
Your injury can be physical or psychological.
Call 13 15 15 or chat to us now for free advice
Chat nowFind out how much you can claim.
Get startedYes, even if you were at fault in a car accident, or partially at fault, you can make a car injury claim as long as you haven’t been charged with a serious driving offence in connection with the accident, and you weren’t driving an uninsured vehicle.
If you’re unsure whether you can claim, you can call 13 15 15 and get free legal advice on your situation.
There are three ways to claim compensation if you’re injured in a car accident:
SIRA manages the claim process, and car accident injury claims are processed by the CTP insurers.
To make a car accident injury claim, you’ll need:
For more information, here’s a detailed article on how to lodge a CTP claim.
While travelling to visit a friend, Layla was suddenly jolted forward and lost control of her vehicle after a runaway truck hit a travelling taxi which was then propelled straight into her. Layla sustained a deep head laceration, a broken and dislocated arm, a fractured disc in her lower back and multiple bruises and abrasions to her limbs and torso. Law Partners successfully claimed a $1M payout for Layla, which provided massive relief while she recovered and shored up her financial future. Read Layla’s full story.
You can claim a lump sum payout on top of your personal injury benefits if you meet the following conditions:
There are two types of lump sum payment available: future income loss, and non-economic loss (sometimes known as pain and suffering).
Covers your loss of earnings or reduced ability to earn income due to your injuries right up until the date of retirement. For example: if you can only work 20 hours a week because of your injuries, and you used to work 40 hours, your lump sum could include an amount to cover 20 hours a week in lost earnings for the rest of your working life.
Covers your reduced quality of life. Only a person with a whole person impairment of more than 10% can claim non-economic loss as well as income loss.
After you submit your car injury claim the CTP insurer will assess it. Within four weeks you’ll receive a letter from the insurer stating whether it is accepting or denying your claim and what compensation you’re entitled to. The insurer will start making compensation payments to you within 14 days if it accepts the claim.
The CTP insurer will then send you a second liability decision within three months of your claim being lodged. This liability decision indicates whether your injuries have been classified as either threshold or above threshold and who is at fault for the accident.
The amounts you may be entitled to are summarised below:
| Claim | Car Accident Injury Compensation Payout Process |
|---|---|
| Medical and treatment expenses |
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| Care expenses |
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| Income support payments |
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In addition, if you make successful common law claims for future loss of earnings and pain and suffering, these will be paid to you as lump sums.
Most car accident injury claims don’t go to court. In fact, in NSW of the 70,647 total claims made since 1 December 2017, only 97 have been litigated. *
If you’re not happy with a CTP insurer’s decision on your compensation payments you can dispute the decision, and most disputes are resolved by agreeing on a settlement out of court.
In most cases, the first step is to request an “Insurer Internal Review” by the CTP insurer, then if you’re still not satisfied with the outcome you can escalate your dispute to the Personal Injury Commission (PIC). The PIC will help you in one of two ways:
For more information, read our in-depth article on checking and disputing CTP insurers’ decisions.
If you’re planning to challenge an insurer’s decision, speak to a specialist car accident injury lawyer first. You’ll have a much better chance of success with a lawyer on your side, and in many cases, your lawyer’s fees will be paid by the CTP insurer.
*Based on SIRA Open Data, May 2024
For motor vehicle accident compensation in NSW, lawyers’ fees are regulated. Lawyers can’t charge to help you lodge your application for personal injury benefits. But if you’re disputing a CTP insurer’s decision, then for most disputes you can engage a lawyer at no cost to you.
There are two types of statutory disputes – paid disputes and unpaid disputes:
*As of May 2024
Law Partners is Australia’s largest specialist personal injury firm, and we have a team of car accident lawyers who can help with your claim. Call us on 13 15 15 for free legal advice, and learn how to get maximum compensation including any lump sums you’re entitled to. We have specialist car accident lawyers in Sydney and Melbourne ready to help.
Tanja Maksimovic
Managing Solicitor
An accredited specialist in personal injury law, backed by over 10 years’ experience in assisting injured Australians receive everything they’re entitled to with their motor accident claim.
Our senior lawyers will assess your case for free.
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