The condition of Australia's roads is a hot topic amongst motorists, with many commenting on the damage that builds up over time.
Reddit is a sounding board for Australians airing their grievances about the road condition – one poster brought up, “Why are Australian roads always in such disrepair? Even when a pothole is fixed, the repair seems to immediately begin disintegrating. Moreover, freshly laid roads and freeways seem to begin crumbling within months of being built.”
However, this raises the question of who pays for car repairs when the road damages it? And what damage comes out of your pocket or the council's? Well, it seems that you'll need to pay for the damage yourself in most cases.
Who pays for damages to a car caused by the road?
There are an enormous number of variables when it comes to claiming compensation for damage to your vehicle caused by the roads.
The first variable is whether the damage occurred on a state-controlled, council-controlled or private road (most toll roads in Australia).
State, major highways, and metropolitan roads, as well as council and local streets and connecting areas, operate mostly the same. The council will look at the damage on a case-by-case basis, honouring the claim mostly to the same extent that your local government will.
For private or toll roads, damage is relatively rare due to the higher maintenance budget, and liability often depends on the state's road policy.
Any sort of extensive damage would require litigation to prove that the state has acted negligently with regard to the conditions of its roads.
For the most part, damages will need to come out of your comprehensive insurance, or if you have third-party, you’ll need to pay for repairs out of your pocket.
The legal ambiguity has often been used to the advantage of local councils. The Sydney Morning Herald uncovered in 2021 that councils often just flat out reject claims or are slow to pay, such as Canterbury Bankstown, which received 73 claims for pothole damage and did not pay out any.
Then we have the type of damage.
Who pays for the damage if a tree branch falls on your car?
For the most part, the damages will need to come out of your own pocket or comprehensive car insurance. Damage caused by nature is legally called “an act of nature”, meaning that it's an unfortunate accident that needs to come out of your pocket.
However, if the council has been previously made aware of, say, a dangerous hanging branch, etc, and you can prove it, then you have grounds for remuneration.
Who pays for the damage if a sign, street light or similar damages your car?
If your car is damaged by council property without any wrongdoing from you, then you are able to have your vehicle repaired under a public liability claim.
For the most part, this is a slow process, usually taking a minimum of six weeks to investigate, but it can be lodged online through relevant state governing bodies.
To have a successful claim, you will need to prove that you didn’t run into whatever has damaged your car, and come forward with evidence that the damage caused was by negligence or incorrect upkeep on the local council or state department.
ServiceNSW, for example, will require the following things for a claim: the PDF form – 'Public Liability Claim Form', your personal details, map/diagram of incident location, photographs of the incident location, a photocopy of the driver's licence of the person driving the vehicle at the time, the details of the vehicle that was damaged, photographs of the damage to the vehicle and/or other property, and copies of: two quotes to repair the damage to the vehicle and/or property, or tax invoices for the costs incurred to repair the damage.
Who pays for the damage if a pothole damages your car?
Potholes are probably the most common occurrence to cause damage outside of your control. Each state has different liabilities.
New South Wales will only cover repairs if the pothole was already known to the council/road authority and wasn’t repaired or was repaired incorrectly, which can make claiming difficult.
Victoria will pay out a maximum of $1681 if the road authority has not met its obligations to “maintain and repair roads” under the Road Management Act 2004.
Queensland will not repair wheels unless they were aware of the pothole and failed to fix it. Furthermore, damage to wheels with a tyre aspect ratio of 40 or less will not be accepted for reimbursement.
South Australia noted that "Road defects, such as potholes, can often form quickly across the network, particularly during periods of extreme weather. Generally, where damage is caused to a vehicle due to this natural road deterioration, the Department is not liable for any claims".
Tasmania says that “we do have to respond to road hazards that we are aware of within a reasonable period… at times there will be defects on the road, such as potholes, water or storm debris, but the department will not be liable for those defects”.
Australian Capital Territory follows the same sentiment: it may honour claims, but doesn’t specify what causes the territory to be liable for damages.
Northern Territory does not directly specify whether it will honour claims or not.
Zane Dobie comes from a background of motorcycle journalism, working for notable titles such as Australian Motorcycle News Magazine, Just Bikes and BikeReview. Despite his fresh age, Zane brings a lifetime of racing and hands-on experience. His passion now resides on four wheels as an avid car collector, restorer, drift car pilot and weekend go-kart racer.
