Contact the insurance company or debt collector
If you accept responsibility and are satisfied with the amount being claimed, contact the insurance company or debt collector that's claiming the money from you.
If you can pay or almost pay, you can often negotiate a discount on the amount claimed. Make sure that if you do negotiate a reduced lump sum settlement, you clearly state and confirm that the payment is in "full and final settlement".
If you can't pay, tell the insurance company or debt collector that you're in financial hardship. The insurance company and debt collector have obligations under the General Insurance Code of Practice to consider reasonable repayment arrangements. You need to be prepared to provide reasonable information about your financial situation if requested.
Possible arrangements are:
- an affordable payment plan
- extra time to pay the amount
- a reduced lump sum
- a debt waiver (This is only if you can show you can't pay the debt in the foreseeable future. Usually this is because you're receiving Centrelink, have no significant assets and this situation is unlikely to change.)