A new Code of Conduct was announced on 18 July, 2005, for the smash repair and insurance business. The Code was a result of the Productivity Commission's inquiry into both industries, and the relationships that exist between the two. The Code was introduced by Minister Fran Bailey, and seeks to rectify some of the inequities that exist between the larger insurance organizations, and small repair businesses. The code takes a step beyond current regulation to create a more positive relationship between insurers and consumers, and promote public confidence in the insurance industry.

The Code includes provisions for full disclosure of preferred repairs, issuing quotes, and disclosing whether insurance policies give consumers a choice of providers. The Commission also called for more realistic labour rates as well as repair timeframes to be offered as consumer protections. The insurance industry had previously suggested a Code of their own design, which was rejected as inadequate.

The Code is also designed to speed up the claims and payment processes, and raise standards of service. When a consumer makes a claim, assuming no further information is required, consumers will have a right to a decision within ten business days. The new code will have a major impact on consumers, and provides guidelines so that all consumers understand what they are entitled to expect from their insurers, and have the ability to complain if services are lacking.

Other provisions include a fast-track clause, which will either assign priority to a claim or make an advance payment in cases where loss results in severe hardship. In addition, when insurers select repairers directly, they must take responsibility for the quality of repairs, and handle any complaints that may result from inadequate repairs. Information about the quoting process and choice of repair shops will become transparent.

Insurance carriers that do not meet the standards laid out in the Code may be subject to sanctions. In addition to auto insurance, the code also affects providers of house insurance, business insurance, travel insurance and other types of general insurance. Life and health insurance are not covered under the Code, as these are subject to a different set of regulations. The Code has been praised by the Motor Trade Association of Australia, and the Victorian Automobile Chamber of Commerce.