Car Collector Fails in Bid for $122k Insurance Windfall
Car Collector Fails in Bid for $122k Insurance Windfall
8
The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.
A car enthusiast's efforts to boost his insurance payout from $78,000 to $200,000 after his rare vehicle was destroyed by fire have been thwarted.
The dispute began when the owner's 2005 HSV Coupe GTO Z Series succumbed to flames in March of the previous year. RACQ Insurance accepted the total loss and initially valued the vehicle at $68,000.
However, the unsatisfied owner declined this offer, leading to an independent valuation which described the car as being in “good condition for its age and mileage” despite its 315,000km on the odometer.
Although comparable lower-mileage vehicles were advertised above $81,000, the heavy usage severely reduced its collectible appeal, the independent valuer noted. Conclusively, the evaluator deemed the insurer's offer reasonable.
The car owner contested this, alleging RACQ Insurance's assessment was flawed, particularly regarding the engine type and the car's rarity as one of only 60 manual transmission models, asserting its condition was excellent.
In response, RACQ revised their offer to $78,000 factoring in the vehicle's unique modifications and reconditioned engine, but the claimant stood firm in his refusal.
The Australian Financial Complaints Authority (AFCA), upon review, sided with the insurer. AFCA deemed RACQ Insurance's valuation and the independent assessment to be “logical, well-considered and helpful.”
According to Glass's Guide referenced by the AFCA, the vehicle's maximum estimated market value could not exceed $58,100, considering its age and mileage. Although rare, evidence was insufficient to justify a $200,000 evaluation.
The AFCA stated, “The complainant has not provided persuasive evidence to demonstrate the vehicle's worth is beyond what the insurer offered. Under such conditions, adjusting the settlement upward would not be justifiable.”
Reference: Original findings from the Australian Financial Complaints Authority's ruling were sourced from RACQ Insurance's appeal letter. Read more about the decision here.
CHU, Australia's leading strata insurance underwriting agency, has significantly increased its capacity to underwrite individual strata risks, now offering coverage up to $690 million. This substantial rise from the previous limit of $300 million is a strategic response to the evolving landscape of strata developments, which are becoming larger and more complex. - read more
The Insurance Council of Australia (ICA) has called for significant reforms to Victoria's strata legislation, citing a direct link between inadequate governance and escalating insurance premiums for residents. With approximately one in five Victorians living in strata-titled properties, the need for effective management and oversight has become increasingly critical. - read more
The Australian construction insurance market has experienced a notable shift in 2025, with premiums decreasing across various lines due to intensified competition among insurers. According to Marsh's Construction Insurance Market Update 2025, the first half of the year saw average premium reductions ranging from 5% to 15%, marking a significant departure from the upward trend observed in 2024. - read more
Australia's construction sector continues to grapple with elevated cost pressures, prompting builders to reassess their insurance and risk management strategies. Gallagher reports that overall construction costs have increased by over 30%, influenced by supply chain disruptions, inflation, and labour shortages. - read more
The South Australian Government has taken decisive action to bolster homeowner protection in response to a surge in builder insolvencies. Effective from 1 October 2025, the maximum insurance payout for homeowners will increase from $150,000 to $250,000. This measure aims to provide greater financial security to homeowners left with incomplete or defective properties due to builder failures. - read more
Owning a caravan opens up a world of adventures across Australia, but it also brings certain risks. Having the right caravan insurance is essential for protecting your investment against accidents, theft, and unforeseen events. The importance of caravan insurance cannot be overstated for Australian owners, given the unique challenges presented by travel and storage conditions across various terrains and climates. - read more
The caravan lifestyle is experiencing a remarkable surge in popularity across Australia. Recent years have seen a significant increase in the number of individuals and families embracing the nomadic way of life, traveling across the country in caravans. - read more
Caravanning has seen a rise in popularity across Australia, with many discovering the joys of hitting the open road and exploring the vast landscapes that the country has to offer. From coastal trips to inland adventures, caravanning provides the flexibility and freedom that many travelers are seeking. - read more
Setting off on a caravan trip is an exciting adventure, but before you hit the open road, it's essential to ensure your caravan is in top-notch condition. Performing pre-trip checks can make the difference between a memorable journey and a disastrous one. - read more