Car Collector Fails in Bid for $122k Insurance Windfall
Car Collector Fails in Bid for $122k Insurance Windfall
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.
Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.
A recent Fleet Auto News report has put a timely spotlight on one of the least glamorous but most important parts of fleet management: incident reporting. Many transport businesses still rely on paper forms, email trails and spreadsheets to record vehicle damage, accidents and minor incidents. Those methods may feel familiar, but they can leave operators with delayed reports, incomplete details and data that is difficult to use when a claim, audit or premium review arrives. - read more
Australia’s general insurance sector is edging closer to a major update to the rules that shape how insurers deal with customers, including small business owners and self-employed tradespeople. Financial Services Minister Daniel Mulino has signalled he wants meaningful progress on the review of the General Insurance Code of Practice, with the industry preparing a redrafted version for consultation. - read more
A fresh warning from Australian medical indemnity underwriter Tego has highlighted a risk that many businesses are only beginning to confront: artificial intelligence may not fit neatly inside existing insurance categories. As AI tools become embedded in diagnosis, administration, client advice, document drafting, fraud detection and customer service, the question is no longer simply whether a mistake occurred. It is also who made the decision, who controlled the system and which policy should respond. - read more
Victoria’s owners corporation reform process has put strata insurance commissions back under the microscope, after the state government opted to further examine an expert panel recommendation to ban certain financial benefits paid to owners corporation managers and related entities. - read more
Australia?s general insurance sector appears to be moving closer to a major reset of its customer standards, with Financial Services Minister Daniel Mulino indicating he wants meaningful progress on the long-running review of the General Insurance Code of Practice. The industry review began in November 2023, produced more than 100 recommendations, and is expected to lead to a redrafted code that is both ASIC-approved and contractually enforceable. - read more
Exploring the great Australian outdoors in a caravan with your furry friends by your side can create unforgettable memories and provide experiences that deepen the bond between you and your pets. The joy found in watching your pet's excitement as they encounter new sights, sounds, and smells is irreplaceable and adds a layer of delight to the adventures ahead. - read more
Caravan insurance is designed to protect your financial interests when you own a caravan. Just like any vehicle or property insurance, it provides coverage for damage, theft, or accidents. Given the unpredictable nature of travel and the investment involved in a caravan, having the right insurance is crucial for peace of mind. - read more
Caravanning in Australia taps into a deep-seated love for adventure and the great outdoors. With vast landscapes and awe-inspiring natural beauty, it's no wonder that hitting the road with a caravan in tow has become a cherished pastime for many Aussies. - read more
A caravan insurance policy is essential for protecting your investment against various risks, such as theft, damage, and accidents. However, your insurance needs may change with time, and your current policy might not offer adequate coverage anymore. That's why it's essential to review your policy at least once a year and make the necessary changes to ensure it still meets your requirements. - read more
Knowledgebase
Term Life Insurance: A form of life insurance that is a pure protection policy with no cash or maturity value which lasts for a specific length of time, called a term.
No comments yet. Be the first to share your thoughts.