Antique Car Claim Hits the Brakes: Home Insurance Does Not Cover Vehicle Damage

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.

In an intriguing turn of events, a dedicated car enthusiast's claim for damages to his vintage vehicle under home insurance has been denied after a careful review by the Australian Financial Complaints Authority (AFCA).

The individual's relic, a 1970 Mercedes-Benz 280e sedan, which was being lovingly restored and was far from operational, rolled into an adjacent van following the snap of a winch cable.

The car owner had filed for the losses with his insurer, Allianz, under the impression that the stationary state of his classic automobile placed it outside the category of a motor vehicle, which would typically be excluded from home insurance coverage. The claim also included potential legal liabilities related to the damage inflicted upon the neighbor's property.

However, Allianz stood firm on the grounds of their policy, which explicitly excludes motor vehicles, setting the stage for AFCA’s involvement to help settle the matter. The authority consulted both dictionary and legal definitions during its adjudication to arrive at a conclusion.

The decision was crystal clear. Although the prized Mercedes was not road-ready, it was undeniably a car, designed for motor propulsion and fit for highway use. Conclusively, for all intents and purposes regarding the claim, the car was classified as a motor vehicle.

Additionally, the authority addressed the aspect of legal liability, stating that while it may have been a legitimate claim, the insurance policy in question conveniently draws a line, omitting any claims connected to the ownership or operation of a 'mechanically propelled vehicle.'

The underlying fact, as pointed out by AFCA, was that any car functions through mechanical propulsion, dovetailing with its design intent. Thus, the Mercedes, regardless of its non-functional state, was subject to the same rules, exempting the legal liability concerns from the policy's scope of coverage.

Despite the setback for the claimant in terms of coverage, AFCA noted an oversight by the insurer during its claims process. Allianz overlooked the policyholder's legal liability concerns without due consideration, an error that led to frustration and inconvenience for the customer. In light of this, AFCA has ruled that Allianz compensate the claimant with AUD 1,000 for non-financial losses sustained as a result of the claim handling process.

Published:Wednesday, 24th Apr 2024
Author: Paige Estritori

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.

Share this news item:

Insurance News

Australian Insurers Advocate for Stronger Consumer Protection Laws

02 Apr 2026: Paige Estritori

The Insurance Council of Australia (ICA) has expressed strong support for the proposed Competition and Consumer Amendment (Unfair Trading Practices) Bill 2026. This legislation seeks to introduce a general prohibition on unfair trading practices within Australian Consumer Law, thereby enhancing regulatory powers to address predatory operators in the insurance industry. - read more

APRA Takes Action Against Unjustified Commercial Auto Insurance Premium Increases

02 Apr 2026: Paige Estritori

The Australian Prudential Regulation Authority (APRA) has implemented emergency measures to address significant concerns within the commercial auto insurance sector. In response to widespread industry protests over substantial premium increases, APRA has introduced regulations aimed at safeguarding transport operators from financial hardship. - read more

Significant Decline in Australian Commercial Insurance Rates Observed

02 Apr 2026: Paige Estritori

Recent data from Marsh Risk's Global Insurance Market Index indicates a substantial decline in Australian commercial insurance rates. In the fourth quarter of 2025, rates fell by 12%, representing the most significant drop among the eight regions monitored by the index. This trend continues the downward trajectory observed since early 2024. - read more

Regulatory Review of Life Insurance Premium Practices in Australia

01 Apr 2026: Paige Estritori

In June 2025, the Australian Securities and Investments Commission (ASIC) and the Australian Prudential Regulation Authority (APRA) provided an update on their joint review of life insurance premium practices. This initiative was prompted by concerns over frequent and substantial premium increases that may not align with policy terms or policyholder expectations. - read more

Ongoing Deficiencies in Direct Life Insurance Sales Practices Identified by ASIC

01 Apr 2026: Paige Estritori

In August 2025, the Australian Securities and Investments Commission (ASIC) released findings from a review of direct life insurance sales practices, uncovering persistent deficiencies despite previous regulatory interventions. - read more

Click for more Insurance News

Farm Insurance Articles

Safeguarding Your Harvest: The Importance of Crop Insurance

In the ever-unpredictable world of farming, crop insurance emerges as a pivotal ally for farmers, hedging against the myriad of risks that come with cultivating the land. As the first step to understanding this crucial safeguard, let's unfold the question: What is crop insurance, exactly? In essence, crop insurance is a type of cover designed to cushion farmers from financial losses due to unavoidable circumstances such as adverse weather conditions, pests, disease, or even market fluctuations. - read more

Farm Insurance Comparison: Secure Your Farm with the Right Coverage

As a farm owner, your livelihood depends not only on the hard work you put in but also on the protection you have in place against unforeseen events. Farm insurance is crucial in safeguarding your investments, ensuring that your operations can continue smoothly even when faced with unexpected challenges. - read more

Essential Coverage: The Top Insurance Policies Every Australian Farmer Should Consider

Welcome to a critical discussion surrounding the stability and protection of your farming enterprise. In the unpredictable world of agriculture, insurance plays a pivotal role in safeguarding the future of your business. As we delve into the intricacies of insurance coverage, we aim to establish a strong foundation for enduring success in the farming industry. - read more

On-Farm Safety: Insurance Tips to Minimize Accidents and Liability

For Australian farmers, every day presents a complex web of activities that demand not only their physical toil but also a keen attention towards safety. On-farm safety is paramount and is the shield that guards the well-being of both workers and operations in Australia's diverse agricultural landscape. It's not just about the immediate repercussions of accidents, but also their long-term impact on a farm's viability. - read more

Risk Mitigation: Best Practices for Rural Farmers

Risk mitigation is a strategy used to prepare for and lessen the effects of potential risks faced by rural farmers. It involves identifying potential threats and taking proactive steps to minimize their impact. - read more

Knowledgebase

Insurance Policy Excess:
The amount you will have to contribute when you make a claim.

This website is owned and operated by Clark Family Pty Ltd (ACN 010 281 008) as Trustee for the Clark Family Trust (ABN 35 957 893 714), 43 Larch Street Tallebudgera QLD 4228. Clark Family Pty Ltd is an Authorised Representative (AR 1298860) of Unique Group Broker Services Pty Ltd (AFSL 509434) for financial product referrals and an Authorised Credit Representative (ACR 401491) of Saccasan Pty Ltd (ACL 386297). Check our licensing details on the ASIC registers: Clark Family Pty Ltd ACR, Clark Family Pty Ltd AR, Saccasan Pty Ltd, Unique Group Broker Services.

IMPORTANT: We act solely as an introducer and refer enquiries to licensed third-party brokers, insurers, and lenders. We do not provide financial product advice or credit assistance. We may receive a fee or commission from these third parties in consideration for the referral. Before any action is taken to obtain a product or service referred to by this website, advice should be obtained (from either the third party to whom we refer you or from another qualified intermediary) as to the appropriateness of obtaining those products having regard to your objectives, financial situation and needs. Whilst we have our own process for validating the legitimacy of our referral partners, you should independently verify the credentials and licensing of any adviser or provider you engage. Visit the ASIC website for further information.