Antique Car Claim Hits the Brakes: Home Insurance Does Not Cover Vehicle Damage
Antique Car Claim Hits the Brakes: Home Insurance Does Not Cover Vehicle Damage
3
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.
The Insurance Council of Australia (ICA) has released a policy paper titled 'Motor Insurance Policy Paper - A Roadmap for Reducing Rising Premiums,' highlighting the urgent need for coordinated action to address systemic cost drivers behind the 42% increase in comprehensive motor insurance premiums since 2019. - read more
In a remarkable achievement, Budget Direct has been honoured as the inaugural 'Insurer of the Year' at the 2026 Finder Provider of the Year Awards. This prestigious recognition underscores the company's unwavering commitment to delivering exceptional value and service to Australian policyholders. - read more
Recent findings from the PwC Insurance Banana Skins Survey have raised concerns about the preparedness of Australian insurers in managing emerging risks, particularly in the realms of cyber security and artificial intelligence (AI). The survey indicates that Australian insurers scored 6.6% lower on the Preparedness Index compared to their global counterparts, highlighting a significant gap in readiness. - read more
In a notable development for the Australian insurance market, commercial insurance rates experienced a substantial decline of 12% in the fourth quarter of 2025. This decrease, as reported by Marsh's Global Insurance Market Index, represents the most significant drop among the eight regions monitored and marks the steepest reduction since the Pacific rates began to decrease in early 2024. - read more
The Australian Treasury has commenced a consultation process aimed at improving the effectiveness of professional indemnity (PI) insurance, with the goal of strengthening the Compensation Scheme of Last Resort (CSLR). This initiative seeks to gather stakeholder feedback on the current operation of PI insurance and explore opportunities for enhancement. - read more
As a rural farmer, protecting your livelihood should be a top priority. Farm insurance is crucial because it safeguards your investment and income against unforeseen events such as natural disasters, accidents, and theft. - read more
If you are running a farm, you already know that it is more than just a business; it's a way of life. Your farm is a culmination of hard work, valuable resources, and significant financial investments. - read more
In the world of farming, risks are an everyday reality. Whether you're dealing with unpredictable weather, pest invasions, or fluctuating market prices, the uncertainties can be overwhelming. This is where farm insurance comes into play. - read more
The serene morning mists settling over green pastures and the peaceful clucking of poultry might paint an idyllic picture of farm life, but seasoned farmers know that this lifestyle comes with its own set of risks and uncertainties. In the world of agriculture, each new day could bring events that threaten your way of life and the heart of your business. This is where farm insurance becomes not just important, but essential. - read more
Welcome to our comprehensive guide on comparing insurance options for mixed farming. As a rural farm owner, you face unique challenges that require specialized insurance coverage to protect your livelihood. - read more
Knowledgebase
Depreciation: The reduction in the value of an asset over time, used in insurance to calculate the actual cash value of property.
