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.

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

Clear

AUSactive's New Insurance Offering: Comprehensive Protection at Reduced Costs

27 Apr 2026: Paige Estritori

AUSactive has unveiled a new insurance product tailored specifically for exercise and active health professionals. Developed in partnership with global insurance broker Marsh, this offering provides enhanced protection while delivering lower premiums compared to existing market options. - read more

Key Insights from the 2026 Fitness Trends Report

27 Apr 2026: Paige Estritori

The AusFitness Industry, in collaboration with AUSactive and the American College of Sports Medicine, has released the 2026 Fitness Trends Report, offering valuable insights into the evolving landscape of Australia's fitness industry. The report identifies the top 20 trends, reflecting a sector that is becoming more diverse, data-informed, and inclusive. - read more

AUSactive and Private Healthcare Australia Drive Health Insurance Reforms

27 Apr 2026: Paige Estritori

Following recent legislative changes allowing private health insurers to offer rebates for select natural therapies, AUSactive is collaborating with Private Healthcare Australia (PHA) to lead reforms in private health insurance. This partnership aims to expand access to evidence-based preventive health services, including Pilates, Yoga, Tai Chi, and structured exercise programs delivered by accredited professionals. - read more

Significant Decline in Australian Commercial Insurance Rates in Q1 2026

27 Apr 2026: Paige Estritori

In the first quarter of 2026, the Australian commercial insurance market experienced a notable 12% decline in rates, as reported by Marsh's latest market index. This trend mirrors the previous quarter's decrease, indicating a sustained period of softening premiums. Such developments are particularly relevant for consultants who rely on comprehensive insurance coverage to mitigate professional risks. - read more

Australian Insurers Achieve Robust Revenue Growth in Competitive Market

27 Apr 2026: Paige Estritori

Recent analysis by AM Best reveals that Australia's top ten non-life insurers have collectively reported insurance services revenue nearing $46 billion, marking an 11.1% increase in their latest annual results. This growth underscores the resilience and adaptability of the insurance sector amidst a competitive market landscape, offering valuable insights for consultants navigating the industry. - read more

Click for more Insurance News