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
Source: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

Share this news item:

Insurance News

Western Australia's Transport Sector Pushes for Enhanced Truck Licensing Standards

17 Mar 2026: Paige Estritori

Western Australia's transport industry is urging the state government to implement more stringent heavy vehicle licensing requirements, aiming to bolster road safety and ensure drivers possess adequate experience. This initiative follows South Australia's recent reforms, which introduced tougher conditions for truck drivers after a tragic triple fatality in 2024. - read more

Aon's 2026 Report Highlights Escalating Climate Risks for Australian Businesses

17 Mar 2026: Paige Estritori

Aon plc, a leading global professional services firm, has released its 2026 Climate and Catastrophe Insight report, shedding light on the escalating climate-related risks facing Australian businesses. The report indicates that insured catastrophe losses in Australia totaled an estimated US$2.9 billion in 2025, underscoring the growing financial impact of climate events on the insurance sector. - read more

Navigating Rising Premiums and Cybersecurity Risks in Australia's Insurance Sector

16 Mar 2026: Paige Estritori

As we progress through 2026, Australia's insurance industry is grappling with significant challenges that are reshaping the landscape for both insurers and policyholders. Two primary concerns have emerged at the forefront: the affordability of premiums and the escalating threat of cyber incidents. - read more

Introducing Backd: Affordable Insurance for Casual and Contract Workers

15 Mar 2026: Paige Estritori

In a significant move to address the insurance needs of Australia's growing casual and contract workforce, TAL has partnered with global insurtech company Cover Genius to launch Backd. This innovative digital-only insurance product aims to provide accessible and affordable life and income protection coverage to workers who have traditionally faced challenges in obtaining such protection. - read more

Zurich's Home Loan Protection: Tailored Insurance for Mortgage Holders

15 Mar 2026: Paige Estritori

Zurich has unveiled its Home Loan Protection (HLP) product, a new insurance offering that combines life and income protection benefits tailored specifically for mortgage holders. This innovative cover automatically adjusts its premiums as the insured's mortgage balance decreases, ensuring that policyholders are only paying for the coverage they need. - read more

Click for more Insurance News

Farm Insurance Articles

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

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

New Technologies in Crop Protection: How Precision Agriculture Enhances Insurance Coverage

For generations, farmers have faced the challenge of protecting their crops from an array of threats, such as pests, diseases, and extreme weather. Traditional crop protection strategies have relied heavily on blanket approaches, as in using widespread pesticide application, or generalized irrigation systems, regardless of the varying needs across a field. While these methods have had their successes, they also come with limitations in efficiency, environmental impact, and the precision needed for optimal crop health and yield. - read more

Are You Covered? Common Insufficient Coverage Mistakes in Farm Insurance

Welcome to our discussion on farm insurance, a vital aspect for anyone involved in agriculture. Whether you run a smallholding or manage extensive agricultural operations, understanding your insurance coverage can make all the difference in safeguarding your livelihood. - read more

Preparing for the Unexpected: A Farmer's Guide to Comprehensive Weather-Related Insurance

Farmers are no strangers to the whims of nature. The weather, with its unpredictable temperament, can have a profound impact on farming operations. A single storm can lay waste to crops, while a prolonged drought can jeopardize the health of livestock and lead to severe economic strain. Understandably, the uncertainty that weather brings is one of the largest variables in a farmer's success equation. - read more

Knowledgebase

Disability Insurance:
A type of insurance protection that pays a portion of a person's income lost due to a total or partial disablement arising from either an accident or a sickness.

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 do not provide financial product advice or credit assistance. We act solely as an introducer and refer enquiries to licensed third-party intermediaries, insurers, and lenders - with whom you can then deal directly. 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 always verify the credentials of your financial adviser before proceeding with recommendations that they may present. Visit the ASIC website for further information.