Unsecure Vehicle Leads to Rejected Insurance Claim
Unsecure Vehicle Leads to Rejected Insurance Claim
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 a cautionary tale for vehicle owners, a policyholder's failure to secure their car against theft resulted in a denied insurance claim after the vehicle was stolen during a family event.
According to a ruling from the Australian Financial Complaints Authority (AFCA), Auto & General Services rejected the claim on the grounds that the owner left the car unlocked and unattended with keys inside. This incident underscores the importance of basic security measures in protecting one's assets.
The car owner had parked at his parents’ home for a morning visit. Despite conceding the car was left unlocked with the keys, he contested that it wasn't unattended. He explained that he, along with friends and family, had a view of the vehicle from inside the house where they were watching a basketball game. Additionally, he argued that his sister-in-law was outside near the vehicle’s parking spot.
Contrary to these claims, the insurer pointed out that it took more than 45 minutes for the theft to be noticed. They also found that the sister-in-law was not present in the garden when the theft occurred. The AFCA sided with the insurer, stating that the individuals inside were "not looking at, or paying attention to, what was happening outside, but rather were watching basketball and chatting."
AFCA emphasized that the insurance policy specifically required the vehicle not to be left unsecured and unattended "for any time period." This condition was breached, they noted, since reasonable efforts to safeguard the car were not taken.
The complainant further argued that with modern technology, the car could have been stolen even without the keys inside. However, the authority rebutted, indicating that the vehicle became "an easier target for theft than one which is secured." An AFCA ombudsman observed, “I am satisfied that leaving the key in the car while unattended can reasonably be regarded as being capable of causing or contributing to the theft.”
This case sheds light on the essential, yet often overlooked, practice of securing one's vehicle at all times. While sophisticated methods to steal vehicles do exist, minimum precautions like locking and removing keys make a significant difference in deterring theft. By neglecting these steps, car owners increase the risk their vehicles could be an attractive target for opportunistic thieves.
The original report from Insurance News conveys the message that car insurance policies obligate policyholders to actively secure their vehicles. This ensures that in the unfortunate event of theft, insurance protection is not compromised by preventable lapses.
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.
Australia’s winter school holiday rush has put travel insurance back in the spotlight, with families heading to Bali, Fiji and Thailand, skiers travelling to New Zealand and domestic holidaymakers chasing either snow or sunshine closer to home. But this year’s peak period is unfolding against a more unsettled backdrop: geopolitical tension, airspace closures, airline disruption and a growing expectation that insurers should do more than reimburse costs after the event. - read more
Australian travellers with pre-existing medical conditions have been given a timely reminder to look beyond price when arranging travel insurance, with recently updated consumer guidance placing renewed emphasis on disclosure, medical assessments and policy wording. - read more
A recent travel insurance dispute reported by Insurance News has put a spotlight on one of the most important parts of any cancellation claim: timing. The case involved a policyholder who argued that a doctor’s declaration that he could not travel overseas was the relevant claimable event, rather than the earlier appearance of illness. The policyholder was successful, reinforcing that the way a medical issue is documented can be just as important as the condition itself. - read more
Southern Cross Travel Insurance (SCTI) has reported a significant increase in domestic travel insurance claims, shedding light on the existing coverage gaps among Australian travellers. In the first eight and a half months of 2025, SCTI settled over $240,000 in claims related to local and interstate trips. - read more
In a significant development within the Australian travel insurance industry, Allianz Partners has announced the acquisition of a substantial portion of nib Group's travel insurance portfolio in Australia and New Zealand. This strategic move, valued at up to A$50 million, marks a pivotal expansion for Allianz Partners in the Asia-Pacific region. - read more
Travel insurance is an essential component of any trip, providing protection and peace of mind for Australian travelers. Whether you are planning a short weekend getaway or an extended overseas adventure, unforeseen circumstances such as medical emergencies, trip cancellations, or lost luggage can quickly derail your plans and drain your finances. - read more
When it comes to travelling abroad, there's more to preparation than just packing the right clothes and booking your flights. For Australian travellers venturing overseas, assembling a financial travel kit is just as vital as a passport. This kit serves as your safeguard, ensuring that even when faced with the unpredictable, your journey remains as smooth as possible. - read more
Planning a trip is always an exciting experience, but it’s essential to be prepared for unexpected events. This is where travel insurance comes in. For Australian travelers, having the right travel insurance can make all the difference, offering peace of mind and financial protection. - read more
Picture this: You're all set for your dream vacation. Suitcases packed, tickets in hand, and the excitement building. But then, an unexpected disappointment hits. Your flight is cancelled. Suddenly, your well-laid plans are thrown into disarray. - read more
For many Australian travellers, setting off on a global adventure is an exciting prospect. Yet, amidst this excitement, it's crucial to acknowledge the unexpected twists and turns that could arise. That's where travel insurance steps in. Not just a safety net, it serves as a vital component of travel planning, providing peace of mind as you explore the world. - read more
Knowledgebase
Incontestability Clause: A provision in a life insurance policy that prevents the insurer from voiding coverage due to a misstatement by the insured after a certain period.
No comments yet. Be the first to share your thoughts.