Car Collector Fails in Bid for $122k Insurance Windfall

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 dispute began when the owner's 2005 HSV Coupe GTO Z Series succumbed to flames in March of the previous year. RACQ Insurance accepted the total loss and initially valued the vehicle at $68,000.

However, the unsatisfied owner declined this offer, leading to an independent valuation which described the car as being in “good condition for its age and mileage” despite its 315,000km on the odometer.

Although comparable lower-mileage vehicles were advertised above $81,000, the heavy usage severely reduced its collectible appeal, the independent valuer noted. Conclusively, the evaluator deemed the insurer's offer reasonable.

The car owner contested this, alleging RACQ Insurance's assessment was flawed, particularly regarding the engine type and the car's rarity as one of only 60 manual transmission models, asserting its condition was excellent.

In response, RACQ revised their offer to $78,000 factoring in the vehicle's unique modifications and reconditioned engine, but the claimant stood firm in his refusal.

The Australian Financial Complaints Authority (AFCA), upon review, sided with the insurer. AFCA deemed RACQ Insurance's valuation and the independent assessment to be “logical, well-considered and helpful.”

According to Glass's Guide referenced by the AFCA, the vehicle's maximum estimated market value could not exceed $58,100, considering its age and mileage. Although rare, evidence was insufficient to justify a $200,000 evaluation.

The AFCA stated, “The complainant has not provided persuasive evidence to demonstrate the vehicle's worth is beyond what the insurer offered. Under such conditions, adjusting the settlement upward would not be justifiable.”

Reference: Original findings from the Australian Financial Complaints Authority's ruling were sourced from RACQ Insurance's appeal letter. Read more about the decision here.

Published:Wednesday, 24th Jul 2024
Author: Paige Estritori
Sources

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

Share this news item:

Insurance News

Clear

Key Challenges for Australian Insurers in 2026: Premiums, Cybersecurity, and Talent

20 Mar 2026: Paige Estritori

As the Australian insurance industry progresses through 2026, it faces a trio of significant challenges: escalating premium costs, increasing cyber threats, and a tightening labour market. These issues are reshaping the sector's priorities and strategies. - read more

Significant Decline in Australian Commercial Insurance Rates in Late 2025

20 Mar 2026: Paige Estritori

In the final quarter of 2025, Australia's commercial insurance sector experienced a notable 12% reduction in rates, marking the most substantial decrease among eight regions monitored by Marsh Risk's Global Insurance Market Index. This trend reflects a broader global pattern of declining insurance rates, with the composite index falling for the sixth consecutive quarter. - read more

Upcoming 4.41% Increase in Australian Private Health Insurance Premiums

20 Mar 2026: Paige Estritori

Starting 1 April 2026, Australians will face an average increase of 4.41% in private health insurance premiums, marking the most significant rise since 2017. This adjustment comes in the wake of escalating healthcare costs and increased utilisation of health services. - read more

ICA Advocates for Overhaul of Civil Liability Laws Amid Rising Insurance Premiums

20 Mar 2026: Paige Estritori

The Insurance Council of Australia (ICA) has recently released a white paper highlighting the urgent need for reforms to state and territory civil liability laws, which have remained largely unchanged for nearly 25 years. These outdated laws are contributing to significant increases in public liability insurance premiums, affecting a wide range of businesses across the nation. - read more

Severe Hailstorms Lead to Sharp Decline in Insurance Industry Profits

20 Mar 2026: Paige Estritori

The Australian insurance industry has experienced a notable decline in profits during the December quarter, primarily due to severe hailstorms that occurred in October and November. According to data from the Australian Prudential Regulation Authority (APRA), the general insurance sector reported a net profit of $132 million for the quarter, bringing the annual total to approximately $5.8 billion. This marks a decrease from the $6.8 billion profit recorded in 2024. - read more

Click for more Insurance News