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

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

Tool Theft Claim Falls Short After Portable Items Limit Applied

28 Jun 2026: Paige Estritori

A recent Australian Financial Complaints Authority decision is a timely reminder for tradies that the words in a policy schedule can matter just as much as the headline sum insured. The dispute involved a business that had tools and a trailer stolen from a worksite, then challenged the insurer’s payout after receiving far less than it believed the policy should provide. - read more

HCF Life Appeal Decision Puts Policy Wording Back in Focus

28 Jun 2026: Paige Estritori

A recent Full Federal Court decision involving HCF Life has put renewed attention on one of the most important parts of any life insurance policy: how pre-existing conditions are described, limited and explained to customers. - read more

Cyclone Insurance Savings Offer Relief, But Farmers Still Face a Hard Market

28 Jun 2026: Paige Estritori

The ACCC’s final monitoring report on the Australian Government’s cyclone reinsurance pool offers a cautiously positive signal for parts of northern Australia. Premium relief is showing up in higher cyclone-risk areas, particularly for home, strata and small business policies. For farming families and rural enterprises in exposed regions, that matters: the family home, workers’ accommodation, sheds, workshops and business premises can all sit within the same weather-risk landscape. - read more

New Liability Cover Adds Choice for Australian SMEs

28 Jun 2026: Paige Estritori

Haven Underwriting has expanded its product suite with a new broadform liability offering, adding another option for Australian businesses that rely on customer-facing premises, physical locations and day-to-day public interaction. The cover is backed by Mitsui Sumitomo Insurance capacity and follows Haven’s earlier entry into the market with industrial special risk property cover. - read more

Vero’s New Strata Product Signals a Shift in Cover Placement

27 Jun 2026: Paige Estritori

Vero has entered the residential strata market with a new nil-commission product, initially launching in Far North Queensland and Darwin before a planned national rollout. The move is significant for owners corporations, strata committees and managers because these northern regions are among the most challenging areas in which to secure affordable and suitable building cover. - read more

Click for more Insurance News