Car Collector Fails in Bid for $122k Insurance Windfall

8

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
Source: Paige Estritori

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

Share this news item:

Insurance News

Clear

Allianz Australia and AWP Australia Penalised for Misleading Practices

06 Feb 2026: Paige Estritori

In a significant regulatory action, Allianz Australia and its subsidiary, AWP Australia, have been fined $16.8 million for making false and misleading statements to consumers. This penalty underscores the critical need for transparency and honesty within the insurance industry. - read more

Rising Insurance Premiums Challenge Northern Australian Homeowners

06 Feb 2026: Paige Estritori

Homeowners in Northern Australia are grappling with substantial increases in insurance premiums, despite the establishment of a cyclone reinsurance pool intended to alleviate such financial burdens. This situation raises critical questions about the pool's effectiveness and the broader challenges facing the insurance industry in high-risk regions. - read more

Record Profits for Australian Insurers Amid Premium Increases

06 Feb 2026: Paige Estritori

Australia's insurance industry has reported an after-tax profit of $6.1 billion for the year 2024, a figure that is three times higher than the five-year average of $2 billion. This substantial increase in profitability coincides with significant hikes in insurance premiums across various sectors. - read more

Escalating Construction Costs Impact Insurance Claims and Repair Timelines

06 Feb 2026: Paige Estritori

The Australian construction industry is currently grappling with significant cost escalations, which are having a direct impact on insurance claims and repair timelines. According to a recent report by Crawford & Company, various factors are contributing to this trend, including rising material prices, labour shortages, and an increase in builder insolvencies. - read more

IAG Partners with Codafication to Streamline Property Claims Management

06 Feb 2026: Paige Estritori

Insurance Australia Group (IAG), a leading insurer in Australia, has announced a strategic partnership with Brisbane-based insurtech company Codafication to enhance its property claims management process. This collaboration introduces the Crunchwork platform, designed to automate workflows and provide real-time updates to all parties involved in the claims process. - read more

Click for more Insurance News