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

What the New NSW Disclosure Rules Mean for Strata Cover

09 Sep 2026: Paige Estritori

The latest phase of New South Wales strata reform has brought strata insurance disclosure back into practical focus, moving the issue from policy debate to renewal-season reality for owners corporations. The changes are designed to make it clearer when a strata managing agent, broker, insurer or related party receives a commission, fee or other financial benefit connected with arranging insurance. - read more

What a Steadier Life Insurance Market Means for Employers

09 Sep 2026: Paige Estritori

Fresh life insurance performance data from APRA points to a market that is steadier than the disrupted conditions seen in recent years, but not one where employers can afford to be passive. For CFOs, HR leaders and directors, the message is less about a single quarterly result and more about the operating environment behind corporate life insurance pricing, claims service and product design. - read more

Why NSW Levy Reform Matters for Trade Businesses

09 Sep 2026: Paige Estritori

A fresh push to reform how NSW funds emergency services has put insurance affordability back in the spotlight, especially for small businesses that already feel every increase at renewal time. The issue centres on the Emergency Services Levy, which is applied through many insurance policies and has long been criticised by parts of the insurance sector as a disincentive to maintaining adequate cover. - read more

New APRA rules put insurer systems under the spotlight

09 Sep 2026: Paige Estritori

Australia’s tougher operational risk regime is sharpening the focus on how life insurers manage the systems, partners and processes that sit behind every policy. APRA’s CPS 230 standard requires regulated insurers to identify critical operations, set clear disruption tolerances and strengthen oversight of material service providers. For customers, this is not just a back-office compliance story. - read more

Why Claims Handling Scrutiny Matters for Business Owners

09 Sep 2026: Paige Estritori

Fresh compliance attention on life insurance claims handling is a timely reminder that cover is only valuable if it can respond clearly and efficiently when a business is under pressure. Recent industry monitoring has again highlighted familiar issues for life insurers, including claim delays, communication gaps, repeated evidence requests and the need for more consistent support where customers are vulnerable or dealing with complex medical events. - read more

Click for more Insurance News