Income Insurance Online :: News
SHARE

Share this news item!

Car Collector Fails in Bid for $122k Insurance Windfall

Car Collector Fails in Bid for $122k Insurance Windfall

Car Collector Fails in Bid for $122k Insurance Windfall?w=400

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.

A car enthusiast's efforts to boost his insurance payout from $78,000 to $200,000 after his rare vehicle was destroyed by fire have been thwarted.

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

Rising Claims Challenge Australia's Compensation Scheme of Last Resort
Rising Claims Challenge Australia's Compensation Scheme of Last Resort
22 Apr 2026: Paige Estritori
Australia's Compensation Scheme of Last Resort (CSLR) is facing significant pressure due to a surge in claims linked to failed financial products. This uptick has led the Insurance Council of Australia (ICA) to call for structural reforms to ensure the scheme's sustainability. - read more
Escalating Professional Indemnity Claims in Australia's Financial Services Industry
Escalating Professional Indemnity Claims in Australia's Financial Services Industry
22 Apr 2026: Paige Estritori
Australia's financial services sector is currently experiencing a notable increase in professional indemnity (PI) claims, driven by intensified regulatory scrutiny and recent legal actions. This trend has significant implications for professionals and insurers operating within the industry. - read more
NSW Builders Required to Obtain Professional Indemnity Insurance by July 2026
NSW Builders Required to Obtain Professional Indemnity Insurance by July 2026
22 Apr 2026: Paige Estritori
Effective 1 July 2026, all registered building practitioners in New South Wales (NSW) will be mandated to hold professional indemnity (PI) insurance, as stipulated by the Design and Building Practitioners Act 2020. This legislative change aims to enhance accountability and protect clients from potential financial losses due to professional negligence or defects in construction work. - read more
NSW Productivity Commissioner Advocates for Immediate Ban on Strata Manager Commissions
NSW Productivity Commissioner Advocates for Immediate Ban on Strata Manager Commissions
22 Apr 2026: Paige Estritori
In a significant development for New South Wales' housing sector, Productivity Commissioner Peter Achterstraat has called for the prompt elimination of commissions received by strata managers. This recommendation aims to bolster transparency and affordability within the state's burgeoning strata housing market. - read more
CHU's 2025 Strata Market Report: Stability in Strata Insurance Amid Rising House Insurance Costs
CHU's 2025 Strata Market Report: Stability in Strata Insurance Amid Rising House Insurance Costs
22 Apr 2026: Paige Estritori
In its recently released 2025 State of the Strata Market report, CHU, Australia's leading strata insurance underwriting agency, provides an insightful analysis of the current landscape of strata insurance. The report underscores a notable stability in strata insurance premiums, which have seen a modest increase of 2.8% over the past year, rising from $954 to $981 per lot annually. This increment is significantly lower than the 14% surge observed in house insurance premiums during the same period. - read more
Click for more Insurance News


Life Insurance Articles

Deciphering Your Policy: A Beginner's Guide to Insurance Terminology
Deciphering Your Policy: A Beginner's Guide to Insurance Terminology
Welcome to the world of insurance – a domain where words like 'deductible' and 'premium' can significantly impact your financial protection and peace of mind. As a beginner, grasping the basics of insurance terminology is the first step towards making informed decisions about the policies that safeguard your assets and future. In this guide, we will embark on a journey through the language of insurance, which can often seem as complex as the policies themselves. - read more
5 Key Factors to Consider When Shopping for Income Protection in Australia
5 Key Factors to Consider When Shopping for Income Protection in Australia
Welcome to our comprehensive guide on securing your financial future in Australia. In a world of uncertainties, income protection insurance plays a critical role in maintaining your financial security and peace of mind. - read more
Income Protection Insurance: Understanding Waiting Periods and Benefit Periods
Income Protection Insurance: Understanding Waiting Periods and Benefit Periods
Income protection insurance is a financial product designed to support individuals in the event that they are unable to work due to illness or injury. This type of insurance provides a regular income, helping to replace a portion of lost earnings and meet daily living expenses. Virtually anyone earning an income, especially those with financial dependents or significant debts, should consider the peace of mind that income protection can offer. - read more
From Illness to Injury: Understanding the Scope of Income Protection Insurance
From Illness to Injury: Understanding the Scope of Income Protection Insurance
In the uncertain times we face today, where both health and economic climates are unpredictable, safeguarding your financial stability becomes paramount. This is where income protection insurance steps in as an essential safety net. For many Australian families, it's the buffer that ensures life's financial commitments are met, even when ability to work is compromised. - read more
How to Avoid Common Mistakes When Filing an Insurance Claim
How to Avoid Common Mistakes When Filing an Insurance Claim
Filing an insurance claim in Australia can be a daunting process, especially if you are not familiar with the necessary steps and requirements. Claiming insurance is crucial when you need financial support, whether due to a natural disaster, accident, or another unexpected event. - read more

Knowledgebase
Disability Insurance:
A type of insurance protection that pays a portion of a person's income lost due to a total or partial disablement arising from either an accident or a sickness.

Quick Links: | Income Insurance | Income Protection Insurance | Income Insurance For Self-employed | Income Insurance Quotes | Best Income Insurance Australia | Income Insurance For Employees | Income Insurance Comparison | Income Protection For Contractors | Temporary Income Protection | Income Replacement Insurance | Income Protection Policy
This website is owned and operated by Clark Family Pty Ltd (ACN 010 281 008) as Trustee for the Clark Family Trust (ABN 35 957 893 714), 43 Larch Street Tallebudgera QLD 4228. Clark Family Pty Ltd is an Authorised Representative (AR 1298860) of Unique Group Broker Services Pty Ltd (AFSL 509434) for financial product referrals and an Authorised Credit Representative (ACR 401491) of Saccasan Pty Ltd (ACL 386297). Check our licensing details on the ASIC registers: Clark Family Pty Ltd ACR, Clark Family Pty Ltd AR, Saccasan Pty Ltd, Unique Group Broker Services.
IMPORTANT: We act solely as an introducer and refer enquiries to licensed third-party brokers, insurers, and lenders. We do not provide financial product advice or credit assistance. We may receive a fee or commission from these third parties in consideration for the referral. Before any action is taken to obtain a product or service referred to by this website, advice should be obtained (from either the third party to whom we refer you or from another qualified intermediary) as to the appropriateness of obtaining those products having regard to your objectives, financial situation and needs. Whilst we have our own process for validating the legitimacy of our referral partners, you should independently verify the credentials and licensing of any adviser or provider you engage. Visit the ASIC website for further information.