Unsecure Vehicle Leads to Rejected Insurance Claim

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.

According to a ruling from the Australian Financial Complaints Authority (AFCA), Auto & General Services rejected the claim on the grounds that the owner left the car unlocked and unattended with keys inside. This incident underscores the importance of basic security measures in protecting one's assets.

The car owner had parked at his parents’ home for a morning visit. Despite conceding the car was left unlocked with the keys, he contested that it wasn't unattended. He explained that he, along with friends and family, had a view of the vehicle from inside the house where they were watching a basketball game. Additionally, he argued that his sister-in-law was outside near the vehicle’s parking spot.

Contrary to these claims, the insurer pointed out that it took more than 45 minutes for the theft to be noticed. They also found that the sister-in-law was not present in the garden when the theft occurred. The AFCA sided with the insurer, stating that the individuals inside were "not looking at, or paying attention to, what was happening outside, but rather were watching basketball and chatting."

AFCA emphasized that the insurance policy specifically required the vehicle not to be left unsecured and unattended "for any time period." This condition was breached, they noted, since reasonable efforts to safeguard the car were not taken.

The complainant further argued that with modern technology, the car could have been stolen even without the keys inside. However, the authority rebutted, indicating that the vehicle became "an easier target for theft than one which is secured." An AFCA ombudsman observed, “I am satisfied that leaving the key in the car while unattended can reasonably be regarded as being capable of causing or contributing to the theft.”

This case sheds light on the essential, yet often overlooked, practice of securing one's vehicle at all times. While sophisticated methods to steal vehicles do exist, minimum precautions like locking and removing keys make a significant difference in deterring theft. By neglecting these steps, car owners increase the risk their vehicles could be an attractive target for opportunistic thieves.

The original report from Insurance News conveys the message that car insurance policies obligate policyholders to actively secure their vehicles. This ensures that in the unfortunate event of theft, insurance protection is not compromised by preventable lapses.

Published:Thursday, 31st Oct 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

Why rising builder failures matter for contract works cover

17 Sep 2026: Paige Estritori

Australia's construction sector remains under pressure, with recent insolvency figures continuing to show building and construction as one of the most exposed parts of the economy. Higher material costs, tight margins, labour shortages, delayed payments and fixed-price contract stress have all contributed to a tougher operating environment for builders, subcontractors and project owners. - read more

How Softer Truck Sales Can Affect Insurance Decisions

17 Sep 2026: Paige Estritori

Recent transport industry sales updates point to a more selective new-truck market, with operators weighing replacement timing against finance costs, emissions planning, availability and contract confidence. For truck businesses, that matters well beyond the showroom. A change in buying momentum can flow through to vehicle values, repair economics, insurer appetite and the way fleets should set insurance sums before renewal. - read more

Cyber Scam Alerts: What Trade Businesses Should Check Now

17 Sep 2026: Paige Estritori

Fresh small business cyber warnings are a practical reminder that digital risk is no longer just a concern for large companies with complex IT systems. For Australian tradespeople, the most damaging cyber incident may be far simpler: a fake invoice, altered bank details, a compromised email account or a scam message that looks like it came from a supplier, builder, real estate agent or client. - read more

Why Super Service Standards Matter for Your Income Protection

17 Sep 2026: Paige Estritori

ASIC’s continuing focus on superannuation member services has put another practical issue in front of Australian workers: insurance inside super is not just about whether cover exists, but whether members can understand and use it when they need help. Recent regulatory attention on trustee administration, communication and claims support is a timely reminder for anyone relying on salary continuance or income protection benefits through their fund. - read more

What More PBS Trucking Means for Insurance Cover

17 Sep 2026: Paige Estritori

Recent transport industry reporting has again highlighted growing interest in Performance Based Standards vehicles and other high-productivity truck combinations across Australia. For operators, the attraction is clear: fewer trips, better payload efficiency and stronger productivity on approved routes. For insurers, however, the shift is not simply a matter of adding another truck to the schedule. PBS combinations can alter exposure across vehicle value, route compliance, load responsibility, driver capability and recovery after an incident. - read more

Click for more Insurance News