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.

In a cautionary tale for vehicle owners, a policyholder's failure to secure their car against theft resulted in a denied insurance claim after the vehicle was stolen during a family event.

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
Source: Paige Estritori

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

Share this news item:

Insurance News

The Financial Perils of Travelling Uninsured: A Wake-Up Call for Australians

12 Mar 2026: Paige Estritori

Recent research has unveiled a concerning trend: 14% of Australian travellers embark on international journeys without any form of travel insurance. This statistic is even more alarming among younger travellers under 30, with nearly one in four opting to travel uninsured. Such decisions expose individuals to significant financial risks, especially when unforeseen events occur abroad. - read more

IAG CEO Predicts Ongoing Insurance Premium Rises

12 Mar 2026: Paige Estritori

Insurance Australia Group (IAG) has reported a significant 91% increase in net profit for the first half of the 2025 financial year, reaching $778 million. This surge is largely attributed to favourable weather conditions and a reduction in claims. Despite this positive financial performance, IAG's CEO, Nick Hawkins, has indicated that insurance premiums are expected to continue rising, albeit at a slower pace than in previous years. - read more

APRA Data Reveals Steady Performance in General Insurance Intermediaries

12 Mar 2026: Paige Estritori

The Australian Prudential Regulation Authority (APRA) has released its latest bi-annual report on intermediated general insurance, providing insights into market activity for the six months ending June 2025. The data indicates a stable performance among general insurance intermediaries, with total premiums invoiced through intermediaries reaching $21.5 billion. Of this, $17.6 billion was placed with APRA-authorized general insurers, $2.6 billion with Lloyd’s underwriters, and $1.3 billion with unauthorized foreign insurers. - read more