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

Insuregroup's Remarkable Growth in Truck Insurance Policies

21 Feb 2026: Paige Estritori

Insuregroup, a specialist insurance brokerage serving Australia's transport and logistics sector, has recently announced a significant milestone: processing over 10,000 insurance policies since its inception, with a 25% increase in policy volume over the past year. This growth underscores the escalating demand for comprehensive truck insurance solutions tailored to the unique needs of Australian freight operators. - read more

ICA's Strategic Plan to Combat Escalating Motor Insurance Costs

21 Feb 2026: Paige Estritori

The Insurance Council of Australia (ICA) has unveiled a comprehensive report titled 'Motor Insurance Policy Paper - A Roadmap for Reducing Rising Premiums,' addressing the significant 42% increase in comprehensive motor insurance premiums since 2019. This surge has brought the average annual premium to $1,052 in 2024, prompting the need for coordinated action to alleviate the financial burden on consumers. - read more

Heightened Road Risks During Holiday Season: Insurers Issue Warnings

21 Feb 2026: Paige Estritori

As the Australian summer school holidays coincide with peak freight activity, insurers and transport specialists are raising concerns about heightened road risks. The surge in freight traffic, coupled with increased holiday travel, amplifies the potential for road incidents, particularly involving heavy vehicles. - read more