AAMI insurance

As an addendum to some recent posts about insurance and a number of comments/statements about AAMI, I reproduce below a transcript of a series of emails I had with AAMI Customer Service. It took 6 emails and 6 responses to get an answer to my 5 original questions. Some of the specific points may/will be of interest to you all. The witten advice, contrary to written advice rec'd from GaryinOz (? I think) states that AAMI do cover you when on a club organised outing. I was intrigued at how quick they were to suggest I look elsewhere for insurance, rather than trying to find a way to satisfy my requirements and keep me as a customer. I seem to remember that Gary was also given the same (verbatim) response. Also, I love the bit about allowing only 3 modifications. At least their definition of a modification is pretty narrow so lots of things fall into the category of "accessories".

Anyway, here it is ...

Good morning AAMI. I have 2 vehicles comprehensively insured with you. One of those vehicles is a Four Wheel Drive vehicle and I have some questions about my policy.

1) Does the policy specifically cover the vehicle and occupants, and 3rd parties and 3rd party property, when I am 4WD'ing on un-gazetted tracks?
2) Are there any limitations on, or exclusions from, the cover when 4WD'ing. For example, I understand I am not covered if participating in a competition, but what constitutes a competition?
3) Am I covered if 4WD'ing with an organised group such as on a tag-a-long tour or a club outing?
4) If I make modifications to my vehicle, what information do you require? For example, I have fitted PolyAir springs (an airbag suspension support to level the vehicle when loaded) to the rear suspension. If I fit new (more expensive) "off-road" tyres, do I need to tell you, in order to have them covered? If I make suspension, or other mechanical modifications, what do you require from me to ensure ongoing cover?
5) Do you have any restrictions on modifications I can make?

Regards and thanks
Rohan

Dear Rohan,
thank you for your email. AAMI will not cover your vehicle if it was being used or tested in or for a race, trial, test or contest or if the vehicle was being used on a competition circuit, course or arena. However if you are 4WD'ing with an organised group or club, then you are covered, providing that the outing did not incorporate a race for example. The cover that AAMI provides is nation wide and will cover you regardless if you are on a track or a main road. However we anticipate that the driver does take all reasonable precautions to secure the safety of the vehicle. The legal liability cover will also apply when you are 4WD'ing. However injury to occupants and other third parties is generally covered by your Compulsory Third Party Insurance when you purchase car registration. If you make modifications to your car, AAMI must be notified of these to ensure that they are covered in the event of a claim. Changes to 'off road' tyres will not need to be noted on the policy, they will be automatically covered. AAMI does have restrictions on the number of modifications that you make to your car, however these generally related to performance enhancing modifications. However to be sure that you are adequately covered, it is best to disclose all details to AAMI. If you have any further queries, please do not hesitate to email us. If you would like to update your car insurance policy, please reply to this email with your policy number and/or car registration number, your date of birth and mailing address as it appears on your policy.

Regards,
D
AAMI eBusiness aami.com.au

D, thanks for the reply. Can you please clarify the first point, in relation to use of the vehicle `on a competition circuit, course or arena'? I have no immediate intention to do any of these things. However, if I were to travel to one of the recognised private 4WD "parks" such a (Toyota) Landcruiser Park in QLD (which is a privately owned camping and 4wheeling property), and drive along a 4WD track that had been used earlier that day as a competition/contest course, even though I was not competing, would I be covered? This is an important question to many 4x4 owners as they attend these parks to watch events and then use the same tracks after the event has finished. Also, a recent inquiry from a potential AAMI customer regarding coverage whilst on an organised 4WD club trip was met with a "you are not covered whilst on organised club trips" response from AAMI. As I am considering club membership, to perhaps travel with others (more safely), I need to ensure I have the definitive answer regarding coverage. If not covered, I will not be able to participate in club outings, which is a result contrary to the whole concept of increasing safety and reducing the risk of cost/damage. Regarding vehicle modifications: I propose fitment of a roof-rack (as distinct from roof bars); improving the suspension for towing/load carrying with after-market suspension (this will probably result in an increase in the vehicle height of less than 50 mm when unloaded) and replacing the inadequate standard tyres with All Terrain type tyres (this will require an engineers certificate to meet ADR requirements. Would you require a copy?), replacing the plastic under-body front protection plate with a stronger (better protection) alloy plate, fitting appropriate recovery hooks/points to the front of the vehicle and, last but not least, fitting some decent driving lights. Can you confirm if these proposed vehicle enhancements are acceptable or not, to retain fully coverage, please. Regards, and thanks for your assistance.

Rohan

Dear Rohan,
thank you for your reply. As per page 20 of AAMI's Motor Insurance Policy booklet, your vehicle would not be covered if it were being used on a competition circuit, course or arena. This applies even if you are not competing at the time. As AAMI would therefore not be able to provide adequate cover for your four-wheel-driving, we suggest that you seek an alternative insurer. You may wish to visit the Australian National Four Wheel Drive Council (ANFWDC) at

Yours Sincerely,
Z
AAMI eBusiness

Z, thanks for the quick response. I had already read page 20, but don't believe it clarifies this issue sufficiently. Hence my question via email. I am still not sure I understand the logic and so put this to you. If I was driving upon Mount Panorama the day after the Bathurst 1000 motor race and had an accident, am I covered? Mount Panorama is both a public road and a racing (competition) circuit. If the answer were that I would be covered, why is this different to driving on a track after it is no longer being used for competition? What if I unknowingly drove along a track that one week earlier had been used as part of the Outback Challenge (a 4WD competition event)? I do not, at this stage, wish to seek an alternative insurer. I do, however, need to fully understand what is and is not permissible/acceptable under my policy with you so I can avoid doing anything that may void my insurance cover. To that end, would you please provide answers to my questions #2 and #3, below?

Regards
Rohan

Dear Rohan,
thank you for your reply. If you were driving on Mount Panorama when it is used as a public road, you would be fully covered. Similarly, if your were unknowingly driving along a track that was used as part of the Outback Challenge, you would also be fully covered. These two situations may be technically competition circuits, but they are also 'multi-purpose'. When these are used in a public capacity, you are fully covered. In contrast, if you drove your vehicle on a racetrack (specifically built for racing), you would not be covered. This is due to you knowingly driving on a competition circuit that is not multi-purpose. The AAMI comprehensive car policy does not make any distinctions regarding club outings or tag-along tours, you will be fully covered in this regard. If you have any further questions, please do not hesitate to contact us.

Regards,
DB
AAMI eBusiness

Thanks for your reply DB. Based upon it, I would also contend, as put in my original email, that if I were to drive upon a 4x4 track that was a multipurpose track and which had been used earlier that day (or even days before) as a competition track, I should be covered, as such a scenario falls within the acceptable usage described by you below. The tracks I mention in my original questions are usually existing tracks, which have been converted to a competition track for a particular event, following which they revert to their original usage. Your second comment confirms that I would be covered whilst on 4WD club outings and/or tag-a-long tours/trips (provided, of course, they were not competitions or on a competition track). All that's left now are responses to my questions #4 and #5, being:
4) If I make modifications to my vehicle, what information do you require? For example, I have fitted PolyAir springs (an airbag suspension support to level the vehicle when loaded) to the rear suspension. If I fit new (more expensive) "off-road" tyres (as distinct from "road tyres"), do I need to tell you, in order to have them covered? If I make suspension, or other mechanical modifications, what do you require from me to ensure ongoing cover?
5) Do you have any restrictions on modifications I can make to my 4x4? Specifically, what are they?

Regards
Rohan

Dear Rohan,
thank you for your reply. AAMI must be made aware of the details of all modifications in order for them to be adequately covered. Please note that AAMI do have restrictions on the number and types of modification fitted to vehicles insured with AAMI. For drivers over the age of 25, AAMI would allow only 3 performance or cosmetic modifications to be fitted to the vehicle. If you vehicle is lowered, then there would be a restriction that no drivers under the age of 25 would be insured to drive the vehicle. AAMI do not allow some modifications, that is why it is important to advise AAMI of all modifications planning to be made to the vehicle, so that we can advise you of your cover accordingly. If AAMI can be of further assistance, please email us at anytime.

Yours Sincerely,
Z
AAMI eBusiness

Thanks again Z. I listed the proposed changes/modifications in an earlier email and have reproduced it below for your review and comment. "Regarding vehicle modifications. I propose: fitment of a roof-rack (as distinct from roof bars); improving the suspension for towing/load carrying with after-market suspension (this will probably result in an increase in the vehicle height of less than 50 mm when unloaded and zero/nil change when loaded); replacing the inadequate standard tyres with All Terrain type tyres (this will require an engineers certificate to meet ADR requirements (would you require a copy?); replacing the plastic under-body front protection plate with a stronger (better protection) alloy plate; fitting appropriate recovery hooks/points to the front of the vehicle (to facilitate safer recovery, should it ever be necessary) and, last but not least, fitting some decent driving lights (to make night-time driving safer)."

Regards
Rohan

Dear Rohan,
thank you for your reply. To ensure that you will be adequately covered with the modifications to your vehicle please reply to this email with your current AAMI policy number, registration number and mailing address as it currently appears on your policy.

Regards,
L
AAMI eBusiness

L, please note that most of the modification mentioned below are proposed and not yet performed. Please advise if any are not acceptable under the policy. Details are xxxxx

Regards
Rohan

Dear Rohan,
thank you for your email. AAMI allow for 3 modifications on a vehicle for customers over 25 years of age. Of the list that you have provided, the only modification would be the suspension. All the others are classed as accessories and would be covered on the policy. If you have further questions, please email us at anytime.

Regards,
J
AAMI eBusiness
Talk is cheap ...
Rohan (Sydney)