Car Insurance Shock

Submitted: Thursday, Apr 17, 2008 at 23:19
ThreadID: 56741 Views:2697 Replies:10 FollowUps:15
This Thread has been Archived
Has anyone else had the experience of being dropped by their insurer the moment they were informed the car would be travellling on an extended trip?
Been gearing up for a big trip, did the right thing by phoning up to inform the insurer of a few new additions to the vehicle and BANG, policy cancelled. They didn't want to know me. They reckoned they would not honour any claim if the vehicle was away from its regular location for more than 3 months.
Seriously, why would any insurer take money from a 4WD owner without expecting the car to travel on an extended trip? Maybe I'm being naive but I wonder how many people are paying premiums with little chance of making any claim should an accident occur during a trip away?
By the way, found another insurer within 10 minutes only too happy to cover the car with no restrictions at all!
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Reply By: Member - Max B (QLD) - Thursday, Apr 17, 2008 at 23:27

Thursday, Apr 17, 2008 at 23:27
Well Michael,
Don't keep us in suspense... who are these people we should not give our business to ?
Max
AnswerID: 299107

Follow Up By: Member - Michael M (VIC) - Thursday, Apr 17, 2008 at 23:30

Thursday, Apr 17, 2008 at 23:30
Auto&General Ins
Been searching my policy and can't see any mention of such a clause at all!
New company is Affinity and couldn't have been more helpful.
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FollowupID: 565275

Reply By: geocacher (djcache) - Thursday, Apr 17, 2008 at 23:37

Thursday, Apr 17, 2008 at 23:37
Hmmm. The don't tell them and let them prove how long it took you to get to Alice Springs option springs to mind.

After all you can get to Alice Springs from Vic in 2 days or 2 years depending on your mission.

Dave
AnswerID: 299109

Follow Up By: Member - Michael M (VIC) - Thursday, Apr 17, 2008 at 23:46

Thursday, Apr 17, 2008 at 23:46
Fair enough but it shouldn't come to that should it? Funny thing is the car is about to be used in unusual circumstances as a support vehicle but the conversation didn't even get to that point. The moment they heard it was leaving home, for any purpose, they wanted out!
I now know I wasn't actually covered many times in the past despite paying premiums! Scary thought really!
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FollowupID: 565277

Reply By: Member - Warfer (VIC) - Thursday, Apr 17, 2008 at 23:46

Thursday, Apr 17, 2008 at 23:46
Hiya Michael

Try these guys DGA Insurance
AnswerID: 299111

Follow Up By: Member - Michael M (VIC) - Thursday, Apr 17, 2008 at 23:52

Thursday, Apr 17, 2008 at 23:52
Gday Warfer, got a cover note already but I'll certainly check it out and compare. Thanks mate
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FollowupID: 565278

Follow Up By: Member - Warfer (VIC) - Friday, Apr 18, 2008 at 00:14

Friday, Apr 18, 2008 at 00:14
No Worries Bud

All the best with your trip too !

Cheers

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FollowupID: 565280

Reply By: Member - Phillip S (WA) - Thursday, Apr 17, 2008 at 23:53

Thursday, Apr 17, 2008 at 23:53
Michael....HOUSE insurance have a similar clause....if you are away too long...they consider it .....vacant or something like that and you have to pay extra for the period you are away if it is empty...please check....or no insurance cover
AnswerID: 299113

Follow Up By: Member - Michael M (VIC) - Friday, Apr 18, 2008 at 00:10

Friday, Apr 18, 2008 at 00:10
I appreciate the need to check. Just re read it again and no mention of any clause like it in any sense at all. It concerns me how many others are paying their hard earned for nothing and won't find out until it's too late!
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FollowupID: 565279

Follow Up By: Member - Davoe (Yalgoo) - Friday, Apr 18, 2008 at 03:11

Friday, Apr 18, 2008 at 03:11
If theres no mention of it then they cant not pay out although not telling them might breach some disclosure of change of circumstances etc.
What they can do and i think reserve the right is to cancel and refund any unused premium or refuse to renew. To do either of these i dont think they need a reason
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FollowupID: 565286

Follow Up By: Stephen M (NSW) - Friday, Apr 18, 2008 at 06:21

Friday, Apr 18, 2008 at 06:21
Spot on phillip, I know NRMA has that exact policy, must have some one stay in the house if vacated for 3 months or more. Regards Steve M
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FollowupID: 565288

Follow Up By: Angler - Friday, Apr 18, 2008 at 19:58

Friday, Apr 18, 2008 at 19:58
When we head out I always have my kids visit the house fairly often and I insist they make a phone call to me or someone whilst they are in the house. Telstra can then confirm someone was there at each time the call was made.

Pooley
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FollowupID: 565366

Reply By: Member - Davoe (Yalgoo) - Friday, Apr 18, 2008 at 01:19

Friday, Apr 18, 2008 at 01:19
I got dropped by VACC insurance. I went to insure my 4wd campervan with them and got told we dont insure campervans.
I told them i had my existing campervan insured with them for 5 years. they replied if i had told them it was a campervan they wouldnt have insured them and my insurance was void---------------------------------------------------
I informed them not only were they told it was a campervan but as per their request they had several photos of it showing it obviosly to be a campervan-----------------------------------------------------------------
Pause uh oh um well we will honour any insurance on the existing premium but not renew it
FINE
AnswerID: 299117

Follow Up By: Member - Matt M (ACT) - Friday, Apr 18, 2008 at 13:46

Friday, Apr 18, 2008 at 13:46
Davoe,

It would have been an interesting exercise to ask for your 5 years premiums back (plus interest) as they were charging you for a service that (by their own admission) they weren't providing.

Matt.
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FollowupID: 565315

Reply By: Willem - Friday, Apr 18, 2008 at 08:16

Friday, Apr 18, 2008 at 08:16
Michael

We don't insure our vehicles comprehensively and so we don't have to worry about how an insurance company would treat us.

Balance of 3rd party is good enough and drive carefully

Yes, if you are away from your home(for home insurance purposes) for more than 60 days, then you have to advise insurance companies of your absence. Its no big deal and just ring them to advise when you have returned.

It is a matter of numbers and percentages and in the scheme of life you have to be very unlucky to come unstuck not having comprehensive insurance on your vehicles.

Cheers
AnswerID: 299133

Reply By: Member - joc45 (WA) - Friday, Apr 18, 2008 at 12:48

Friday, Apr 18, 2008 at 12:48
Some time back, when my nephew was at Uni, he was looking for a part-time job doing pizza delivery and rang his insurer to see if his car was covered. He was told it was not, so he gave up on the idea of the delivery job. Next thing, the insurer wrote to him saying his policy was cancelled! His father wrote back to the insurer threatening legal action unless the policy was restored (after all, it's a black mark on your insurance history). After several letters, the policy was restored.
Gerry
AnswerID: 299169

Follow Up By: Truckster (Vic) - Friday, Apr 18, 2008 at 14:22

Friday, Apr 18, 2008 at 14:22
Policy CANCELLED - thats something I didnt think of... this bloke will find it $$$$$ next time when he mentions yes I have had insurance cancelled previously.
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FollowupID: 565318

Follow Up By: Member - joc45 (WA) - Friday, Apr 18, 2008 at 19:08

Friday, Apr 18, 2008 at 19:08
Yep, one of the questions they always ask you when applying for insurance is "have you ever been declined insurance or had an insurance policy cancelled?".
The insurance co. was a well-known one which provides other vehicle services as well. Not good.
In his case, the policy was restored, and his good record was restored, but not before a fight.
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FollowupID: 565355

Reply By: Truckster (Vic) - Friday, Apr 18, 2008 at 14:20

Friday, Apr 18, 2008 at 14:20
Try Affinity Insurance Brokers.

They are the latest one that 4wding Victoria are recommending.

They came to our club meeting the other week. I was VERY impressed - if what they said was true.. the 2 ladies that came out answered EVERY question we had.

They were having issues round 12-18mths ago when they first started out with 4wdin people, but now they are all good.

Honestly if what they said they cover is true at the rates they said, then theres no need for anything else on earth.

They impressed even ME.

YMMV
AnswerID: 299188

Follow Up By: Tony MD - Friday, Apr 18, 2008 at 17:48

Friday, Apr 18, 2008 at 17:48
Hi Truckster.
I have been with Affinity for a couple of years. They had no issue covering my two teenage sons as listed drivers.
The 80 series is insured for an agreed value of $35K plus 1K of camping gear.
I had a claim for $7.5K last year, having backed into a tree. The rear bar, tailgate & door were a write off.
No problems, used my preferred panel beater who was not the cheapest and said that more money was available if the repair turned out more extensive / expensive than originally thought.
As you know, the extent of cover is just what a 4wder requires.
All up - very impressed with the policy & service.
The only negative was that the panel beater tyre blacked the tyres - yuk!
Cheers, Tony.
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FollowupID: 565348

Reply By: ss--ss - Friday, Apr 18, 2008 at 19:31

Friday, Apr 18, 2008 at 19:31
Worst I found was a company called budgetdirect.
They void my insurance because half the exhaust had been previously replaced.. And it wasn't like a sports exhaust or anything just not a factory one
AnswerID: 299207

Follow Up By: Member - Michael M (VIC) - Friday, Apr 18, 2008 at 19:43

Friday, Apr 18, 2008 at 19:43
Ok, I started all this and it seems to have gone full circle. You see I initially identified the insurance company in question as Auto & General. This is true as this is the underwriting insurer. Guess what? The company it was all done through was Budget Direct!
So ss--ss I totally agree with you
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FollowupID: 565361

Follow Up By: ss--ss - Friday, Apr 18, 2008 at 21:26

Friday, Apr 18, 2008 at 21:26
Yep sounded like the same mob when I read the original posting.
Thing is whenever you go for insurance in the next 5 years you'll be asked if you've had insurance cancelled & you have to say yes & explain.
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FollowupID: 565382

Follow Up By: Member - Warfer (VIC) - Friday, Apr 18, 2008 at 22:53

Friday, Apr 18, 2008 at 22:53
Their assholes budget-direct,My sister had someone run up her ass and the other person was uninsured so they had to pay the repairs to her car for now,then said sorry we havnt a suitable policy for you now...No prior incidents either...


Cheers
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FollowupID: 565416

Reply By: Trekkie (Member - WA) - Sunday, Apr 20, 2008 at 01:51

Sunday, Apr 20, 2008 at 01:51
A quick search of the internet provides the following - Just my opinion, but I would prefer to pay maybe a little more and stay with a reputable Australian Insurance company (If there is any such thing as a reputable Insurance Company)


Budget Insurance - Its History
The Budget Group of Companies began operating in the UK in 1992 when Budget Insurance Company Limited was formed to repeat the success founder Douw Steyn had enjoyed with South African based motor insurance company, Auto & General.

AnswerID: 299381

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