Home Parking Dilemma Leads to Insurance Dispute Loss

The insurer, SGUAS, denied the claim based on a clause that excluded coverage for vehicles left on the street between 10pm and 5am. The woman's car was stolen at 2am from directly outside her house, with the thieves gaining access by breaking into her home and taking the keys.

According to a police report, the location of the car would not have deterred the thieves, who broke a window to enter the house. “Regardless of where the car was parked, the offenders would have successfully taken the vehicle," stated the report.

The car owner revealed that she bought her insurance through a broker and relied on him for managing all details. She admitted to frequently parking on the street because of the difficulty in maneuvering her car into the narrow driveway and carport of her new home.

During the investigation, her broker argued to the Australian Financial Complaints Authority (AFCA) that the car would have been stolen regardless of its parking spot. However, AFCA maintained that the insurer was not liable as the homeowner did not inform them of her regular street parking, a critical deviation from the declared parking arrangements.

AFCA's ombudsman expressed sympathy for the homeowner's plight but upheld the policy's exclusion for overnight street parking. "It seems this practice was established due to the inaccessible driveway, yet the policy clearly stipulates the necessity to inform the insurer of any such changes," the ombudsman noted.

"The homeowner consistently parked on the street overnight, thereby invalidating her insurance claim due to the policy's terms. The failure to communicate this change prejudiced the insurer’s ability to assess the risk properly, justifying the claim denial," the AFCA representative explained.

AFCA further noted that street parking significantly increases the risk of theft, a factor emphasized in the insurer’s underwriting guidelines. “Even though the thieves acted boldly, the information provided by the insurer indicates a higher theft risk for cars parked on the road,” it stated.

At the inception of the policy, the homeowner’s broker had conveyed detailed parking arrangements to the insurer, even providing a picture of the carport. Yet, this information became obsolete when the homeowner developed a habit of street parking without updating the insurer.

This case serves as a stark reminder of the crucial role precise adherence to insurance policy terms plays. Policyholders should communicate any changes in their circumstances to ensure their coverage remains valid. For more details, you can refer to the original ruling by AFCA.

Published:Monday, 9th Sep 2024
Source: Paige Estritori

Share this news item:

Insurance News

AIA Australia Introduces Enhancements to Priority Protection Life Insurance 28 Feb 2026: Paige Estritori AIA Australia has announced significant updates to its Priority Protection life insurance suite, effective from 9 November 2025. These enhancements are designed to simplify discounts, improve policy clarity, and support premium affordability for policyholders. - read more

Decline in Life and Income Protection Insurance Premiums Benefits Australians 28 Feb 2026: Paige Estritori Recent data indicates a notable decline in life and income protection insurance premiums across Australia, providing consumers with more affordable coverage options. According to the latest Direct Life Insurance Report from Rainmaker Information, direct life premiums have decreased by 7% since 2024. Similarly, direct income protection premiums have seen significant reductions, with average premiums for waiting periods of 30 days and 90 days decreasing by 12% and 13%, respectively. - read more

Club Marine Launches Land-Based Insurance for Race Boats 28 Feb 2026: Paige Estritori Club Marine, Australia's leading boat insurance provider, has expanded its offerings to include land-based insurance coverage for race boats. This initiative is designed to support participants in the Australian Offshore Superboat Championship (AOPC) by providing protection for their vessels while on land. - read more

Pantaenius Australia Offers New 90-Day Lift Cover for Boat Maintenance 28 Feb 2026: Paige Estritori Pantaenius Australia, a specialist in marine insurance, has introduced a 90-day lift cover policy designed to provide boat owners with third-party liability insurance while their vessels are out of the water for maintenance or survey purposes. - read more