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

Australian Farmers Confront Rising Insurance Premiums Amid Climate Challenges 22 Mar 2026: Paige Estritori Australian farmers are currently grappling with a significant surge in insurance premiums, with increases ranging from 20% to 40%, depending on the insurer. This escalation is primarily driven by the rising frequency and severity of natural disasters, coupled with a contracting underwriter market and escalating costs of goods and services. - read more

Widespread Rural Crime Exposes NSW Farmers to Repeated Victimisation 22 Mar 2026: Paige Estritori A recent survey conducted by WFI Insurance in collaboration with the University of New England (UNE) Centre for Rural Criminology has unveiled alarming statistics regarding rural crime in New South Wales. The findings indicate that over 90% of NSW farmers have encountered criminal activities on their properties, with approximately 30% reporting being targeted seven or more times. - read more

Elders Insurance Highlights Increased Summer Storm Risks for Farmers 22 Mar 2026: Paige Estritori As the Australian summer approaches, Elders Insurance has issued a cautionary advisory to farmers, emphasising the heightened risk of storm-related damages during this season. Recent data indicates a significant increase in insurance claims due to summer storms, underscoring the need for proactive measures to safeguard agricultural assets. - read more

Government Backs 12 Projects to Boost Heavy Vehicle Safety 22 Mar 2026: Paige Estritori The Australian Government, in collaboration with the National Heavy Vehicle Regulator (NHVR), has announced a $4.2 million investment in 12 industry-led projects designed to improve heavy vehicle safety across the nation. This funding is part of the Heavy Vehicle Safety Initiative (HVSI), which has supported over 181 projects with more than $45 million since its inception in 2016. - read more