2 words of warning regarding motor vehicle claims

On one of the television channels special report shows they had a segment last week criticising the insurance industry, including a broker, over damage to a vehicle that had been insured for only third party property damage.

This form of cover is risky in itself as there is no cover for damage to the vehicle when the driver themselves is at fault and/or if it is damaged whilst parked and the person that hit the vehicle does not leave an honest note. Further, there is no cover for weather perils or if the car catches fire or is stolen.

Having said this there are fire, theft and third party property damage covers available, but they are still not as good as comprehensive.

I do not know the circumstances of the matter and cannot comment as to why the other vehicles insurer is not coming to the party. There may be an exclusion such as drink driving, unregistered vehicle, or the vehicle may have been un-roadworthy. it is possible that the insurance may have expired. These are all risks you take when you do not have full comprehensive insurance.

In addition, to remind people of this issue I also want to again warn that there are a lot of unscrupulous firms preying on unsuspecting people. They typically focus on people in the lower socioeconomic community. This group of course can least afford to be caught up in the scam financially and often do not have the training or experience to know how to fight the fraud.

What we have seen is such a person, end up with a repair bill of say $10,000, plus a hire car bill of over $25,000, kindly provided by the scammer, when the damaged car has a net value after salvage of say $5,000.

This is becoming a major problem in Australia, along with staged accidents and dodgy repairs. It was great to see arrests reported a little while back on fake injury claims and I know the insurance industry is throwing a lot of resources on building the case against many others as well.

The sooner the better as it sickens that any one is caught by scammers but particularly those who are already victims and can least afford it.

Any journalists out there please be careful of the companies you inadvertently promote in your programs and please go back after a few months and ensure that the whole thing has had a good ending for the innocent party.



One response to “2 words of warning regarding motor vehicle claims”

  1. Neil Tyler says:

    Well said Allan!

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