An man has lost his battle with RACQ for a bigger payout after his 2005 HSV Coupe GTO Z Series caught fire in March last year after the Australian Financial Complaints Authority (AFCA) ruled in the insurer's favour.
RACQ Insurance accepted the vehicle was a total loss and appointed an assessor who calculated its pre-accident market value to be $68,000. An independent car valuer was appointed and found the vehicle had been in “good condition for its age and kilometres travelled” (315,000km).
They said similar vehicles with lower mileage had been advertised for more than $81,000, said that the high kilometres travelled would diminish the car's collectibility. The reviewer said the insurer’s offer was fair.
The owner argued that RACQ Insurance did not adequately assess the vehicle. He said its initial valuation contained an error concerning the vehicle’s engine type and did not consider that the car was one of only 60 models with a manual transmission. He said the car was “in extremely good condition”.
The insurer increased its offer to $78,000 to account for modifications made to the vehicle and its reconditioned engine, but the insured rejected this. AFCA said that RACQ Insurance’s offer was appropriate and the evaluation of the independent valuer was “logical, well-considered and helpful”.
The authority checked online car valuer Glass’s Guide and found the vehicle’s maximum valuation would have been $58,100 based on age, condition and mileage. It acknowledges the model was limited and sought after, but says there is not enough evidence it was worth $200,000.
“The complainant has not provided persuasive information to show his vehicle is worth more than the insurer’s offer. In these circumstances, it would not be fair to require the insurer to pay an increased settlement.”