Australasia 2.5 tonne insurance issue with RACV in Victoria Australia

[gigglepot]

It pays to read the fine print.

RACV and many other insurance companies offer a new vehicle replacement if your car is a total write off in the first two years (as does the RACV).
I questioned this and confirmed that even thought the RACV is listing its Market Value at $109k that they would provide a replacement vehicle.
The technical point I questioned was "where possible".
The response (as confirmed via a Manager) was that they would have to do this unless I requested the $$ instead of the car was no longer in production or not available.

Except that this does not apply if the Vehicle is over 2.5 tonnes. In this case they will pay you out.

They do not mention this anywhere except deep within their PDS. At first I was told that it was on page 34 but it was not and it was only when I complained that I was told it is listed on page 10.

I personally think it is false advertising to promote repalcement vehicle in the first two years and then have clause that will leave me ~ $30k short to replace the vehicle myself.

The only solution they offered was to pay the difference.

I am going to lodge it with the insurance ombudsman but wanted to make sure other INEOS owners know about the risk of being underinsured in the event of a total write off.

Does anyone have any recommendations for insuring their INEOS.

 

[Davman]

Nice pick up - I have never heard that, but then again I probably have never read an insurance PDS from start to finish either.

 

[gigglepot]

Copy from the PDS.

 

[Shopkeep]

I wonder what the reasoning is behind the weight exclusion? Seems odd to me, maybe written during the crazy Covid days when Landcruisers were appreciating excessively.

 

[Tazzieman]

What an offensive clause!
Ask the ombudsman to get them on fat shaming.

 

[bigleonski]

"New for old" within the first two years is very very ambiguaous.
With the insurer I'm going with (part of the Suncorp group), they say in the PDS that in the first 2 years they will replace the vehicle with a brand new vehicle within 90 days or pay you out.
Two things there.
One - most vehicles can't be replaced within 6-12 months let alone 3 months. Will they replace new for old if it takes longer than 90 days - they were very ambiguous on that. They may also provide a similar vehicle if yours is not available. So they'll give me what?
Two - if they pay you out because they cannot replace it within 90 days (per the PDS), how much do they pay? The market value they say when queried - of what is my question? Your up to two year old vehicle with 50,000km on it or a new one? This is important as you note the market value on your policy when you sign up (to cover any extras). What if a new vehicle costs has risen by $30,000 as they have done? I asked too many questions, got her confused, and then gave up. A pursuit for another day.

 

[Znarfgh]

Copy from the PDS. View attachment 7833592

Thanks for pointing this out, I insured mine with RACV and did not read the PDS. If you need any support with the Ombudsman let me know.

 

[Shippa]

Copy from the PDS. View attachment 7833592

Hi Gigglepot, I have just had a look through the WA RAC insurance pds and can find no reference to a Tare weight restriction. looks like WA insurers may have dodged that bullet!