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Despite not being at fault if your vehicle is stolen, some drivers are paying the price when it comes to insurance.
As Australian car owners grapple with protecting their vehicles amid a surge in thefts, some drivers are calling out insurers for increasing policy prices or denying policy coverage to victims altogether.
Posting on the Stolen Cars Melbourne Facebook group, one user claimed their wife’s insurance premium significantly increased after he added himself as a nominated driver – having filed a stolen car claim on a separate policy last year.
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“Anyone else been stung with insurance? Went to change the insurance on my wife’s Mitsubishi Outlander and went through the online screen to add myself as a ‘nominated driver’ on her policy,” they explained.
According to the Facebook user, when the form asked if they’ve made any claims in the last three years, they ticked yes following the theft of their Holden Commodore SSV VF in September 2024.
“[Her] premium goes up by $500+… why is my wife’s car insurance premium increased because MY CAR was stolen, and I occasionally drive hers? When I leave my details off the quote, [it] goes back to ‘normal’ – around $1000 for comprehensive [insurance],” they added.
Their experience isn’t isolated, with various commenters sharing similar experiences with some insurers.
Another Facebook user added, “[My] car got stolen, [I] bought another car [and] went to get insurance and [the insurer] I’m with tried to charge me $7000, so I went with a different insurance company… it was going to cost me an extra $1100 a year if I had my partner on the policy.”
A different commenter said a number of insurers won’t cover them following a second car theft claim.
“Some companies won’t even insure me anymore as I already had an ‘at fault’ claim and seeing as my car getting stolen was my second, being under 25, it screws you. Now I’m paying $3K+ a year to cover my vehicle,” they said.
Why is my insurance going up if my car gets stolen?
If your car is stolen, filing an insurance claim on your vehicle can lead to increased prices, regardless if it’s the policy holder or a nominated driver who submitted the form.
“Our motor vehicle premiums reflect a range of factors, including the likelihood of a claim being made, as well as the anticipated cost of any claim whether that’s for repairs or if the vehicle is written off,” an RACV spokesperson told Drive.
“Other factors we consider when determining a customer’s premium include the age, make and model of the vehicle, and where it’s kept (for example in the street or a locked and secure garage).
“We also factor in the age, driving experience and claims history of the owners and drivers,” they added.
Additionally, some insurers such as Budget Direct can deem “theft, attempted theft or a malicious act” as an at-fault claim that could lead to a higher insurance bill.
Why am I being denied insurance cover if my car gets stolen?
An Insurance Council of Australia spokesperson previously told Drive that insurers are legally allowed “to decline to renew an insurance policy” due to a range of factors.
According to the ICA, these can include a person’s “claim history, for example, where a policyholder may have made multiple claims within a certain timeframe [and] new information, where the insurer may have become aware of new information that changes the policy holder’s risk profile”.
Additionally, if an insurer does refuse to cover you, there’s not much you can do about it. This means consumers have fewer protections and rights when it comes to rising insurance costs.
Chris Liamos, Senior Ombudsman for Insurance at the Australian Financial Complaints Authority (AFCA), said it has “limited jurisdiction to deal with complaints where an insurer refuses to provide insurance coverage”.
“We can only deal with these types of complaints if: the complaint is that the decision was made indiscriminately, maliciously or on the basis of incorrect information, the complaint was misinformed about the insurance cover, or it is a medical indemnity product,” Liamos told Drive.
The post How making a stolen car insurance claim could jack up prices appeared first on Drive.
Based in New York, Stephen Freeman is a Senior Editor at Trending Insurance News. Previously he has worked for Forbes and The Huffington Post. Steven is a graduate of Risk Management at the University of New York.