Oof... Australia - Ins. Co. voids policy payout after son wrecks Dad’s S550

Echo4papa

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Your insurance policy doesn't cover you for anything under the sun. In this case, the son wasn't legally permitted to drive the vehicle, so the policy didn't cover him.
 


Echo4papa

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No, it means if you willingly hand the keys to someone who isn't authorized to drive the car and they crash it, you bought it.
Typically, your insurance follows the car. There are exceptions, of course, but as a general rule, if you insure your car and let a friend drive it, your insurance is considered primary if they get into an accident.

You did say "isn't authorized" though, which would be one of those exceptions. Usually you don't have to authorize particular people, but it seems Australia has particular laws about license types and vehicle restrictions that were not followed in this case.
 

Echo4papa

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20 year old with a learner's permit...
The story said probationary, but I think they meant provisional. I think you get your learner's permit first, then your provisional, and after 3 years with a provisional license, you can apply to get a standard license, but don't quote me on that.
 

Mr.MacKenzie

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A lot of vehicle owners in NZ and Australia have policies that give a cheaper premium if you only allow specific named drivers to use the vehicle (except for mechanics/valet/dial-a-driver services etc), or exclude drivers under the age of 25.

I assume that is what has happened here.
 

ORRadtech

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I don't know anything about non US auto insurance or their particular policy but if the kid took it for a joy ride without the parents knowledge or consent isn't that the same as stealing it? What if it had been a random friend of the family or a niece/nephew? Without knowledge or consent seems like theft to me no matter if it is a son. Also, the "kid" is 20, isn't the age of majority 18 there. Which seems to me would make him legally responsible for his own actions. What would have happened had he taken someone else's car?
Of course the parents probably would have to press charges so he'll probably get away with minimal consequences is high.
 

Echo4papa

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I don't know anything about non US auto insurance or their particular policy but if the kid took it for a joy ride without the parents knowledge or consent isn't that the same as stealing it? What if it had been a random friend of the family or a niece/nephew? Without knowledge or consent seems like theft to me no matter if it is a son. Also, the "kid" is 20, isn't the age of majority 18 there. Which seems to me would make him legally responsible for his own actions. What would have happened had he taken someone else's car?
Of course the parents probably would have to press charges so he'll probably get away with minimal consequences is high.
Just taking a guess, because I don't have any experience in the Australian insurance industry, but basing off what I know here in the US...

It's a little murky, but generally, if the car was taken by someone you know (friend, family member etc.) it's considered taken without permission, not stolen. If you try to claim it through insurance as stolen you have to prove it was stolen, not taken without permission. Good luck on that one, unless you reported it stolen to the police prior to the accident.

Also, if a car is taken without permission, and the person who took your car is also insured then their insurance should become primary and yours secondary in the event of an accident. If they don't have insurance, then yours is still primary.
 

friedmud

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Typically, your insurance follows the car. There are exceptions, of course, but as a general rule, if you insure your car and let a friend drive it, your insurance is considered primary if they get into an accident.

You did say "isn't authorized" though, which would be one of those exceptions. Usually you don't have to authorize particular people, but it seems Australia has particular laws about license types and vehicle restrictions that were not followed in this case.
I agree. I had a GF that wrecked one of my cars once... my insurance covered it without issue (the _car_ is insured - not the driver).

The only exception to this is if a person who is not on the policy is driving the car a LOT (like, daily). In that case the insurance company can argue that they should have been on the policy. My insurance had some questions for me about how much my GF used my car...

There is some grey area there...
 

blind*guardian

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In CA it’s pretty standard that unless other members of your houses are not specifically added to the policy, then the default is that they’re excluded. However, if a friend borrows your car then it’ll all be covered.
 

xSouthSyde

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P Platers aren’t allowed to drive high powered cars eg V8’s or turbocharged cars in Australia.
It was illegal for the son to drive that vehicle on the licence he had that is why the insurance company had a “way out”
 

vanquishvzla

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well... apparently a few people here don't know how an insurance company operates...

a normal policy will have primary drivers and authorize drivers... when you buy a car, and have to finance it for example, all the people in the loan, must be included on the policy, as primary or authorized drivers... why? because if something happens, insurance will cover it (normal stuff)... but if you let any unauthorized person (under the policy) to drive your car and they crash, insurance can deny payment and they probably will... policies will cover what you pay, not everything... i live in florida, i don't have protection against hail damage... guess what is gonna happen if a hail storm damage my car? I'm fucked...

so, not "overseas", but locally and probably anywhere in the world... if somebody that it is not you or your authorized driver, destroys your car and it is not a stolen car situation, yes, insurance can reject the claim without any problem... so you need to know what your policy covers and what not...
 

 
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