Duty of disclosure: What do you need to tell your car insurance provider?

Insurance is all about risk. When taking out car insurance, your risk as a customer is assessed based on factors including the kind of car you drive, your driving record, insurance claims history, and a number of statistical demographic details.
While every provider may have slightly different requirements for what you need to tell them, it’s this disclosure of information which enables policy conditions and premiums to be set.
When you sign an insurance contract or renew it, you’re giving your word in a legal sense that the details you’ve provided are true and accurate. When you make an insurance claim, the provider will go through this information to ensure you’ve met your duty of disclosure, and thus the conditions of the original agreement, before deciding whether or not to accept the claim.
But according to consumer advocacy group Financial Rights Legal Centre, this is a flawed system. In their October 2021 report, the group argues that governments and the insurance industry should work together to automate insurance disclosures when it comes to a person’s driving and insurance claims records.
They say this is necessary as many people may not understand questions asked or conditions outlined in insurance documents, and may inadvertently supply incorrect information which can result in rejected claims. The same goes for simply forgetting or misplacing records on key details.
The Financial Rights’ analysis found car insurance claims were the most common disputes regarding non-disclosure addressed by the Australian Financial Complaints Authority (AFCA), with three-quarters involving non-disclosure of driving, criminal or insurance history.
Of the cases ruled on by AFCA, around 80% were in favour of the insurance providers.
A recent Royal Commission recommendation to replace ‘disclosure’ with a requirement to take ‘reasonable care not to misrepresent’ has been implemented by the government to address these issues.
However, the Financial Rights Legal Centre says this still allows for errors, and that automated data pre-filling would be a better solution. The report notes similar systems already exist, pointing to companies accessing driver demerit point information via the Service NSW online portal when issuing Compulsory Third Party (CTP) car insurance in NSW.
Through an external survey, the group found the majority of Australians would be comfortable sharing their driving records (71%) and insurance history (73%) via an automated data system.
Why are some car insurance claims rejected?
As outlined above, some insurance claims may be rejected because you misrepresented yourself as a driver when purchasing or renewing a policy, with this voiding your cover.
Other car insurance claims may be denied because the event that caused the damages you're claiming for isn’t listed as ‘insurable’ on your policy. Similarly, your claim could be refused if you were engaged in other activity that voids your cover during an incident.
This can include a range of specific events and actions, from driving while under the influence of alcohol or drugs to letting another driver behind the wheel if they are in a category specifically not covered by your insurance (such as a young driver or L-plater). For a reminder on the basics, here are a few things commonly not covered by comprehensive car insurance.
What can I do if my car insurance claim is refused?
If your car insurance claim is rejected, start by contacting your insurance company’s complaints or internal dispute resolution department. If you can resolve the issues that led to your claim being refused internally, this may save you time and hassle.
If this route doesn’t get you anywhere and you still believe you’re entitled to an insurance payout, you can lodge the complaint with AFCA. This is a free and independent service that results in a binding determination, meaning your insurance company will have to abide by the AFCA’s ruling and pay the claim if it’s deemed valid.
If this avenue also doesn’t result in the verdict you’re after, you can take your insurance company to court over the claim. Just bear in mind this will come with legal costs, so may only be worth considering for considerably larger claims worth the money and effort.
If you aren’t happy with how your insurance company handled your claim or other policy details, you may want to consider switching car insurance. Start by comparing features of the comprehensive car insurance options below.
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Gold Comprehensive Car Insurance
- Monthly premiums
- Yes Costs Extra
- Choice of repairer
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- Choice of excess
- $500 - $1,850
- Agreed or market value
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- Online Discount Up To 15%
Gold Comprehensive Car Insurance
Get award winning Car Insurance. Save 15% ^ on your first year’s premium when you purchase a new policy online. Budget Direct offers tailor-made cover, new-for-old replacement, 24/7 claims, a highly-rated claims service, and get a hire car following a theft.
- New car if written off
- Yes - within 2 years or 40,000 kilometres of original registration, whichever comes first
- Rental car after theft
- Yes - Up to 14 days, max $1,000 total.
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- Not at fault - Yes. At fault - Optional Extra. Up to 14 days for at fault accidents.
- Windscreen cover
- Yes - standard excess. Option to reduce windscreen excess to $40 on every windscreen claim for an additional premium.
- Modifications
- Covered only if agreed in writing.
- Young driver excess imposed
- $600 for drivers under 21, $500 for drivers under 24, $600 for unlisted drivers, $500 for inexperienced drivers over 24.
- Roadside assistance
- Optional Extra
- Other benefits
- -
- Other restrictions
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Terms, conditions, exclusions, limits and sub-limits may apply to any of the insurance products shown on the Mozo website. These terms, conditions, exclusions, limits and sub-limits could affect the level of benefits and cover available under any of the insurance products shown on the Mozo website. Please refer to the relevant Product Disclosure Statement and the Target Market Determination on the provider's website for further information before making any decisions about an insurance product.
Read our Mozo Review to learn more about Budget Direct Gold Comprehensive Car Insurance
Comprehensive Car Insurance
- Monthly premiums
- Yes
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- No
- Choice of excess
- $500 - $5,000
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- Pay As You Drive Cover With Pricing Tiers Available For Limited Kms.
- Get Free Roadside Assistance For 12 Months When You Sign Up By 30 June. T&Cs Apply.
Comprehensive Car Insurance
Enjoy flexible car insurance with ahm. Whether you’re driving thousands of kms, or just a few, ahm has cover that could suit. Set up a policy in just minutes. Enjoy adjustable excess options to suit different budgets. Get 24/7 emergency help when you need it.
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- Yes - within 2 years of original registration
- Rental car after theft
- Yes - Up to 14 days, max $70 per day.
- Rental car after accident
- Optional Extra
- Windscreen cover
- Yes - standard excess. Optional extra for excess-free windscreen cover.
- Modifications
- -
- Young driver excess imposed
- $1,200 for listed drivers under 21, $800 for listed drivers under 24, $2,000 for unlisted drivers under 21, $1,600 for unlisted drivers under 24, $800 for inexperienced drivers over 24, $800 for learner drivers.
- Roadside assistance
- Optional Service
- Other benefits
- -
- Other restrictions
- -
Terms, conditions, exclusions, limits and sub-limits may apply to any of the insurance products shown on the Mozo website. These terms, conditions, exclusions, limits and sub-limits could affect the level of benefits and cover available under any of the insurance products shown on the Mozo website. Please refer to the relevant Product Disclosure Statement and the Target Market Determination on the provider's website for further information before making any decisions about an insurance product.
Read our Mozo Review to learn more about ahm Comprehensive Car Insurance
Comprehensive Car Insurance
- Monthly premiums
- Yes Costs Extra
- Choice of repairer
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- No Claim Discount
Comprehensive Car Insurance
Stella have created a more intuitive experience and offer a product that’s been designed with women in mind; offering premium benefits, and optional extras and rewards for being a safe driver. Stella are backed by QBE. Purchase a new comprehensive car insurance policy from Stella by 31st July 2022 and receive a $100 EGift Card. To redeem enter STELLA100 at checkout. T&Cs apply.
- New car if written off
- Yes - within 3 years and 60,000 km of original registration
- Rental car after theft
- Yes - Up to 14 days.
- Rental car after accident
- Not at fault - yes. At fault - Optional Extra. Up to 14 days.
- Windscreen cover
- Yes - standard excess. Option to reduce windscreen excess to $0 on every windscreen claim for an additional premium.
- Modifications
- Covered only if agreed in writing.
- Young driver excess imposed
- $600 for listed drivers under 25. $1,600 for unlisted drivers under 25
- Roadside assistance
- Optional Extra
- Other benefits
- Receive a $100 eGift card for new Comprehensive Car Insurance policies purchased from Stella by 31st July 2022. To redeem enter STELLA100 at checkout.
- Other restrictions
- -
Terms, conditions, exclusions, limits and sub-limits may apply to any of the insurance products shown on the Mozo website. These terms, conditions, exclusions, limits and sub-limits could affect the level of benefits and cover available under any of the insurance products shown on the Mozo website. Please refer to the relevant Product Disclosure Statement and the Target Market Determination on the provider's website for further information before making any decisions about an insurance product.
Read our Mozo Review to learn more about Stella Comprehensive Car Insurance
Price Saver Comprehensive
- Monthly premiums
- Yes Costs Extra
- Choice of repairer
- Optional Extra
- Choice of excess
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Available discounts
- No Claim Discount
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- New car if written off
- Yes - within 2 years or 40,000 kilometres of original registration, whichever comes first
- Rental car after theft
- Yes - Up to 14 days, max $1,000 total.
- Rental car after accident
- Not at fault - Yes. At fault - Optional Extra, up to 14 days.
- Windscreen cover
- Yes - standard excess. Option to reduce windscreen excess to $40 for an additional premium.
- Modifications
- Covered only if agreed in writing.
- Young driver excess imposed
- $600 for drivers under 21, $500 for drivers aged 21 to 24 inclusive, $600 for unlisted drivers, $500 for inexperienced drivers over 25.
- Roadside assistance
- Optional Extra
- Other benefits
- Receive up to 10,000 Velocity Points when you purchase a new eligible comprehensive Virgin Car Insurance policy by 4 July, 2022.
- Other restrictions
- -
Terms, conditions, exclusions, limits and sub-limits may apply to any of the insurance products shown on the Mozo website. These terms, conditions, exclusions, limits and sub-limits could affect the level of benefits and cover available under any of the insurance products shown on the Mozo website. Please refer to the relevant Product Disclosure Statement and the Target Market Determination on the provider's website for further information before making any decisions about an insurance product.
Read our Mozo Review to learn more about Virgin Money Price Saver Comprehensive
Comprehensive Car Insurance
- Monthly premiums
- Yes Costs Extra
- Choice of repairer
- Optional Extra
- Choice of excess
- $400 - $2,500
- Agreed or market value
- Agreed Or Market
Available discounts
- 20% Discount On Contents Insurance If Youi Car Insurance Also Held
Comprehensive Car Insurance
When change happens to you, like a new or used car, think Youi - a car insurer that’s all about you and where your life’s at right now. Start a quote with Youi today to see what you could save. Mozo People’s Choice Most Recommended Car Insurance award winner in 2021^.
- New car if written off
- Yes - within 2 years and a listed driver is the first registered owner
- Rental car after theft
- Yes - Up to 14 days.
- Rental car after accident
- Not at fault - Yes. At fault - Optional Extra. Up to 14 days.
- Windscreen cover
- Yes - standard excess. Option to reduce windscreen excess for an additional premium.
- Modifications
- Covered only if agreed in writing.
- Young driver excess imposed
- Yes for drivers under 25 years old - amount varies per policy
- Roadside assistance
- Yes
- Other benefits
- -
- Other restrictions
- -
Terms, conditions, exclusions, limits and sub-limits may apply to any of the insurance products shown on the Mozo website. These terms, conditions, exclusions, limits and sub-limits could affect the level of benefits and cover available under any of the insurance products shown on the Mozo website. Please refer to the relevant Product Disclosure Statement and the Target Market Determination on the provider's website for further information before making any decisions about an insurance product.
Read our Mozo Review to learn more about Youi Comprehensive Car Insurance
* Terms, conditions, exclusions, limits and sub-limits may apply to any of the insurance products shown on the Mozo website. These terms, conditions, exclusions, limits and sub-limits could affect the level of benefits and cover available under any of the insurance products shown on the Mozo website. Please refer to the relevant Product Disclosure Statement and the Target Market Determination on the provider's website for further information before making any decisions about an insurance product.
^See information about the Mozo Experts Choice Car Insurance Awards