Case Studies

The following case summaries highlight common issues and consumer tips. Cases can be filtered by subject below and names have been changed to protect confidentiality. Access to the full case study database is available for IFSO Scheme Participants in the Participant Area.

Showing all Vehicle Insurance case studies

Show all cases

Flood damaged car not fully covered

In this case, the insurer should have clearly notified its customer of the unusual reduction in the agreed value of his car.
Vehicle Insurance Agreed Value

See the case summary

Payout brings more pain

Cover confusion causes more pain for severely injured man

In a recent complaint to the IFSO Scheme, Sai* was seriously injured in a car accident, and suffered...
Vehicle Insurance Agreed Value Sum Insured

See the case summary

Complaint insurer misunderstood the term “off-roading”

A man complained his insurer had an incorrect understanding of the term “off-roading”.

He told the IFSO Scheme his claim was declined after his 4-wheel drive stopped in the middle of a river.
Vehicle Insurance

See the case summary

Son crashes car, no cover

Check your policy for exclusions. Insurers must act with reasonable care and skill.

Cora's car insurance claim was declined because her son was excluded as a driver. But Cora said he was covered.
Vehicle Insurance

See the case summary

Stolen car, no cover

Disclose past criminal convictions when you apply for insurance.

Tim's claim, for his stolen car, was declined because he hadn’t mentioned his criminal convictions. Tim said he wasn’t asked.
Vehicle Insurance

See the case summary

The van, the can and the boom

Don’t tell tall tales – your claim will be checked.

Jean Paul claimed his van caught fire because a petrol can was knocked over during “sort of a romantic meeting”.
Vehicle Insurance False Statements

See the case summary

A car bumped into me - no it didn’t

False statements can’t be retracted, and all policy holders are implicated.

Mr Green tried to withdraw a claim as he had told a “bit of a lie”. But it was too late.
Vehicle Insurance False Statements

See the case summary

Teenage son flips parents’ car

It’s unlikely you’ll have cover if an accident occurs when you’re in breach of licence.

Simon, on a restricted licence, flipped his parents’ car while his sister was in the passenger seat.
Vehicle Insurance

See the case summary

No cover for learner driver with passengers

Don’t expect to be covered if an accident occurs when you’re in breach of licence.

When Karl, with a learner driver’s licence, crashed on the Rimutaka ranges, he had 3 passengers. His claim was declined.
Vehicle Insurance

See the case summary

No tyre tread, no cover

Check your car is roadworthy, including the tyre tread, even if it has a warrant.

Jeremy wrote off his car in wet weather. His claim was declined because of a "smooth tyre".
Vehicle Insurance

See the case summary

Paying excess when it’s not your fault

You will have to pay an excess, even if you're not at fault. Some policies have limited exceptions.

Mia’s car was stolen and then found, but damaged. She wanted the excess to be refunded as she wasn’t at fault.
Vehicle Insurance

See the case summary

Car written-off, pay out less than expected

Check your policy for how much you will be paid out if your car is a write-off. It may be less than you expect.

Katie thought she would get $10,500 for her written-off car, but the insurer offered the market value of $7,500.
Vehicle Insurance Sum Insured

See the case summary