When am I not covered – Issue 3

One of the things we get asked all the time at Club meets, shows, on the phone and online is, “What am I not covered for?” Over the next few weeks, we will be compiling a series of short articles to help you understand a bit more about the exclusions in your PDS.

Please be aware, these articles focus on the major issues and should not be viewed as a substitute for appropriately looking through your PDS before deciding to take up coverage with Club 4X4.

This time around we will focus on non-compliance to the terms and conditions of the policy. What we discuss in this article can be referenced back to page 18 and 19 of our PDS.


Here are a few of the important points:

  • Vehicle Usage – When you get a quote with us, one of the questions that we ask is how you plan to use your vehicle or van. The options available are Business or Private use and each will have a slightly different risk rating and premium. Why are they different you ask? Well, the answer isn’t simple, but in general a vehicle being used for business sees more road use and at times will not have a defined driver, unlike private insurance customers. Both of these factors contribute to a higher risk. So make sure you answer correctly and as always, if your circumstances change, let us know.
  • Business Usages – When you declare that your vehicle is being used for business, it’s important to understand that there are certain business uses that aren’t covered. For example, if you’re hiring your rig or van out for rewards, you won’t be covered. There are certain insurers out there that will cover your van or camper trailer or even your vehicle for hire. This is pertinent as the concept of peer-to-peer business grows nationally. We are focused in our intent; we are here for the enthusiast and the enthusiast only. Other usages that are not covered are delivery type vehicles, couriers and the like. Where you have any doubt, please give us a call to discuss how you use your rig – it pays to be sure.
  • Duty of Disclosure – This is a very important piece that we have written a blog about in the past. All motor insurers (and general insurers in fact) in Australia operate under the Duty of Disclosure, a document that outlines what an insurance provider expects of you. The Duty of Disclosure is an extension of the Insurance Contracts Act 1984. The core of this requires anyone applying for insurance to disclose to the insurer every matter they know or could reasonably be expected to know to be relevant to the insurer’s decision to accept their application for insurance. In layman’s terms, read or listen and understand the questions you are being asked when being quoted and please, answer them accurately. Being a specialist insurer, we have more questions than normal and every single one of them may be a determining factor around whether we choose to accept your risk and offer you insurance. Remember, if it’s found that the information you provided when we decided to accept your risk and offer you a policy was not complete and correct, you will have issues lodging a claim. If it’s found that we would have offered you coverage at a higher price, we may charge you the extra premium before accepting your claim. If however as a result of your information we wouldn’t have offered you insurance in the first place, you will not be covered for your claim.
  • Racing and Time Trials – Just typing that was amusing, although I’m sure not everyone reading this is blessed (Ha!) with a ZD backed by a slushbox! Like the overwhelming majority of Motor Insurers in the Australian market, you will not be covered whilst participating any form of motorsport, including Rallies, Speed Trials (still laughing) or other types of timed contests.
  • Keeping it legal – The final exclusion in this area relates to using your vehicle for illegal purposes. This can include various scenarios, but in general using the vehicle in the process of committing a criminal act is the most relevant when reading this exclusion.


So there you have it – please feel free to ask questions or make comments below!


Click here to read previous issue

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Comments 15

  1. Hi, how does things like certain after market modifications and accessories that have not been certified and mod plated affect insurance policies and claims etc?

    As examples – extended shackles, body lifts, larger tyres, different front seats than origina etc?

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  2. Hi 4 x 4 . My Wildtrak is insured with you under business insurance . What if one day I decide to pack up the family and tow a caravan around Australia for a year ?? Would I be 100% covered even though the Wildtrak for that travelling year is not being used for a business purpose but family trip (so personal trip not business ) ??

    1. Post

      Hi Todd,

      With that change is circumstances yes you will be fine. But if you were doing the reverse, ie going from personal to business then you’d need to let us know.


  3. Hey guys. This series is excellent!
    Just chatting this morning with Peter who put me on to 4×4 and observing “what other insurance company has taken the time to outline the areas ‘not covered'”

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  4. I use my ute in my bricklaying business carrying tools and equipment to site as well as private use, how would this usage be classed? Cheers

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  5. why do I have to put in a start date for the quote when I am only enquiring to the cost of insuring my vehicle

    1. Post

      Hi Wayne,

      Good question – this just helps in case you want to start it later on. It’s fine to put a dummy date if you are only quoting.


  6. Hi Kalen..
    I read with interest a comment on premiums valuations.
    I understood from that coment that eg you would value a bullbar (and any other accessory )at market value and charge premium accordingly , but in the event of a claim you would
    Deprecate its value at its current age. Does that infer that every policy birthday i should devalue and pay a lesser premium.

    Great forum. From my next insurer.

    1. Post

      Hi Joseph,

      Thanks for making contact.

      Your accessory/modification value is provided by you to us during the quote process. Sometimes we will ask you to provide us with photos and a list to substantiate the value you have suggested. In the process of assessing the photos at this quote stage, we may depreciate the overall value. Now, if you were to lose the whole vehicle, to something like theft or fire, or it was deemed a total loss as a result of an accident, we would ask you to provide us with some sort of proof of ownership. Obviously items that are openly visible in photos at the quote stage (if we asked for them) are easily determined. But items that cannot be seen as readily we ask for receipts, photos, manuals, warranty document, anything to help substantiate them being on the vehicle.

      We don’t depreciate the values of accessories or modifications at claims time no, but as stated above, we’d need to substantiate somehow that the part was actually in your possession as per your disclosure to us at the beginning of the policy.

      Res assured, we will always suggest different ways to substantiate rather than simply remove value. To give you an example, recently we talked a customer through his diff lockers and he realised he’d bought them from a particular retailer – he was able to go there and have them dig up the receipt from 2 years prior! In another case, a customer had built custom drawers himself – we talked through the specification of the build and agreed to a value of worth.

      Hoping that answers your question

  7. Hi there,
    I have a Nissan D22 4 door 4×4 str. It was 18 months old when i bought it (YOM 2013). I was insured with the RAC with a previous vehicle but when asked for a policy, the RAC would insure me as the safety rating did not meet their standard. Why is this so when the vehicle was a fairly new vehicle?

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      Hi Andy

      That’s quite bizarre and not something we have ever heard before.

      I wonder what they do with other vehicles of the same vintage and of the same crash ratings ect?

      Again, bizarre!

  8. Pingback: When am I not covered – Issue 4 - CLUB 4X4

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