Allianz has been ordered to pay a policyholder $1000 after it failed to provide a suitably luxurious rental vehicle while the man’s sports car was being repaired.

The complainant lodged a claim for damage to his 2019 Audi S5 Sportback after an accident last July.

The insurer accepted the claim and began repairs, providing the owner with a rented Mitsubishi Eclipse to use in the meantime. 

The claimant complained the rental did not meet the policy requirement for a replacement car of “similar size and type”. He said his vehicle, which was insured for $83,782, was luxurious and Allianz should have provided a similar class of car.  

He also said the insurer incorrectly limited its liability for the rental car.  

Allianz said the policy wording referred to key characteristics of the insured vehicle including whether it was a sedan or SUV, automatic or manual, its engine size and number of doors.  

It added that hire of a luxury car would cost about $150 a day, well above the policy’s $50 allowance.  

In a dispute ruling, the Australian Financial Complaints Authority says the insurer was required to provide a vehicle of “similar features, technology, prestige and performance”, and did not do so.  

“The policy clearly states that the insurer will provide a similar size and type,” the authority’s ombudsman said. “While the insurer’s offer for a sedan meets the policy condition for ‘size’, I am not satisfied that the arranged rental car satisfies the policy condition for ‘type’.

“If the commercial intention of the policy was to only provide a practical rental car regardless of the exact classification of the insured car, it should have unequivocally said so. This is not the case here.

“I am not satisfied the insurer provided a rental car that satisfies the policy’s promise.”  

The claimant argued he had incurred additional rental car costs and the insurer should compensate him $160 a day over the duration of the repairs.  

But AFCA finds no evidence the man paid for a rental car and is not satisfied he suffered further financial loss.  

It accepts the insurer’s actions caused inconvenience, noting the man raised concerns about the issue in the early stages of the claim.  

AFCA acknowledges that Allianz waived the policy’s $2000 excess and agrees it is fair for the insurer to pay an additional $1000 in non-financial loss compensation.  

Click here for the ruling.