An Audi A3 driver has failed in a bid to have her written off car replaced “new for old” because the accident was two months outside a three-year cut off from the day the car was first registered.

The driver also claimed up to $10,000 for costs associated with the accident, including hire cars. But insurer Allianz Australia Insurance Ltd refused to pay any more than $3000, saying it was the maximum under the policy.

The driver went to the Australian Financial Complaints Authority (AFCA), arguing that the $40,583 insurer settlement offered by Allianz was inadequate.

AFCA was told the car was in an accident on April 14, last year, and on April 21 she lodged a claim for the 2019 Audi.

Allianz said the “new for old” option was not available to her, as the car was declared a total loss more than three years after it was first registered on February 27, 2019.

Although the complainant had bought the car in July 2019 for $41,949, a car dealer had registered it as a demonstrator model in February.

The complainant also sought compensation for non-financial loss, saying she had “suffered an unusual degree of stress and inconvenience because of the insurer’s claim handling”.

“Based on the information before AFCA, the insurer’s settlement of the claim fairly represents the pre-accident value of the insured vehicle,” AFCA said.

AFCA ruled that Allianz settled the matter in a “timely manner” and no compensation for non-financial loss was warranted. The settlement represented the pre-accident value of the insured car. The complainant also believed the value was closer to $42,000 to $43,000 rather than the $40,583 ultimately paid out.

“I acknowledge the second-hand market fluctuated during the COVID-19 pandemic. However, the closeness of the settlement value and the purchase price after approximately three years and the car having done more than 40,000km since its last sale, reflects the higher than would be expected market value of the insured vehicle,” AFCA ruled.

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