The owner of a 1990 Nissan Skyline will have his theft claim covered by IAG after a dispute ruling determined that he did not mislead the insurer about where he kept his vehicle.

The insurer said the complainant misrepresented the conditions of his risk by not keeping his car in a garage, as required by the vintage vehicle policy.

But the complainant said he stored the car in the garage and only parked it on the driveway for short periods for cleaning and servicing requirements.

An Australian Financial Complaints Authority (AFCA) ruling sided with the complainant, saying that the insurer did not have sufficient evidence to prove that the motorist was dishonest about where the car was usually kept.

The complainant purchased his policy in April 2017, and confirmed over the phone that his car was kept in a garage.

IAG said that the owner failed to uphold this requirement, saying that the car spent a proportionate amount of time parked in the driveway or on the nature strip.

It said if it had been aware that the automobile was parked in the alleged areas, it would not have offered the policy.

The insurer showed evidence of a vehicle that matched the description of the owner's Nissan Skyline parked in the driveway and on the nature strip on select dates and times.

IAG also submitted accounts from neighbours of the complainant, who said they regularly saw the car parked in the claimed areas. However, they later said the insurer’s representative misunderstood their answers.

AFCA noted a distinction between the initial policy, which required the owner to keep the car in the garage, and the renewal, which asked for the vehicle to “usually” be stored in the garage.

It said the evidence presented by the insurer does not contradict the complainant's stance that, on most occasions, the car was kept in the garage.

The determination told IAG to cover the owner for the event. It allows the insurer to deduct premium costs if the claim is cash-settled but requires it to pay interest.

Click here to read the full ruling.