Victims of car theft are increasingly finding themselves penalised by insurers, with policy renewals refused or premiums hiked. Criminologists say it highlights systemic practices that punish people already affected by crime.
Alexis (name changed for privacy), a Berwick resident, is one of many caught up in the fallout.
Her partner’s Toyota Prado was stolen from the carpark outside Bunjil Place despite being fully fitted with roof racks, a brand-new awning, fridge, tyres, and camping gear.
He had taken their children to the nearby playground, and as they walked back, they saw the car speeding off, with one of their daughter’s windows smashed on 20 September.
“My kids were understandably very upset and confused, and my husband was just in shock,” she said.
The Prado was a source of pride and comfort for the family, especially amid personal challenges, including a cancer diagnosis in their immediate family.
“Losing our car has brought an incredible amount of stress and heartache that we still feel every single day,” Alexi said.
Mike Ippolito, Head of Marketing and Digital at Club 4×4, which is managing Alexis’ husband’s vehicle, said they accepted and finalised the theft claim within three business days.
“Having a vehicle stolen is highly disruptive, and we take these matters seriously. In this case, the theft was reported to us on 22 September and an investigator was appointed the same day,” he said.
“Club 4×4 has paid the full total loss value of the vehicle and is covering the cost of a hire car to support the family during the process. We are in direct contact with the customer to ensure they have everything they need.”
In a cruel twist, Coles Insurance initially offered to renew Alexis’s policy (the renewal offer was provided exclusively to the Gazette) before she disclosed her partner’s theft claim on the Prado.
But after she was transparent about the incident, her insurer refused, raising concerns about why the offer was made in the first place if the theft was not a determining factor..
“Victims shouldn’t have to feel like criminals or like they’re being punished for bad luck,” she said.
“Behind every claim is a real family already struggling with stress, uncertainty, and loss.
“We pay our premiums in good faith, trusting that we’ll be supported when something goes wrong. Instead, we’re left feeling abandoned and let down at a time when we most need understanding, compassion, and fairness.”
Coles explained the refusal in email:
“When we insure a car, we consider risk factors like the age and make of the car, where it’s usually parked, as well as the driving history and claims history of the people who will be driving it. We then compare this against our acceptance criteria. In this case the claims history of one or more drivers on the policy falls outside of our acceptance criteria, so we’re unable to offer you cover.”
Coles spokesperson further told the Gazette they are unable to discuss the specific details of the customer’s policy due to privacy reasons.
“It is important to note that all insurers retain the discretion not to offer policy renewal when a customer’s circumstances fall outside their acceptable underwriting criteria, which is the case in this instance,” the spokesperson added.
With one car now shared for work, school, and daily errands, the family initially had to hire a car, which was only covered for 21 days.
“To say this whole process has been stressful is an understatement. We still haven’t received the payout for my husband’s car through Club 4×4 which was stolen 6 weeks ago and never recovered,” Alexis said.
“We are out of pocket close to $6k between a loan car, excess, the increase to both new policies, and we’ve had to borrow money to get a new car.”
Many others reported having their insurance refused after a theft, exposing a systemic problem in the industry.
Alexis’ family has adjusted their behaviour due to ongoing safety concerns. They will not take their new car to Fountain Gate and have researched crime statistics in other states, prompting discussions about relocating to a safer area.
To protect their new vehicle, they’ve installed a $1,300 ghost immobiliser, which makes it nearly impossible for thieves to steal. Yet, Alexis pointed out that many insurers do not factor such safety measures into their premiums.
Police investigation remains ongoing and anyone with information or footage is urged to contact Crime Stoppers on 1800 333 000.
