In Australia, if you own a car, you can sue for damages from car insurers, the ACCC says.
In other words, if your insurer says your car is covered, you should be able to go to court to collect money from it.
The ACCC’s insurance advice comes after a number of consumer groups said they would be prepared to sue if the government’s car insurance policy was breached, and that people should be allowed to go ahead with their claims.
Consumer advocate and lawyer Richard Goyder said the ACCCs decision would allow people to go before a judge and seek damages if their car insurance was breached.
“It’s just a new way of doing things that’s been introduced, and it’s certainly not a new approach to the law,” Mr Goyde said.
He said consumers had to take their insurance seriously and were unlikely to get the result they wanted.
Mr Goyd said a number car insurance companies, including those who claim to be based in Victoria, New South Wales, Western Australia and Tasmania, were offering customers free car insurance for a year.
“[They’re] not charging a premium for the policy, but they’re not providing the same level of protection as a consumer in Australia,” he said.
“In this case, consumers would be entitled to receive an equivalent amount of coverage if the policy was breach.”
Consumer advocate Richard Gory said consumers should be given more information about the amount of their claims, and when the claim was likely to be successful.
Under the new policy, consumers will only be able claim the value of the coverage they paid for.
And, Mr Gory added, there will be no minimum amount of compensation or amount that they must pay to obtain coverage.
“In a situation where they’re a high-income person, they’re going to be entitled in most cases to an amount in excess of $2,000 per claim,” he told ABC Radio Melbourne’s Sunrise program.
But he said that even if a consumer was able to collect more than they were entitled to, he would still have to pay the full amount of the claim.
Insurance premiums, car repair costs and vehicle registration costs have been raised to $10,000 under the new rules.
For the average person who lives in Sydney, it would be about $2 million, according to the ACCc’s Insurance Guide.
What you need to know about car insurance in Australia The Australian Consumer Law Reform Commission is also considering the new regulations, which will go into effect on April 1, 2019.
If the ACCCA decides to proceed with the case, it will also have to consider what kind of damage a consumer may be entitled under the policy.
It will be up to the tribunal to decide how much damages will be awarded.
A car insurance case is expected to take up to two years.