This Comprehensive Car Insurance Clause is called “You and Yours”!

While most of us pay our expensive Comprehensive Car Insurance, expecting that if we either hit some-one or something else, our “comprehensive” car insurance covers both our own self and car and whatever it is we collide into, yes?
Not so! The “You and Yours” clause is an Australian Commonwealth Government initiative set up in 1978 and affects all Insurance Companies. That’s right not just some but ALL!

I found out about this clause recently when making a claim on my Comprehensive Motor Insurance Policy!

This clause prohibits you making any claim if you hit vehicles or property that is owned by either yourself, your partner, or any member of your family that is residing with you!!

The fine print on page 45 of my product disclosure booklet states:

“We will not pay:

for loss or damage to property which is owned or controlled by you, or

We will also not pay for your legal liability:

for the death of or bodily injury to:

you, or any person related to you, or any person who usually lives with you, or your employees if the accident that gives rise to the liability arises out of or in the course of their employment.

My insurance company senior consultant advised me that I should have read my product disclosure book. In today’s busy world, how many of us actually read our Policy Disclosure Booklets from cover to cover?

Some reasons given for this clause:

1) Insurance companies had no person to try to recoup their money from.

2) People would purposely smash their cars into other family members cars to make a claim.

I would love to hear your comments!