An insurer has been told to pay almost $28,000 to a car owner after failing to prove her repairer’s quote was excessive.

The Allianz policy included a choice-of-repairer benefit, allowing the woman to nominate her own mechanic, subject to the insurer obtaining a second quote to check the cost was reasonable.

Allianz argued the policyholder’s $25,374 quote, following a crash with a trailer, included unnecessary repairs and excessive labour allowances.

It offered $9000 to settle the claim, saying two alternative assessments supported the lower sum.

But the motorist argued the insurer’s assessments were incomplete and not directly comparable with her repairer’s quote.

Neither of the insurer’s repairers physically inspected the vehicle, instead relying on photographs taken by her mechanic.

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In a dispute ruling, the Australian Financial Complaints Authority finds Allianz did not sufficiently explain why some repair items, labour allowances or methods should be excluded or reduced.

An AFCA member said: “I am satisfied [the car owner’s] quote is the most reliable assessment available of the reasonable repair cost. [The repairer] physically inspected the vehicle and prepared an itemised quote based on the damage observed.”

The authority says Allianz provided only limited information explaining the difference between its estimates and the owner’s quote.

“Further, I am not satisfied the insurer has shown the alternative quotes were actionable. The assessor adjusted the quotes based on their view of the necessary repairs, but the assessor could not carry out the work.”

AFCA has ordered Allianz to pay $25,374 plus a 10% contingency, taking the payout to $27,911.

See the ruling here.

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