Motor vehicle cover is one of the most complained about insurance categories.

This is largely because insurers don’t adequately explain what is covered and what is excluded from their policies, according to John Price, lead ombudsman — insurance at the Australian Financial Complaints Authority (AFCA).

In its 18 months or so of operation, AFCA has received about 100,000 complaints about financial products, with insurance accounting for about a quarter of those and motor vehicle policies making up about a quarter of all insurance complaints.

Motor vehicle insurance is typically the most complained about general insurance category, although the spate of recent natural disasters in Australia has pushed housing claims into top spot for 2020.

Price says the high number of motor vehicle insurance complaints relates in part to the high number of policies taken out by consumers, but also to the product not being well understood.

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