A tourist was left devastated after being slapped with a $4,000 insurance bill to cover the excess on a stolen hire car.
Tourist Ron Thorburn and his family used a hire car to travel to Kimberley coast in Western Australia on a family trip. However, thieves stole their keys, valuables, and around $1,000 in cash from the safari tent they were sleeping in, leaving the Thorburn family in financial trouble, according to ABC.
The incident highlights many Australians' insurance struggles and a general lack of understanding around what’s covered by insurance and what’s not, according to Consumer Protection WA.
Consumer Protection WA spokesman Tom Chapman said they had received complaints from customers hit with costly insurance bills for car hire incidents, with some lacking policy understanding.
“We have certainly had some inquiries and complaints about the terms of the coverage. People have been a little shocked or surprised by the amount of money they have been required to pay,” Chapman said, as reported by ABC.
He advised car owners and renters to read the product disclosure statements carefully to avoid financial stress.
“There are varying elements to those contracts; it's important people read and understand what each of those are and what the implications may be for them in the event that something does happen,” he continued.
“We're seeing a preference by traders to provide credit vouchers or notes, now they may come with certain terms as well, such as a time frame that they are valid for. What's important is that consumers have a reasonable opportunity to use that remedy.”
