Queensland's largest car insurer, Royal Automobile Club of Queensland (RACQ), has settled over 80% of its motor claims two months after the devastating storm and flooding in the region.
As of May 2022, RACQ had paid out nearly $36 million to its members for motor claims related to the catastrophic flooding in the region in February and March 2022, with a majority of the 2,654 car insurance claims received so far already finalised through total loss cash settlements.
“We're processing claims as quickly as possible to help members get back on the road following one of the largest flooding events in Australia's history,” said Trent Sayers, general manager of claims at RACQ. “We're also glad to hear RACQ flood-affected car owners have been taking advantage of our agreement with dealerships including Eagers, Autopact, and Motorama, who are helping our members find a replacement vehicle.”
RACQ has also completed 67% of home assessments for flood-affected properties, with the assessors prioritising vulnerable members in the community and builders continuing to process scopes of works and proceeding with repairs.
“We bolstered the number of builders on our panel before the summer storm season. However, the sheer volume of claims, as well as the significant strain on labour and materials prior to this event, means it is going to take longer than usual for repairs to be completed,” Sayers said. “The building boom and the COVID pandemic have contributed to driving up demand for trades and materials, and this extends wait times and increases costs. Overall, construction material costs have risen around 20% in the past two years, with steel prices jumping 60% since 2020.”
Early this month, the Insurance Council of Australia (ICA) revealed that the catastrophic flooding in southeast Queensland and coastal New South Wales (NSW) in February and March 2022 was the costliest flood ever to hit Australia. As both states recover from the extreme weather event, RACQ has warned homeowners and motorists about significant rain event tracking across Queensland.
