A motor insurer was right to reject a claim for a damaged Jaguar being driven by an 18-year-old, because the policyholder had been repeatedly warned that under-25 drivers were excluded, the industry ombudsman found.

The vehicle was insured under a comprehensive policy taken out online and was classified by Allianz South Australia as "high-powered" because it was supercharged. 

The Jaguar XF V6 four-door sedan was involved in a collision while being driven by the policyholder’s 18-year-old friend, who was taking him home because he was "unwell". Allianz declined the resulting claim, given the driver’s age. The driver had turned right and collided with oncoming traffic and was deemed to be at fault.

The policyholder argued he had not been properly informed of the exclusion during the online application process and said the policy should not have been offered to him because he was himself aged 23 when it was taken out. 

The Australian Financial Complaints Authority rejected the complaint, finding the exclusion was clearly communicated during the online application.  

It also found that the policyholder initially entered his own details and date of birth but subsequently changed information when the online system blocked him going any further. 

After finding he could not obtain an online quote because he was under 25 and had a high-powered vehicle, he changed his own classification from "frequent driver" to someone who “never drives” the vehicle. 

He also initially nominated a friend, aged 31, as the main driver and policyholder before then changing the driver's details. 

AFCA said the policyholder had been warned “on several occasions” about the under-25 exclusion and found the inaccurate information provided during the application had induced Allianz to issue the policy. 

AFCA also rejected the man’s complaint that the policy was "not suitable or useful" to him because he was under 25, unable to claim and so should never have been allowed to buy it. 

It found the cover still provided a benefit because he had declared that he never drove the vehicle and it provided cover when the vehicle was driven by people aged 25 or older. 

AFCA concluded Allianz was entitled to deny the claim and was not required to take any further action. 

Click here for the full ruling.