Introducing a new Shannons Motor Insurance Product Disclosure Statement (PDS) for policies renewing on or after 23 March 2021. The PDS is an important legal document that contains details of the product you purchase so you need to read it carefully.

The purpose of this page is to advise you of some changes that we have made to our Motor Insurance PDS.

We've changed the layout of the PDS to help make it easier to understand. We have also updated some of the wording to make it clearer and we have added and changed some covers, options, conditions and exclusions. Information on this page applies if you are renewing your Motor insurance policy and your current policy commenced between 23 March 2020 and 14 May 2020 OR if you renewed your current policy prior to 15 June 2020.

For full details, please refer to your PDS.

Download Motor Insurance PDS

General Information

New section - Extra support

Sometimes your circumstances might mean you need additional support or assistance in dealing with us. This could be due to your physical or mental health, family or financial situation or cultural background. If you are comfortable, you can tell us about your situation and we will work with you to arrange support.

Joint policyholders

During the period of insurance, we might ask all joint policyholders first before we action a request or direction in relation to your policy (e.g. before we cancel your policy, reduce your cover or remove another policyholder). This way we can help protect the interests of all policyholders.

New section - Conduct of others

When we consider a claim, we will have regard to any prejudice suffered by you due to the conduct of others and we may meet the claim when we are not legally required to do so.

New section - Your responsibilities

'Conditions applicable to your policy' is now known as 'Your responsibilities'. We have changed the responsibility for you to take 'all reasonable steps to protect your vehicle from loss, theft and damage' with the responsibility to 'take steps to prevent loss or damage'. We have also included some examples of how you can take steps to keep your vehicle in 'good, safe and roadworthy condition', such as fixing electrical and mechanical problems.

New section - When you need to contact us

Situations when you must contact Shannons have been included in the PDS. For example, you must tell us as soon as possible if:

  • you or any person who is likely to drive your vehicle has their driver licence cancelled, suspended, disqualified or restricted;
  • you or any person who is likely to drive your vehicle has been charged with or convicted of a criminal act or offence;
  • you have had another insurer cancel or decline an insurance policy, impose specific conditions on a policy or refuse a claim;
  • you have added accessories or modifications to your vehicle;
  • the listed drivers/riders of your vehicle change;
  • the type of vehicle usage or frequency of vehicle use changes.

Things We Don't Cover

'Exclusions applicable to your policy' is now called 'Things we don't cover'. 'Things we don't cover' has been updated, with both new exclusions to be aware of as well as changes to existing exclusions.

New - Asbestos

A new exclusion has been added for asbestos. This includes damage, loss, cost or legal liability that is caused by or arises from or involves: asbestos, asbestos fibres or derivatives of asbestos of any kind.

Biological, chemical, other pollutant or contaminant

This exclusion encompasses the use, existence or release of any biological, bacterial, viral, germ, chemical or poisonous substance, pollutant or contaminant.

Defensive driving courses

This additional cover does not apply to vehicles with Laid up cover.

Extra costs or other losses following an incident covered by your policy

A new exclusion has been added for extra costs or losses (financial and non-financial loss) following an incident covered by your policy. Examples of what is included can be found in the PDS.

New - Intentional or deliberate acts

We do not cover an intentional or deliberate act by:

  • you or a member of your family;
  • a person who shares ownership of your vehicle;
  • a person acting with your encouragement, assistance or express or implied consent;
  • a person authorised by you to operate your vehicle.

New - Unattended vehicle

You are not covered for the theft of your vehicle if the vehicle is left unattended, unlocked and with the keys left in the vehicle.

New - Unlawful purposes

We do not cover your vehicle being used for unlawful purposes (such as a criminal act) by you or for which you gave encouragement, assistance or consent (either expressly or implied).

New - Unlicensed driving/riding

You are not covered when your vehicle is being driven/ridden by, or is in the charge of someone who is not licensed, not correctly licensed or not complying with the conditions of their licence. We will pay a claim for you (but not the driver/rider or person in charge of your vehicle) if you did not give encouragement, assistance or express or implied consent to the unlicensed driving/riding or the incident.

Alcohol, drugs, medication

Medication has been added to this exclusion. In addition we will pay a claim if it can be demonstrated that the alcohol/drugs/medication intake was not a contributing factor in the incident.

New - Dangerous goods

An exclusion for dangerous goods has been added. You are not covered when your vehicle is being used to illegally store or transport:

  • substances that pollute or contaminate; or
  • dangerous or hazardous goods

Driving a damaged motor vehicle

There is a new exception for when you are acting to prevent further loss or damage such as driving the vehicle from a busy motorway.

New - Reckless acts

We do not cover any reckless act by you, or by the driver of your vehicle or by a person acting with your encouragement, assistance or express or implied consent to the reckless act (such as street racing, burnouts, donuts, driving into water, illegally using a mobile telephone, driving at excessive speed).

New - Sale of your vehicle

We do not cover:

  • loss (including theft) of your vehicle (or the proceeds of sale) by a person authorised to offer your vehicle for sale;
  • loss (including theft) of your vehicle (or the proceeds of sale) following a private sale transaction;
  • loss of your vehicle (or the proceeds of sale) as a result of the bankruptcy or insolvency of a person authorised to offer your vehicle for sale.

Unregistered vehicles

This exclusion applies if the vehicle being driven/ridden, or any caravan or trailer attached to your vehicle being used at the time of an incident, was unregistered, unless the loss, damage, cost or legal liability was not caused by or did not result from the vehicle being unregistered.

New Optional Covers Available for an Extra Premium

Shannons Roadside Assist (RSA) for motor vehicles & motorcycles

If you purchase this optional cover, Shannons Roadside Assist helps you with:

  • changing a flat tyre;
  • towing your vehicle to your choice of repairer or your home;
  • jump starting or charging a flat battery;
  • minor breakdown related repairs;
  • emergency fuel delivery (maximum value of fuel $10);
  • lost or locked-in keys, by spare key delivery or locksmith attendance.

Cover is available 24 hours after purchase of this option.

Flexible Excess

If you have Comprehensive cover and your frequency of motor vehicle use is regular use, you can choose a flexible excess from the range we offer to reduce your premium. This excess is in addition to any other excess that applies.

Hire Car After an Event for Unlimited Days

Available with comprehensive cover (regular use) for motor vehicles and motorcycles. If you purchase this option, the most we will pay is $90 per day and the cover stops the day:

  • your vehicle is returned undamaged;
  • we repair your vehicle and return it to you;
  • we settle your claim.

Summary of Changes to Cover

Additional covers'

'Additional benefits' are now called 'Additional covers'. Some can be claimed independently to a claim for loss or damage to your vehicle.

Transport cover

Transport cover is now included; e.g. costs of you or the driver getting to your destination or to and from the repairer/hire car provider after an incident (up to a total of $250 per claim).

Comes with: Comprehensive & Third party legal liability (but only if the damage is covered under additional cover 'Damage by uninsured drivers').

Applies to: Motor Vehicles & Motorcycles

Theft of Keys and Re-Coding

We have removed the additional benefit 'Theft of Keys and Re-Coding'. Stolen keys (but not lost keys) are covered as part of your vehicle.

One Excess Free Windscreen or Window Glass Claim

Where your windscreen or window glass (including sunroof) is the only damage to your vehicle following an incident and can be safely repaired, 'One Excess Free Windscreen or Window Glass Claim' now offers one repair without you having to pay an excess or losing your one excess free glass replacement.

Comes with: Comprehensive

Applies to: All vehicles

Towing and storage costs

We cover the reasonable cost of towing and storage when your vehicle is damaged in an incident. There is now a limit of one tow from the scene of the incident for any one claim.

Comes with: Comprehensive

Applies to: All vehicles

Hire car after a not at fault incident

Where you can provide the name and address of the at fault driver and registration number of the at fault vehicle, we now arrange and pay the reasonable cost of a hire car that meets your transport needs. If one of our providers is unable to provide a hire car that meets your transport needs, we will pay you the reasonable cost you incur in hiring a car that meets your transport needs or in arranging alternative transport.

Comes with: Comprehensive (Regular use only) & Third party legal liability

Applies to: Motor Vehicles & Motorcycles

Hire car after an event for unlimited days (Optional Cover)

For Motorcycles: we now arrange and pay the reasonable cost of a hire car that meets your transport needs. If one or our providers is unable to provide a hire car that meets your transport needs, we will pay you the reasonable cost you incur in hiring a car that meets your transport needs or in arranging alternative transport.

The cover for Motor Vehicles has not changed.

Available with: Comprehensive (Regular use only)

Damage by uninsured drivers

When your motor vehicle or motorcycle is damaged in the period of insurance by a collision with another vehicle driven by an uninsured driver, we cover damage to your motor vehicle or motorcycle but only if:

  • the driver/rider, of your motor vehicle or motorcycle didn't contribute to the incident (this means that the other driver was entirely at fault). You may be able to show this by photographs taken at the scene, police report or witness statements; and
  • you give us the name and address of the uninsured driver and the registration number of the other vehicle, and we have otherwise agreed to pay your claim.

Limit: The most we will pay for any one incident is the reasonable cost of repairs, but not more than $5,000 in total.

Note: No excess applies under this additional cover.

Note: If due to the circumstances of your incident, you are unable to obtain the name and address of the person at fault and/or the registration number of the at fault vehicle, please contact us.

Comes with: Third party legal liability

Applies to: Motor Vehicles & Motorcycles

Baby capsules and/or child seats

Baby capsules and/or child seats are covered up to $750 per item per incident.

Comes with: Comprehensive

Applies to: Motor Vehicles

Third party property damage for caravans and trailers

We now cover you when your motor vehicle or motorcycle is towing a caravan or trailer in the period of insurance and loss or damage is caused to another person's vehicle or property.

Comes with: Comprehensive & Third party legal liability

New Vehicle Replacement

New Vehicle Replacement is now called 'New Vehicle After a Total Loss for Vehicles Less Than Two Years Old'. This has been increased from vehicles less than 1 year old.

Comes with: Comprehensive

Applies to: Motor Vehicles & Motorcycles

Racing Cover (Optional Cover)

Racing Cover is not available for new policies. Racing Cover has also changed from automatically applying to vehicles aged 60 years or more, to automatically applying to vehicles manufactured prior to 1961.

Available with: Comprehensive

Applies to: Motor Vehicles & Motorcycles

Hire car following theft up to 21 days

We now arrange and pay the reasonable cost of a hire car that meets your transport needs. If one of our providers is unable to provide a hire car that meets your transport needs, we will pay you the reasonable cost you incur in hiring a car that meets your transport needs or in arranging alternative transport.

Comes with: Comprehensive (Regular use only)

Applies to: Motor Vehicles & Motorcycles

After claim expenses

We cover personal tools and personal property in the vehicle at the time of the incident up to $1,000 in total.

Comes with: Comprehensive

Applies to: All Vehicles

Collectable caravan

We don't cover use of your collectible caravan as a place of residence or business.

Motoring Events

We have clarified when we will cover your vehicle at motoring events.

Changes to the Making a Claim Section

Changes have been made to the Making a Claim section including introducing or changing:

Excesses

We have removed any requirement for you to pay your excess in full at the same time that when a claim is made.

How we settle your claim

We have updated the settlement options for repairs and cash settlement.

If your claim for loss, theft or damage to your vehicle is covered under your policy we will either:

  • repair the damage or replace the damaged parts of your vehicle using one of our preferred repairers or you may choose your own repairer. If you choose your own repairer we will authorise repairs for the amount of the assessed quote from your repairer;
  • pay you the amount of the assessed quote from our preferred repairer when our preferred repairer is able to complete the repair or replace the damaged parts of your vehicle but you request a cash settlement;
  • pay you the amount of the assessed quote from your repairer if our preferred repairer is unable to carry out repairs or we do not authorise repairs based upon your repairer's quote; or
  • settle your claim as a total loss.

If your vehicle is a total loss

We have added more clarity around what happens when your vehicle is a total loss, including deductions from your total loss claim and what happens when your vehicle is under finance.

New section - Our right to recover from those who are responsible

We have the right and you permit us to take recovery action against a party responsible for your loss. We have added examples of the assistance that may be required from you if we take action against a party for the recovery of your loss.

Lifetime guarantee on authorised repairs

The quality of the workmanship and the materials authorised by Shannons in the repair of your vehicle will be guaranteed for its life. We have removed the need for you to own the vehicle for the guarantee to apply. You will not be entitled to the lifetime guarantee on repairs that we do not authorise.

New section - Unavailable parts

Where a damaged part is no longer available, we will pay you the last known market price of that part.

We are not responsible for costs which occur because of delays in delivery of parts. If a part is unavailable in Australia we will pay the cost of surface freight (not airfreight) from the nearest reasonable source of supply.

New section - How to establish your loss

We have added a new section that explains how to:

  • establish an incident took place; and
  • prove your loss or damage.

The information above is not a complete list of the changes to your Shannons Motor Insurance Product Disclosure Statement (PDS). For full details of what is and isn't covered, please read the Shannons Motor Insurance PDS. Please read the relevant Product Disclosure Statement before you make any decision regarding this product. The Target Market Determination is also available. These changes apply to policies renewing on or after 23 March 2021.