AustraliaMy insurance company denied my car claim because I didn't disclose a minor speeding fine. Can they do this?
In most cases, no — an insurer cannot deny your car insurance claim solely for failing to disclose a minor speeding fine, unless it was relevant to your risk and you acted fraudulently or failed to comply with your duty of disclosure under the Insurance Contracts Act.
What the Law Says
The Insurance Contracts Act 1984 (Cth) sets out strict rules about what you must tell your insurer before buying or renewing car insurance — and what happens if you don’t.
Under Australian law, you have a duty of disclosure when entering into an insurance contract. This means you must tell the insurer anything that a reasonable person would consider relevant to the insurer’s decision to accept the risk — but only facts that are known to you, or that you could reasonably be expected to know.
A single minor speeding fine (e.g., a $100 fine for going 5 km/h over the limit) is unlikely to be considered a 'material fact' — especially if it didn’t result in licence suspension, demerit points affecting your status as a full licence holder, or any pattern of traffic offences.
The insurer can only avoid (cancel) the contract or refuse a claim for non-disclosure if two conditions are met: (1) you failed to disclose something material, and (2) the insurer proves it would not have entered into the contract — or would have done so on different terms — had the fact been disclosed.
Even then, the insurer’s remedy is limited. Under section 28, they may reduce the claim payment proportionally — not reject it outright — unless the non-disclosure was fraudulent.
Statutory TextThe duty of disclosure imposed on the insured is a duty to disclose to the insurer, before the contract is entered into, every matter that is known to the insured and that a reasonable person in the circumstances would regard as being material to the decision of an insurer…
— Insurance Contracts Act 1984 (Cth), s. 21(1) — Duty of disclosure
Statutory TextWhere the insured has failed to comply with the duty of disclosure… the insurer may, subject to subsection (3), avoid the contract… but only if the insurer would not have entered into the contract… or would have done so only on different terms.
— Insurance Contracts Act 1984 (Cth), s. 28(2) — Remedies for non-disclosure
Statutory TextIf the failure to comply with the duty of disclosure was not fraudulent, the insurer is not entitled to avoid the contract… but may reduce the amount payable… in respect of a claim.
— Insurance Contracts Act 1984 (Cth), s. 28(3) — Non-fraudulent non-disclosure
What to Do
Check your policy documents and the insurer’s rejection letter — they must explain *why* the fine was considered material.
Gather evidence: proof the fine was minor (e.g., no demerit points, no court appearance, paid promptly), and that you’ve had no other traffic offences in the past 5 years.
Lodge a complaint with the Australian Financial Complaints Authority (AFCA) — it’s free, independent, and binding on insurers up to $1 million.
If AFCA finds in your favour, the insurer must pay your claim (or part of it) — and may also be required to cover your reasonable costs.
Sources
Not legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: 2026-06-08.