Leaving Keys in Your Car Could Void Your Insurance
A recent decision has highlighted a costly mistake many drivers still make — leaving keys inside an unattended vehicle.
In this case, a motorist briefly left his car parked across the street while unloading groceries. The keys were left inside the vehicle and several doors and windows were open. Within minutes, the car was stolen and later found badly damaged.
The insurer declined the claim, relying on a common policy condition within most insurance policies, requiring drivers to take reasonable care to prevent loss, including a clear warning that keys should not be left in a vehicle when it is unattended.
The Australian Financial Complaints Authority (AFCA) agreed with the insurer, finding that even a short absence can mean a vehicle is considered unattended — particularly when it is unlocked, exposed to public access and the driver is not able to continuously observe it.
Importantly, AFCA confirmed that being “within sight” of the car is not enough if the driver is distracted or unable to intervene.
What this means for you
- Leaving keys in a car, even briefly, can void theft cover
- Vehicles can be considered “unattended” in minutes — not hours
- Convenience or short stops do not override policy conditions
Our advice: Always remove your keys, lock your vehicle and secure it properly — even when stopping for just a moment. What feels like a minor oversight can result in a major uninsured loss.
If you’re unsure how your motor policy defines “reasonable care” or “unattended”, speak to your Action Insurance Brokers adviser before it becomes a claim issue.
Latest News
- EMPLOYMENT REDUNDANCIES: A GROWING LEGAL RISK FOR EMPLOYERS
- NSW WORKERS COMPENSATION – KEY CHANGES AHEAD (2026 UPDATE)
- HIDDEN RISK IN YOUR HOME – FLEXI HOSES
- ELECTRIC VEHICLES ARE DRIVING UP CLAIM COSTS – AND PREMIUMS ARE FOLLOWING
- CYBER BREACHES ARE RISING — WHAT AUSTRALIAN BUSINESSES NEED TO KNOW
- SUPPLY CHAIN DISRUPTION: WHY YOUR INSURANCE NEEDS A SECOND LOOK
- HAIL HAVOC: EXTREME WEATHER LOSSES SURGE IN 2025
- LITHIUM‑ION BATTERIES IN STRATA: NO LONGER A MINOR BY‑LAW ISSUE
- WHY HOME INSURANCE AFFORDABILITY IS BECOMING A SERIOUS ISSUE
- WHY E‑BIKE CLASSIFICATION CHANGES MATTER FOR ROAD USERS AND INSURERS
