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Rising Costs Lead 1 in 4 Australians to Risk Voiding Car Insurance

by Celia

Rising living expenses are pushing nearly one in four Australian motorists to delay or skip essential vehicle maintenance, potentially jeopardizing their car insurance claims, according to a new survey by Compare the Market.

The study, which surveyed over 1,000 Australians, reveals that 19% are servicing their vehicles less frequently, while 4% have stopped regular servicing and cleaning altogether. Additionally, 22% have reduced how often they wash their cars due to financial pressures.

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Adrian Taylor, Executive General Manager of General Insurance at Compare the Market, warned that neglecting routine car maintenance could have serious financial consequences. “If your vehicle is found to be unroadworthy before an accident, your insurer may deny your claim, leaving you with hefty out-of-pocket costs for both your repairs and any third-party damages if you are at fault,” he said.

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As cost-of-living pressures continue to rise, more Australian drivers are opting to cut back on servicing their vehicles. However, Taylor cautioned that foregoing regular maintenance could ultimately lead to greater expenses if mechanical failures or accidents occur.

“It’s a risk that could end up costing far more in the long run,” Taylor added, emphasizing the importance of maintaining a roadworthy vehicle to avoid complications in the event of a claim.

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