RAC_CAR_PDS_28082024

RAC Car Insurance
Combined Product Disclosure Statement

and Financial Services Guide
This is an interactive document
We designed it to be easy to navigate through
the sections. Look for the Return to Contents
button to return back to the Contents page.
RAC Insurance Pty Limited (ABN 59 094 685 882) (RAC Insurance) is an authorised
general insurance company specialising in general insurance products. Our Australian
Financial Services (AFS) Licence number is 231222. We have sole responsibility for
the content of the Product Disclosure Statement (PDS) in this document, the cover
provided under the policy, policy administration and the assessment and payment
of claims.
RAC Distribution Pty Ltd (ABN 71 092 581 470) (RAC Distribution) is our authorised
representative. Its Authorised Representative number is 238025. We have authorised
RAC Distribution to distribute to you the Financial Services Guide (FSG) in this
document. RAC Distribution has a binding agreement with us that authorises them
to arrange for the issue of general insurance contracts on our behalf which are
binding on us just as if we had issued the policy ourselves. If you decide to purchase
this insurance policy, your contract will be with RAC Insurance as the insurer.
RAC Insurance and RAC Distribution are part of the RAC Group of Companies.
This combined PDS and FSG was prepared on 28 August 2024 and is effective
from that date.
Contents
Welcome to RAC Insurance.................................................................................... 4
Product Disclosure Statement............................................................................5
About this PDS..................................................................................................................5
Your duty to take reasonable care

not to make a misrepresentation ...............................................................5
The cover our car insurance policies provide .............................8
Your RAC Comprehensive Car Insurance ........................................10
Your RAC Third Party Fire and Theft Car Insurance...........16
Your RAC Third Party Property Damage

Car Insurance ..........................................................................................................................19
General exclusions...........................................................................................................21
Claiming on your policy...........................................................................................24
Making a claim.............................................................................................................. 24
When you claim........................................................................................................... 24
When we repair your car (choosing a repairer) ....................26
The parts we use ........................................................................................................28
Other important information..........................................................................30
Definitions...................................................................................................................................36
Financial Services Guide.........................................................................................38
About this Financial Services Guide (FSG)...................................38
Our services .....................................................................................................................38
How we are paid .........................................................................................................38
Addressing complaints .......................................................................................39
Compensation arrangements ....................................................................39
3
Welcome to
RAC Insurance
Thank you for choosing RAC
With RAC, you can rest assured knowing you’re covered by
WA’s most trusted car insurer.
We’re local to WA, and pride ourselves on offering helpful
service in the moments you need it most.
We’re here to help

Phone 13 17 03
Web rac.com.au
Self-serve rac.com.au/myRAC
You can manage your policies, renew or claim any time you
like. Simply log in or register at rac.com.au/myRAC
Looking out for members with vulnerabilities

We look to provide extra service and sensitivity to members
experiencing vulnerability. At various times, anyone may
need help due to their circumstances.
If you’re going through a period of vulnerability and need
extra help, please contact us or refer to our vulnerability
policy at rac.com.au
Return to Contents 4
Product Disclosure
Statement
Here’s some information about the PDS and how it works.
About this PDS

If you purchase our car insurance, there will be a contract
between you and us. This contract consists of:
» This PDS.
» The schedule we provide to you.
» Our Premium, Excess and Discount Guide (PED Guide).
» The Legal Rights and Obligations Guide (LRO Guide).
» Any document that we tell you forms part of the
terms and conditions of your insurance, such as a
Supplementary PDS.
If you can’t access a copy of these documents, please call
us on 13 17 03.
These documents explain the cover and benefits provided
by the car insurance and the limits, important information
and exclusions that apply to it. The aim is to help you decide
if this insurance is right for you.
You should read these documents carefully so you fully
understand the cover we provide and the limits, important
information and exclusions that apply to it.
Also, please see the ‘Definitions’ section so you understand
the words in this document that have special meanings.
Your duty to take reasonable care not to

make a misrepresentation
This insurance is a consumer insurance contract under the
Insurance Contracts Act 1984 (Cth).
Before we agree to insure you (including when we issue
you with the insurance for the first time or agree to renew,
extend, vary, reinstate or replace it), you have a duty to take
reasonable care not to make a misrepresentation to us.
A misrepresentation includes a statement that is in any way
false, misleading, dishonest or which does not fairly reflect
the truth. We will not treat something as a misrepresentation
merely because you failed to answer a question or gave an
obviously incomplete or irrelevant answer to a question.
When answering our questions you need to take reasonable
care to make sure your answers are true, honest, up to date
and complete in all respects.
If another person is answering for you, we’ll treat their
answers as yours. In such a case you should check the
questions have been answered correctly on your behalf by
them. Subject to applicable law, a breach of the duty by one
insured affects all insureds in these ways.
If you do not take reasonable care not to make a
misrepresentation, or if you are careless in your answers
or recklessly or deliberately make a misrepresentation, we
may, acting reasonably and subject to applicable law, reject
or not fully pay your claim or cancel your insurance or if
the misrepresentation was fraudulent, treat it as if it never
existed.
However, we will not do this if we would have entered into
the contract, for the same premium and on the same terms
and conditions, even if the failure had not occurred
(see ‘When we can refuse to pay or reduce the amount we
pay under a claim’ within the LRO Guide for more detail).
Whether or not you have taken reasonable care not to
make a misrepresentation is to be determined by us acting
reasonably, with regard to all relevant circumstances.
We must also take account of any particular characteristics
or circumstances about you that we were aware of, or ought
reasonably to have been aware of.
If any question or guidance provided is not clear or you
need additional assistance, you can contact us.
Telling us about any changes during
the period of insurance
You must tell us about any of the following things as soon
as you reasonably can, as they form the basis on which we
have agreed to insure you:
» Changes to any information you have previously
provided to us about you or your car (including how you
use it), and anyone who drives it (as applicable) as listed
on your schedule.
» If you have made a modification to your car (where
applicable).
» If you, or a reasonable person in your circumstances,
would believe anything has occurred that may or will
give rise to a claim under your policy.
If you don’t tell us about any changes, we may:
» Reject or not fully pay your claim.
» Require you to repay any money paid to you for your
claim.
» Cancel your policy or choose not to renew your policy.
If any changes need to be made and we agree with them,
we’ll propose some changes to your policy and send you an
updated schedule. We’ll also advise if a different premium
applies.
We will only rely on any rights we have under your policy
acting reasonably and to the extent permitted by applicable
law.
You don’t need to tell us about changes we’re already
aware of.
Our agreement with you
The cover your policy provides will be available to you for
the period of insurance in return for your premium.
This contract is between you and us. When more than one
person is named as the policyholder in your schedule, we’ll
treat them all as joint policyholders. Please note that:
» A statement, act, omission or claim by any one
policyholder is treated as a statement, act, omission or
claim by all joint policyholders.
» We can deal with (or make payment to) one joint
policyholder with no need to also pay or deal with the
other policyholders.
» Each policyholder has authority to change or cancel
the policy, and we do not need to contact the other
policyholders.
Certain persons or entities who are not contracting parties
may be entitled to access cover by reason of the Insurance
Contracts Act 1984 (Cth). See ‘Third Party Interests’ within
the LRO Guide for more detail.
The cover our car insurance policies provide
This PDS explains the three levels of car insurance cover
and benefits we provide.
RAC Comprehensive Car Insurance
This provides the highest level of protection and the most
benefits.
It covers your car for accidental damage, vandalism,
malicious damage, theft, storm, fire and explosion. It also
covers another person’s car or property if you damage this
in an incident.
RAC Third Party Fire and Theft Car Insurance
This provides limited protection.
It covers damage to your car caused by fire or theft, as well
as accidental damage your car causes to someone else’s
car or property.
It doesn’t cover accidental damage to your car, except
where the driver of the other vehicle is uninsured and was
solely at fault (subject to a limit).
RAC Third Party Property Damage Car Insurance
This provides a very basic level of cover.
It covers you for damage your car causes to someone else’s
car or property in an incident.
It doesn’t cover accidental damage to your car, except
where the driver of the other vehicle is uninsured and was
solely at fault (subject to a limit).
Your cover
The level you‘ve selected will be shown on your schedule.
For your convenience, the cover and benefits each level
provides are summarised in the ‘Key benefits’ table. For full
details of cover including exclusions, please read the pages
that follow.
These insurance products were designed for their
respective target markets. Please refer to rac.com.au for
our combined Target Market Determination (TMD). If you
believe you fall outside our target market, please call us on
13 17 03.
Key benefits of your cover
This table summarises the cover and benefits of each
level of cover. Read the PDS for full details of cover, what it
includes and what’s not included.
Key benefits
Comprehensive Third Party Third Party

Car Insurance Fire and Theft Property
Car Insurance Damage Car
Summary of cover Insurance
Damage to your car Maximum cover Only fire, theft No cover

and attempted
theft
Damaged by ✔ ✔
✔
uninsured vehicle Up to $5000 Up to $5000
Lifetime guarantee
✔ ✔ ✔
on repairs
Legal liability ✔ ✔ ✔
Temporary cover for

✔ ✔ ✔v
your new car
Agreed value ✔ ✔v xv
Windscreen and
✔ x xv
window glass
Lost or damaged ✔ xv xv
personal belongings
New car replacement ✔ xv xv
Hire car after fire, theft

✔ ✔ xv
or attempted theft
Travel or
✔ x vx
accommodation costs
Tools of the trade ✔ x vx
Towing ✔ ✔ xv
Cover for your keys ✔ ✔v xv
Accidental death
✔ x xv
benefit
Automatic cover for

✔ ✔ xv
accessories
Hire car after accident Optional x x
Your RAC
Comprehensive Car
Insurance
What we cover
If you purchase our Comprehensive Car Insurance, you’ll be
covered anywhere in Australia for the following.
Loss or damage to your car
We’ll cover your car for accidental loss or damage that
occurs during the period of insurance. This includes loss or
damage caused by:
» Accidental collision.
» Accidental damage.
» Accidental impact, for example, a tree falling on your car.
» Vandalism or malicious damage.
» Theft or attempted theft.
» Fire.
» Storm, hail or lightning.
» Explosion.
This cover applies when your car is being driven by (or
is in the custody and control of) you or anyone with your
permission and who meets and complies with the terms
and conditions of your policy unless that person has other
insurance covering the same loss or damage.
Your legal liability
We’ll cover your liability for accidental damage caused to
another person’s property arising from an incident that
involves your car, or a trailer or a caravan attached to it.
We also cover:
» Anyone driving your car with your permission and who
meets and complies with the terms and conditions of
your policy, unless that person has other insurance
covering the same liability.
» You – while driving a substitute car (excluding hire cars)
because your car is being repaired, serviced or has
broken down.
» Any legal costs incurred in connection with any such
alleged liability if we’ve given our written consent to
those costs which won’t be unreasonably withheld or
delayed.
The most we’ll pay is $25,000,000 for any one incident.
We do not cover:
» Your liability if the property damaged is your own or is in
your custody or belongs to or is in the custody of your
spouse, child or other person who normally lives with
you.
» Damage to another person’s property when your car is
being transported rather than being driven. This includes
while your car is being loaded or unloaded from the
means of transport.
» Loss or damage to any substitute car.
» Liability when your car is being offered for sale on your
behalf by another party.
» Liability whether directly or indirectly connected with
asbestos.
Your additional benefits

These additional benefits are included in your policy. You
can claim for these in the event of an incident that we cover.
Windscreen and window glass cover
When your car’s windscreen, sunroof or window glass
is broken in an incident, we’ll either replace or repair the
broken glass (including tinted glass, window seals and
mouldings).
Your personal belongings cover
We’ll pay up to $1000 for you to replace or repair your
personal belongings that were in your car if they’re lost,
stolen or damaged in an incident covered under your policy.
This cover doesn’t apply if your car was left unlocked when
the incident occurred.
We don’t cover cash, credit cards (or loss arising from the
subsequent use of credit cards), cheques, vouchers or
anything that can be cashed or traded. We also don’t cover
any personal property that’s not owned by you.
Your new car replacement cover
We’ll replace your car with a new vehicle of the same make,
model and series if all of the following apply:
» We declare your car a total loss.
» Less than two years have passed since it was first
registered.
» You’re the first registered owner (other than the selling
dealer if your car was a new demonstration model).
We’ll do this as long as a car is available to us to deliver to
you within 90 days of us deciding your car is a total loss.
If we can’t provide a replacement car, we’ll pay you the
higher of the agreed value of your car when it was first
insured with us or your current agreed value.
You may have made modifications or added accessories to
your car in the first two years of owning it. These additions
will only be covered under this benefit if you’ve increased
your agreed value to cover them.
When we replace your car under this benefit, we’ll also pay
for the on-road costs (including 12 months registration and
stamp duty) of the new car. This is provided you pay us
any refund amount you get from your car’s registration. We
don’t cover the cost of replacing or purchasing an extended
warranty or any other insurance.
If your car is financed, you must take reasonable steps to
get written consent from your financier so we can provide a
replacement vehicle.
Hire car after fire, theft or attempted theft
When you can’t use your car as a result of fire, theft or
attempted theft, we’ll arrange for you to get a hire car of a
similar size. We’ll pay the standard daily hire fee. If a hire car
isn’t available, we’ll pay you an equivalent cash settlement.
You can also extend your cover to include a hire car after an
accident (see the section on ‘Hire car after accident’).
The hire car will be available to you from when you report
the incident to us, until the earlier of:
» Your car is recovered or repaired and available for
collection by you.
» Your car is replaced by us.
» Three days have passed after payment has been issued
to settle your claim.
You’ll be responsible for:
» Paying the deposit required by the hire car company.
» Complying with the hire car company’s terms and
conditions.
We do not cover:
» Any hire car related costs other than what’s set out in
this cover section.
Essential temporary repairs for your car
Sometimes the damage may mean your car can’t be safely
driven home or to a repairer. You may need to arrange
for temporary repairs to make your car safe, secure or
roadworthy. If this happens, we’ll pay for those repairs up to
$1000.
Costs to complete your journey
When the loss or damage means you can’t use your car to
get you and your passengers from the scene of the incident
to your home, your original destination or to a safe place,
we’ll reimburse the costs necessary to do so up to $500.
Your emergency accommodation expenses
You may be in a situation where the loss or damage means
you can’t use your car, and you’re more than 100km from
your home. If this happens, we’ll pay up to $1000 towards
the cost of emergency accommodation for you and your
passengers.
Towing your car
When the damage is such that you can’t use your car,
we’ll pay for the reasonable cost of towing your car and
any caravan or trailer attached to it, from the scene of
the incident to the nearest approved repairer or to a safe
location that we agree to.
Your lost or stolen keys
We’ll replace your car keys when they’ve been lost or stolen.
This cover will include the cost of locks, barrels, fobs and
keypads.
Replacement of your child car seat
If your car is involved in a collision and you have a child car
seat in the car, we’ll cover the cost of replacing the car seat
with a new one of a similar standard. We’ll do this even if
there’s no apparent damage.
Accidental death benefit
If a covered incident involving your car directly results in the
death of its driver, we’ll pay $15,000 to the deceased’s estate.
We’ll only do this if the death occurs within 12 months of the
incident.
We do not cover:
» Death as a result of suicide or attempted suicide.
» Death if the deceased person was driving your car
without your permission.
Tools of trade
When your tools of trade are stolen or damaged in an
incident covered under your policy, we’ll pay up to $1000
for you to replace or repair them.
We only cover tools under this benefit that are connected
with your current trade. You may need to give us evidence
of your current business, trade or profession.
We do not cover:
» Tools stolen from an unlocked car or toolbox fitted to
your car.
» Tools that are not owned by you.
» Stock or samples, mobile phones, laptops or any
electronic items.
» Cash, credit cards (or loss arising from the subsequent
use of credit cards), cheques, vouchers or anything that
can be cashed or traded.
Temporary cover for your new car
When you replace your car, we’ll insure your new car for
14 days from the date of purchase.
There’s a maximum amount we’ll pay for loss or damage
that occurs within the first 14 days after the purchase of your
new car. The most we’ll pay is the purchase price of your
new car less any excesses that will apply.
For cover on your new car to continue, you must do all of
the following:
» Tell us about your new car within 14 days of purchasing
it.
» Provide us with all the details we need for the new car.
» Pay us any additional premium we require.
Also, it must be a car we would ordinarily insure.
If we agree to insure your new car, we’ll update your policy
and send you a new schedule. We’ll also advise if a different
premium applies.
Your optional benefit
If you pay extra, you can add this optional benefit to your
comprehensive car insurance cover. If you add this, it’ll be
shown on your schedule.
Hire car after accident
You can enjoy the convenience of having a hire car available
to you while your car is being repaired or after being written
off following any incident covered by your policy.
We’ll also pay a maximum of $3000 for any excess payable
under the hire agreement if there’s loss or damage to the
hire car.
This is an extension to the hire car after fire, theft or
attempted theft cover (see the section on ‘Hire car after fire,
theft or attempted theft’). It’s subject to the same terms and
conditions as that cover.
When you’re covered under this optional benefit, the cover
provided by your policy and all of its terms and conditions
will apply to the hire car, as if the hire car was your car.
Your RAC Third Party
Fire and Theft Car
Insurance
What we cover
If you purchase our Third Party Fire and Theft Car Insurance,
you’ll be covered anywhere in Australia for the following.
Loss or damage to your car
We’ll cover loss or damage that occurs during the period of
insurance and is caused by fire, theft or attempted theft.
We also cover:
broken down.
those costs which will not be unreasonably withheld or
delayed.
We do not cover:
you.
means of transport.
asbestos.
Damage to your car caused by an uninsured vehicle
We’ll cover damage to your car if the other vehicle involved
in the accidental collision is uninsured and that driver was
solely at fault in causing the incident.
We’ll also cover the reasonable cost of towing your car and
any caravan or trailer attached to it from the scene of the
collision to a safe location that we agree to.
We’ll provide this cover for damage to your car if all of the
following apply:
» The collision was solely the other driver’s fault.
» The driver of the other vehicle was uninsured.
» You provide us with enough information so we can
identify the ‘at fault’ driver, including their name, vehicle
registration number and contact details.
» The other vehicle was not owned or driven by you, your
spouse or any person who normally lives with you.
The most we’ll pay is $5000 or the agreed value of your
car, whichever is the lesser. Our payment will be less any
excesses that will apply.
Your additional benefits

These benefits are included in your policy, provided the
loss or damage to your car was caused by fire, theft or
attempted theft.
Essential temporary repairs for your car
Sometimes the damage may mean your car can’t be safely
driven home or to a repairer. You may need to arrange
for temporary repairs to make your car safe, secure or
roadworthy. If this happens, we’ll pay for those repairs up to
$1000.
Towing your car
When the damage is such that you can’t use your car,
we’ll pay for the reasonable cost of towing your car and
any caravan or trailer attached to it, from the scene of
the incident to the nearest approved repairer or to a safe
location that we agree to.
Hire car after fire, theft or attempted theft
When you can’t use your car as a result of fire, theft or
attempted theft, we’ll arrange for you to get a hire car of a
similar size. We’ll pay the standard daily hire fee. If a hire car
isn’t available, we’ll pay you an equivalent cash settlement.
The hire car will be available to you from when you report
the incident to us, until the earlier of:
» Your car is recovered or repaired and available for
collection by you.
» Three days have passed after payment has been issued
to settle your claim.
You’ll be responsible for:
» Paying the deposit required by the hire car company.
» Complying with the hire car company’s terms and
conditions.
We do not cover:
» Any hire car related costs other than what’s set out in
this cover section.
the following:
it.
premium applies.
Your RAC Third Party
Property Damage Car
Insurance
What we cover
If you purchase our Third Party Property Damage Car
Insurance, you’ll be covered anywhere in Australia for the
following.
We also cover:
broken down.
those costs which won’t be unreasonably withheld or
delayed.
We do not cover:
you.
means of transport.
asbestos.
Damage to your car caused by an uninsured vehicle
We’ll cover damage to your car if the other vehicle involved
in the accidental collision is uninsured and that driver was
solely at fault in causing the incident.
We’ll also cover the reasonable cost of towing your car and
any caravan or trailer attached to it from the scene of the
collision to a safe location that we agree to.
We’ll provide this cover for damage to your car if all of the
following apply:
» The collision was solely the other driver’s fault.
» The driver of the other vehicle was uninsured.
» The other vehicle was not owned or driven by you, your
spouse or any person who normally lives with you.
The most we’ll pay is $5000 or the agreed value of your
car, whichever is the lesser. Our payment will be less any
excesses that will apply.
Your additional benefit

This additional benefit is included in your policy.
the following:
it.
premium applies.
General exclusions
You also need to know what you’re not covered for. These
exclusions apply to all cover under your policy.
Who uses your car
We won’t cover any loss, damage or liability caused by or
arising out of the use of your car by any person who:
» Wasn’t authorised or licensed to drive your car.
» Broke the conditions of their driver’s licence or learner’s
permit.
» Received medical advice that their ability to drive a car is
impaired by a medical condition or treatment.
» Refused or failed to take a test for alcohol or drugs or
submit a specimen for testing when requested by police.
» Was under the influence of alcohol or drugs, or had a
blood alcohol content level exceeding that permitted
by the laws of the relevant State or Territory, and this
may have caused or contributed to the loss, damage or
liability.
We also don’t provide cover for any loss, damage or liability
if any of the following things applied to the driver of your car
in the last three years before the incident:
» They’ve had their driver’s licence cancelled, suspended,
disqualified or special conditions applied.
» They’ve been convicted of a criminal offence related to
theft, fraud, arson, criminal damage or illicit drugs.
» They’ve had car insurance declined, withdrawn,
cancelled or its renewal refused.
However, if you weren’t the driver, we may still provide cover
for loss or damage to your car if you can show that you
didn’t know (and reasonably couldn’t have known) that any
of these exclusions applied to the driver. However, we won’t
provide liability cover for the driver and may try to recover
money from them.
Cause of loss, damage or liability
We don’t cover any loss, damage or liability contributed or
caused directly or indirectly by:
» Failures, defects or breakdowns which are mechanical,
electronic, electrical or structural.
» Errors or omissions involving access to, processing
of, use or operation of any computer system or any
unavailability or failure to access, process, use or operate
any computer system. This exclusion will not apply to
any physical loss or damage (excluding vandalism or a
malicious act) directly caused by an incident or event we
cover you for under the policy.
» Loss of use, reduction in functionality, repair,
replacement, restoration or reproduction of any data
(including the value of any data).
» Sparks, ashes, carbon or pollutants from your car.
» Any person or organisation lawfully taking, keeping or
destroying your car.
» Terrorism, war (whether declared or not), invasion,
rebellion, revolution or a similar event.
» Anything nuclear or radioactive.
» Wear, tear, rust or corrosion.
» Failure to take all reasonable care to protect your car, its
contents and keys.
» Your car being left unattended with the keys in or on it.
Use of your car
We don’t cover any loss, damage or liability which occurs
during, or is caused by, the use of your car:
» On a permanent or temporary racetrack, raceway,
course, circuit or arena (unless you’re participating in a
safe driving course commercially conducted by trained
instructors).
» For racing, trials, speed or hill climbing tests, pace
making, contests, rallies or for endurance or skills tests
whether or not you’re competing in an event.
» In an experiment or demonstration.
» While it’s overloaded, not roadworthy, not registered or
not meeting relevant government transport regulations.
» In a manner that involves deliberate exposure to
exceptional danger or any wilful or reckless act.
» In a manner contrary to its manufacturer’s
recommendations.
» To illegally store or transport, in quantities greater than
those used for domestic purposes, dangerous goods or
substances that pollute or contaminate.
» For unlawful purposes or in a manner that is in breach of
any law or regulation.
We also don’t cover any loss, damage or liability if your car
is:
» Being hired out.
» Used as a taxi, limousine or to provide a chauffeur or
small charter service.
» Used to deliver goods for a fee as a contractor or
otherwise, e.g. food delivery, parcel couriers.
» Used for rideshare unless:
> we’ve specifically agreed to provide this cover, and
> the ridesharing use is for less than the hours per week
and conditions specified and printed on your schedule.
Waiting period
We don’t cover loss, damage or liability caused by flood,
storm or bushfire within the first 48 hours after you
purchased your policy, or after you’ve increased your
existing insurance cover, but only to the extent of that
increase in cover unless either:
» You purchased your car on the same day your policy
started.
» Your policy started immediately after another policy
covering the same car ended, and there was no break or
change in the level or type of cover.
Other things we don’t cover
We also don’t cover:
» Depreciation, wear, tear, rust or corrosion.
» Deliberate damage caused by you or anyone using your
car with your permission.
» Any reduced value of your car after it has been
damaged and repaired, provided the repairs have been
carried out correctly. This includes any loss or damage to
vehicle identifiers, such as the original compliance, build
or vehicle identification number (VIN) information.
» The cost of fabrication of any parts.
» The cost of any air freight charges.
» Any cost for parts that exceed the manufacturer’s last
issued catalogue or price list.
» Additional costs because parts are unavailable or
obsolete, or because of delays in obtaining parts.
» Any extra costs for paint work that doesn’t meet the
manufacturer’s standard paint specification.
» Stock or samples connected with your work or trade.
» Any loss or damage covered by other insurance that’s
compulsory or was not purchased in your name.
» Any consequential loss.
Claiming on your
policy
Making a claim
Here’s how to make a claim and a short outline of what
happens.
1 Step 1 – Get ready to claim

You may need:
» Your policy number or address and personal
details.
» Incident details (when and what happened).
» Details of anyone else involved.
» Any quotes or receipts.
2 Step 2 – Make your claim

You should tell us about your claim as soon as
reasonably possible. Here are a couple of easy
ways to claim:
» Claim online at rac.com.au
» Call us on 13 17 03.
3 Step 3 – We’ll guide you through the process

Our local claims team will review your claim and
will let you know the next steps.
When you claim

You must cooperate with us
In short, you need to be truthful, cooperate with us and give
us any information we reasonably need in dealing with your
claim.
You must promptly provide us with full details of the
incident that led to your claim. These details may include:
» Name and contact details of anyone involved, including
witnesses.
» Registration numbers of any vehicles involved.
» Proof of ownership for any damaged or stolen property,
such as receipts, owner manuals and warranties.
» Copies of any letters, notices, court or other legal
documents received relating to the incident or claim.
» Receipts for expenses you’ve incurred that are covered
under your policy.
You must also:
» Report any theft, attempted theft or malicious damage
to the police as soon as reasonably possible.
» Take all reasonable steps to prevent loss or damage
from occurring, or continuing to occur, once becoming
aware of actual or potential loss or damage as soon as
reasonably possible.
» Provide truthful and complete information to us.
» Not admit liability for, or negotiate to settle, any claim
without our written permission.
» Provide written statements if we reasonably need them.
» Attend court and give evidence if we reasonably need it.
» Make your car available to us if we need access to it.
» Provide reasonable assistance to us, even after we’ve
settled your claim, in any proceedings we take to recover
any money we’ve paid under your policy.
We’re entitled to represent you or any other person covered
under your policy:
» In the negotiation, defence, settlement or any legal
proceedings relating to a claim on your policy.
» In any proceedings to recover any money we’ve paid
under your policy.
If you don’t provide reasonable assistance to us in relation to
these matters, we may:
» Reject your claim.
» Pay a reduced amount for your claim.
» Require you to repay any money paid for your claim.
We’ll do this in accordance with applicable law (see ‘When
we can refuse to pay or reduce the amount we pay under a
claim’ within the LRO Guide for more detail).
And, finally, you need to send any documents you have
received that suggest there is (or may be) a claim made
against you which may be covered under this policy as
soon as reasonably possible after they are received. These
may be emails, letters, notices or court documents that refer
to bringing action against you or seeking compensation for
injury or damage.
Excesses
When you make a claim, you will be asked to pay an excess
before the claim is finalised. The specific excesses that apply
to your policy and amounts payable are shown on your
schedule. Details of the types of excesses that can apply are
set out in the PED Guide. An excess will apply to all sections
of your policy unless stated otherwise. More than one
excess may apply to your claim.
You will not have to pay an excess towards your claim if
both:
» The incident was solely the fault of the other person
(not the person in charge of your car at the time of the
incident), and
What we do when your car has been damaged
After we accept your claim, we’ll do one of the following:
» Arrange for the damage to your car to be repaired
or replaced to a condition as near as possible to its
condition immediately before the incident. We’ll do this
using materials or components that are current and
available at the time of repair.
» Make a payment to settle your claim based on the
reasonable cost of repair or replacement of the
damaged parts of your car. This amount will be based
on our technical assessment of any quotes provided to
undertake the repairs.
In determining which of these approaches to take, we’ll act
reasonably, having regard to your preference and other
relevant factors.
We won’t pay more than the agreed value of your car, less
any excess and outstanding premium amounts payable by
you.
When we repair your car (choosing a repairer)
If we decide to repair your car, we obtain competitive quotes
from our network of approved repairers. You can also ask a
repairer of your choice to provide a quote.
We provide a lifetime guarantee on workmanship and
materials on repairs that we’ve authorised. We guarantee
this quality, whichever repairer is chosen. This is in addition
to any other rights you may have. If you wish to make a
claim under this guarantee, please contact us with details,
including any costs you incur in making the claim.
We won’t provide any cover under the lifetime repair
guarantee if:
» We didn’t authorise the repairs to your vehicle.
» There’s deterioration or wear and tear caused:
> Over time.
> By exposing your vehicle to the elements.
> By your failure to maintain your vehicle in good order
and repair.
Our goods come with guarantees that can’t be excluded
under the Australian Consumer Law. You’re entitled to a
replacement or refund for a major failure and compensation
for any other reasonably foreseeable loss or damage. You’re
also entitled to have the goods repaired or replaced if the
quality isn’t acceptable, even if the failure isn’t a major failure.
Previous unrepaired damage contribution
We’ll return your car to as near as possible to its condition
immediately before the incident. If the repairs to your
car leave it in a better condition than before the damage
occurred, you may need to contribute to the repair cost if
you want to proceed.
This may happen if, for example, there’s previous unrepaired
damage (or previous poor repairs), rust, wear and tear that
mean we need to repair damage to your car that wasn’t
caused by the incident. We’ll always discuss this with you
and seek your agreement and contribution to the costs.
If you don’t want to pay these amounts, we’ll pay you for the
repairs directly related to the accepted claim. This amount
will be that of the assessed quote from our preferred
repairer.
Please note that we don’t cover repairs to undamaged areas
of your car to create a uniform appearance.
We pay for storage
If we’ve decided to repair your car and we need it to be held
in storage until the repairs can start, we’ll pay the storage
cost.
The parts we use
The parts we use in the repair of your car are covered under
our repair guarantee.
To restore your car to its condition immediately before
the incident, we’ll use parts consistent with your car’s age,
condition and warranty period and:
» If your car is within the manufacturer’s new vehicle
warranty period we’ll use new original equipment
manufacture (OEM) parts, except for the replacement of
windscreens, sunroofs and window glass where we may
also use other Australian design rule compliant parts.
» If your car is outside the new vehicle warranty period
we’ll use new or recycled OEM parts. For some
components, such as radiators and air conditioning
condensers, we may also use other Australian design
rule compliant parts.
If replacement parts are not available, we’ll pay you what it
would have cost us to repair your car had the parts been
available.
This amount will be based on our technical assessment of
any quotes provided to undertake the repairs.
When we declare your car a total loss
We’ll declare your car a total loss when either:
» The damage to your car is such that it would not be safe
or economical to repair. This will be the case if the repair
costs plus the value of the car in its damaged state are
likely to be more than the agreed value.
» It was stolen and not recovered.
If your car is a total loss, we’ll either:
» Replace your car, if you are entitled to this under our
new car replacement cover.
» Pay you the agreed value of your car.
When this happens, we’ll deduct, or you must pay us:
» Any excesses that will apply.
» Any unpaid premium (including any remaining
instalment payments based on the full annual premium
of your policy).
» The value of the unused portion of your car’s
registration.
When we settle a total loss claim:
» Anyone who has a financial interest in your car (of which
we are aware) will be paid first and you’ll be paid the
balance.
» Your car becomes our property.
» Your policy comes to an end.
» There’s no refund of any portion of your premium.
About your car’s agreed value
At the start of your cover, we may give you a range of
values (using our external data provider) to help you choose
your car’s agreed value. The agreed value should include
any vehicle accessories and legal modifications. We then
review the agreed value ahead of the beginning of each
following period of insurance and provide the value on your
schedule. We recommend you review the agreed value to
ensure it suits your needs and contact us if you have any
concerns. The agreed value may change when your policy
renews but it doesn’t change during the period of insurance.
Except where a different limit is shown in your policy for an
item of cover, the most we’ll pay is the agreed value shown
in your schedule, less any applicable excesses.
Some items of cover have their own limits. In those cases,
we won’t pay more than the limit for that item.
Other important
information
About your premium
We take into account a number of factors when working out
your premium. These factors include but aren’t limited to:
» The make, model and year of your car.
» Who’ll be driving your car and their driving history.
» The address where your car is kept.
» Costs associated with operating our business.
» Government charges.
» Discounts that may apply to you.
Your premium is shown on your schedule. If you’d like to
know more about how your premium is calculated, please
refer to our PED Guide.
Paying your premium
You can pay your premium either in one annual payment or
by instalments.
Your total premium will be less if you make one annual
payment than if you pay it in instalments. The extra amount
that you pay for instalments helps cover the increased cost
of administering this service.
You can pay your premium in one annual payment, two
six-monthly payments, or 12 monthly payments. You can
pay by credit card or by direct debit through your financial
institution.
When you pay by instalments, you must ensure that:
» You provide financial details that are correct.
» You have sufficient funds in your account for each
instalment payment.
» You advise us of any change to your financial details
at least two business days before your next instalment
payment is due.
You may contact your financial institution if you have an
issue about your account or a direct debit.
We’ll give you at least 14 days’ notice if we change any of
your instalment payment arrangements.
If paying by direct debit, we may automatically renew your
policy on the renewal date. If we plan to automatically
renew, we’ll let you know about this at least 14 days before
your cover ends and send you details of your renewal
premium.
If you don’t want to renew your policy, you should let us
know before the renewal date.
If you don’t pay the full amount of your premium or any
additional amount we may charge, we may reduce the
period of insurance to match the amount you’ve paid.
Instalment payments
When you choose to pay by instalments, we’ll send you a
notice advising of the first and future payment dates.
The first and future direct debit payments will be made on
the due date unless that date is not a business day, when
the payment will be made on the business day closest to
the due date.
Please contact us immediately if you believe that an
unscheduled payment has been made.
Where an instalment payment is overdue by:
» More than 14 days and you make a claim on your policy,
we may refuse to pay your claim.
» More than one month, we may cancel your policy
without notice and refuse to pay your claim.
If any of your instalment payments are rejected by your
financial institution due to insufficient funds in your account
or errors in your financial details, any fees that result from
rejections will be payable by you.
Cancellation of instalment payments
If you decide to cancel your instalment payment
arrangement, you need to:
» Give us at least two business days’ notice.
» Arrange with us to pay the remaining premium due.
If you’ve made a claim, or one has been made against you
in the current period of insurance, then you may be required
to pay any outstanding premium due on your policy.
Credit card charges
We may charge a merchant fee when you pay your
premium or your excess by credit card.
Goods and services tax (GST) and input tax credit
entitlement (ITCE)
Your policy, the amounts insured and the premium that you
pay are subject to GST.
You may be able to claim an ITCE for the GST that you pay
on the premium for your policy. Please advise us of your
ITCE when or before you make a claim on your policy.
If you’re eligible to claim an ITCE, we’ll deduct this amount
from any payment we make to you.
We recommend that you seek advice from a financial
advisor if you’re unsure about the tax implications of your
policy.
Cooling off period
When you take out a policy or renew a current policy with
us, we give you a cooling off period of 28 days. The cooling
off period starts:
» From the date and time we issue a new policy to you, or
» On your renewal date.
If you want to cancel your policy during the cooling off
period, you must tell us you want to do that. If you do this,
as long as you haven’t made a claim during this period, we’ll
refund your premium less:
» Any non-refundable government charges.
» Any relevant administration fee.
» A proportionate amount of the premium for the period
of insurance provided up to the point of cancellation,
where applicable.
If you’d like to know more, please refer to our PED Guide.
Cancellation by you at any time
You can cancel your policy at any time. To do so, please
notify us and we will refund your premium less:
» Our administration fee.
» Our premium for the period of insurance provided.
Any refund will be limited to the premium paid in the
current period of insurance.
If you’ve claimed on your policy during the period of
insurance, a refund of premium may not apply. A refund will
not apply when we’ve paid a total loss claim.
Cancellation by us
If we cancel your policy, we’ll advise you in writing and
refund you any remaining portion of your premium less:
» Our premium for the period of insurance provided.
If you’ve claimed on your policy during the period of
insurance, a refund of premium may not apply. A refund
won’t apply when we’ve paid a total loss claim.
Any refund will be limited to the premium paid in the
current period of insurance.
Other fees and charges
If your policy is changed or cancelled and the premium
refund or premium payable is less than $10, no refund or
request for payment will be made.
Resolving complaints and disputes
We take great pride in our service to members. If you’re
not satisfied with the service and would like to make a
complaint, please contact us.
Phone 13 17 03
Email InsuranceMemberFeedback@rac.com.au
We take feedback very seriously and will handle any issues
according to our complaint and dispute resolution process
and in accordance with applicable law. This is set out in our
Complaint and Dispute Management Policy available at
rac.com.au
If you’re not satisfied with the way your complaint
was handled, you can contact the Australian Financial
Complaints Authority for free.
Phone 1800 931 678
Mail Australian Financial Complaints Authority
GPO Box 3, Melbourne VIC 3001
Email info@afca.org.au
Web afca.org.au
Your privacy
We and our authorised representative, RAC Distribution,
(together the ‘RAC’) collect, store and use your personal
information in accordance with the Privacy Act, and as set
out here and in our Privacy Policy. By taking out your policy
you agree to this.
RAC usually collects your personal information from you
directly, though may also collect it from a third party.
If you don’t provide us with the personal information we
need, we may be unable to issue, administer or manage
products and services you wish to purchase.
RAC uses and requires your personal information to
consider your insurance application and any subsequent
application for insurance, issue and administer your policy,
and investigate and assess any insurance claim.
We also use your personal information in the course of
administering and managing the products and services you
and other members have with us, including for dealing with
any complaints and claims. This may include the use of your
details to administer a claim by another party.
For the purposes of doing so, your personal information
may be passed to, or received from, a joint policyholder,
RAC’s assessors, investigators, repairers, suppliers,
contractors, other insurance companies, insurance
reference bureaus, law enforcement agencies, our related
companies, legal and professional advisers, IT providers, and
their agents, some of whom may be overseas.
The RAC may also use your personal information to tell
you about other RAC Group products and services. Your
personal information may be passed to other entities for
promotional purposes. These entities may be associated
with the RAC, operate under RAC’s brand, or be agents,
contractors or allied organisations. You may tell the RAC
not to use your personal information for these promotional
purposes at any time by contacting us on 13 17 03.
If the interest of a financier is noted on your policy, you
consent to the RAC providing details of your policy and its
currency to the financier.
If you’d like to review or correct the personal information
the RAC Group has about you, or if you wish to make a
complaint, please call 13 17 03. For more information, see
the RAC Group Privacy Policy at rac.com.au
Financial Claims Scheme
The purpose of the Financial Claims Scheme (FCS) is to
protect certain policyholders and claimants in the event
an insurer becomes insolvent and can’t pay its obligations
under the policy. A person entitled to claim may be entitled
to payment under the FCS, subject to meeting eligibility
criteria. Information about the FCS can be obtained from the
Australian Prudential Regulation Authority (APRA) website at
fcs.gov.au or the APRA hotline on 1300 55 88 49.
The General Insurance Code of Practice
We adhere to the General Insurance Code of Practice, which
aims to improve industry standards and practice across
general insurance products and services.
The code is independently monitored and enforced by the
Code Governance Committee. You can obtain a copy of the
code by visiting codeofpractice.com.au
Updating the PDS
We may need to update this PDS from time to time if
certain changes occur, where required and permitted by
law. We’ll issue you with a new PDS or a Supplementary
PDS or other compliant document to update the relevant
information except in limited cases. Where the information
is not something that would be materially adverse from the
point of view of a reasonable person considering whether
to buy this insurance, we may issue you with notice of this
information in other forms or keep an internal record of
such changes. You can get a paper copy free of charge by
calling us.
About us
Please contact us if:
» You need to clarify any of the information contained in
this PDS or your policy documents.
» You wish to confirm a claim transaction.
» You have any other queries about your policy.
The underwriter and the issuer of your policy is RAC
Insurance Pty Limited (ABN 59 094 685 882, AFS licence
number 231222), a wholly owned subsidiary of RACI Pty
Ltd (ABN 40 008 671 805), part of the RAC Group of
Companies.
You can contact us:
Phone 13 17 03
Web rac.com.au
In person visit any RAC member service centre
Mail PO Box C140, Perth WA 6839
Definitions
When used in this PDS, the following words have defined
meanings.
accident or accidental – an event that happens during
the period of insurance that was sudden, unintentional and
unexpected where loss or damage occurs. This includes a
series of events arising out of the one occurrence.
agreed value – the amount we agree to insure your car
for. The amount is listed on your schedule. It includes the
value of GST, registration, on-road costs and any vehicle
accessories and legal modifications.
consequential loss – is any loss or damage following an
insured event, that is not directly caused by an insured
event. Consequential loss includes but is not limited to:
» The cost of your time to help us with your claim, loss of
wages or income, medical costs.
» Non-financial loss including loss of opportunity or
enjoyment, physical or mental stress or inconvenience,
injury to feelings or humiliation, delay in claims handling
or repairs, interference to peace of mind.
excess – the amount you need to pay towards settlement of
any claim.
incident – an accidental event.
keys – a device designed to access or start your car.
modifications – any structural or mechanical alteration
made to your car’s original specification that may affect its
value or performance.
moonroof – same as sunroof (see sunroof).
PED Guide – Premium, Excess and Discount Guide
designed to provide you with additional information about
discounts, excesses and the calculation of premiums that
apply under your policy. It’s available at rac.com.au or
by calling 13 17 03.
period of insurance – the period of time your policy
provides cover for, as shown in your schedule.
policy – together this PDS, PED Guide, LRO Guide, schedule
and any document that we tell you forms part of the terms
and conditions of your insurance such as a Supplementary
PDS we may issue.
premium – the amount you pay for your insurance. This
includes GST and government charges.
rideshare or ridesharing – the use of your car to carry
passengers for a fee but does not include the use of your
car as a taxi, limousine or to provide a chauffeur or small
charter service.
schedule – the document we give to you that shows the
particular details about you, your car and the insurance we
have agreed to provide.
sunroof – a glass panel in the roof of a car that can be
opened for ventilation.
terrorism – any act of terrorism including but not limited to
the use of force or violence and/or threat, by any person or
group of people done for (or in connection with) political,
religious, ideological or similar purposes including the
intention to influence any government and/or to put the
public, or any section of the public, in fear.
tools of trade – tools, equipment and machinery you
use to earn an income in your current business, trade or
profession. This doesn’t include office equipment or stock.
vehicle accessories – items specifically manufactured
to only be used while fitted to a car and that are not
reasonably capable of being used separately from a car.
we, us, our – RAC Insurance Pty Limited.
you, your – the person, people or entity named as the
policyholder on your schedule.
your car – the vehicle described in your schedule, including
its modifications and vehicle accessories.
Financial Services
Guide
About this Financial Services Guide (FSG)
This Financial Services Guide provides you with information
about RAC Distribution Pty Ltd (in this FSG defined as RAC
Distribution, we or us) to assist you in deciding whether
to use the financial services we provide. This FSG outlines
the type of services and products we can offer you. It also
explains how we are remunerated and includes details of
our complaints handling procedures and how you can
access them.
Any advice about the products we give you is of a general
nature. We don’t take into account your needs, specific
objectives or financial position.
You can contact us:
Phone 13 17 03
Web rac.com.au
In person visit any RAC member service centre
Mail PO Box C140, Perth WA 6839
Our services
RAC Distribution is authorised by RAC Insurance Pty Limited
(RAC Insurance) to offer you a range of financial services on
RAC Car Insurance including to:
» Provide general product advice (advice that has not
been tailored to your personal objectives, financial
situation or needs).
» Arrange for the issue of RAC Insurance’s products.
» Issue RAC Insurance’s products as its agent.
» Agree on policy variations with you.
How we are paid
RAC Distribution does not charge you a fee or commission
for our services.
We operate under a fee-for-service arrangement based on
the amount of time we spend providing sales and services
on behalf of RAC Insurance. This fee is reviewed annually
and is subject to change from time to time.
Employees of RAC Distribution receive a salary and operate
under a performance-based incentive scheme. On average,
the bonus is unlikely to exceed 2% of the employees’ annual
salary.
You may, within a reasonable time after receiving this FSG
and before any financial service is provided, request to
obtain further information about the remuneration, fees and
any benefit that may be paid to us for these services.
Addressing complaints
Customer satisfaction is a priority for us. If you have a
complaint about the financial services we have provided,
please follow the steps for resolution of complaints set out
in the Product Disclosure Statement section on ‘Resolving
complaints and disputes’.
Compensation arrangements
RAC Distribution has professional indemnity insurance for
the financial services outlined in this FSG. The professional
indemnity cover extends to financial services provided by
representatives who are no longer employed by us in that
capacity but who provided such financial services at the
time the loss, damages or breach of an obligation occurred.
We’re here to help
p 13 17 03
w rac.com.au
Deaf, hearing or speech
impaired members may
refer to accesshub.gov.au
RAC Insurance Pty Limited ABN 59 094 685 882

AFS Licence Number 231222
RACI011 042RCR0001 28082024

RAC_CAR_PDS_28082024

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RAC Car Insurance

Combined Product Disclosure Statement

Product Disclosure Statement............................................................................5

About this PDS..................................................................................................................5

Your duty to take reasonable care

The cover our car insurance policies provide .............................8

Your RAC Comprehensive Car Insurance ........................................10

Your RAC Third Party Fire and Theft Car Insurance...........16

Your RAC Third Party Property Damage

Claiming on your policy...........................................................................................24

When you claim........................................................................................................... 24

When we repair your car (choosing a repairer) ....................26

The parts we use ........................................................................................................28

Other important information..........................................................................30

Financial Services Guide.........................................................................................38

About this Financial Services Guide (FSG)...................................38

Our services .....................................................................................................................38

How we are paid .........................................................................................................38

Addressing complaints .......................................................................................39

Compensation arrangements ....................................................................39

We’re here to help

Looking out for members with vulnerabilities

About this PDS

Your duty to take reasonable care not to

Comprehensive Third Party Third Party

Damage to your car Maximum cover Only fire, theft No cover

Temporary cover for

New car replacement ✔ xv xv

Hire car after fire, theft

Tools of the trade ✔ x vx

Cover for your keys ✔ ✔v xv

Automatic cover for

Hire car after accident Optional x x

Your additional benefits

Your additional benefits

Your additional benefit

1 Step 1 – Get ready to claim

2 Step 2 – Make your claim

3 Step 3 – We’ll guide you through the process

When you claim

RAC Insurance Pty Limited ABN 59 094 685 882

RACI011 042RCR0001 28082024

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