The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.
A fresh legal controversy is unfolding, concerning a disputed hire car bill totaling $29,000, which has now been directed back to court for further review.
This legal clash originated from a vehicular accident in Wollongong, December 2021, where Cameron Lazicic’s car collided with and irreparably damaged Thomas Rossi’s Honda Civic.
While Mr. Lazicic’s insurer, NRMA Insurance, admitted liability for the damages, they refuted the $29,684 bill from credit hire company Right2Drive. This charge was for a Hyundai i30 rented at $343 per day for 86 days, until Mr. Rossi’s car was replaced.
The total bill for the car hire exceeded the cost of purchasing some models of the Hyundai i30 outright. This discrepancy has sparked significant legal debate.
Given NRMA Insurance’s rejection of the credit hire claims, Mr. Rossi proceeded to sue Mr. Lazicic. However, in an interesting turn during the Local Court proceedings, the magistrate observed Mr. Rossi’s apparent confusion and reluctance, noting that credit hire company Right2Drive had likely initiated the lawsuit by exercising a right of subrogation.
Known for offering replacement vehicles to car crash victims with the assurance of reclaiming the expenses from the at-fault party’s insurer, credit hire companies have drawn the ire of motor insurers. The main concerns stem from their substantial fees, which insurers argue inflate claims and, consequently, hike insurance premiums.
NRMA Insurance provided evidence illustrating that alternative hire car services in Wollongong offered rates as low as $90 per day at the time of the accident. Mr. Lazicic maintained that a rental fee of $7380, equivalent to $85.52 per day, was more reasonable. However, the Local Court ruled against him, holding him liable for the full credit hire bill.
In his appeal last month, the NSW Supreme Court’s Justice Jeremy Kirk highlighted a critical lack of communication between Right2Drive and Mr. Rossi about the financial implications of the hire.
Justice Kirk remarked that Mr. Rossi received a call from Right2Drive shortly after the accident. According to the Local Court magistrate, during this call, there was no discussion regarding payment, rates, or potential discounts. Justice Kirk noted, "When asked about agreeing to pay roughly $345 for a fairly ordinary $22,000 car, Mr. Rossi implied he was unaware of the rate being charged." Further, Mr. Rossi did not inquire about the costs involved.
Ultimately, Justice Kirk overturned the Local Court’s initial decision, citing the magistrate’s failure to provide detailed reasoning or critically assess whether Mr. Rossi's actions in incurring the rental expenses were justified.
This matter has been sent back to the Local Court for a new hearing, promising further developments in the ongoing legal battle.
The original source of this story can be found on [Insurance News](https://www.insurancenews.com.au).
Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.
AustralianSuper, one of Australia's largest superannuation funds, has announced substantial increases in insurance premiums, effective June 2026. This decision affects approximately 1.7 million members and is primarily driven by a notable rise in mental health and disability claims. - read more
For many Australian retirees, the dream of a comfortable and secure retirement is being overshadowed by the escalating costs of home insurance. Over the past five years, the average cost of home insurance in Australia has surged by 51%, according to analytics firm Finity. This substantial increase is placing considerable financial pressure on retirees, many of whom are on fixed incomes and find it challenging to accommodate these rising costs. - read more
As Australian households grapple with escalating cost-of-living pressures, the insurance industry is facing the dual challenge of maintaining coverage affordability while managing an uptick in claims, particularly related to mental health and disability. Recent research from national insurance provider Youi highlights that over two in five Australians (42%) report a deterioration in their financial position over the past two years, with 66% indicating they are just keeping up or likely to struggle if faced with unexpected expenses. - read more
AustralianSuper, one of Australia's largest superannuation funds, has announced a significant change to its default income protection insurance. Effective from 28 February 2026, the fund will reduce the default income protection cover to $1,000 per month. This adjustment aims to align insurance coverage with members' actual income levels and prevent over-insurance, which can erode retirement savings. - read more
CareSuper has announced an enhancement to its income protection insurance offerings. Starting 1 April 2026, members can apply for income protection cover up to 87% of their current income, including up to 12% super contributions. This is an increase from the previous limit of 85% of income, which included up to 10% super contributions. - read more
When life throws unexpected challenges your way, income insurance can be a financial lifesaver. Essentially, it's a policy designed to replace a portion of your income if you're unable to work due to illness or injury. Imagine not having to worry about bills piling up while you focus on recovery. That's the peace of mind income insurance aims to provide. - read more
Entrepreneurship in Australia - a landscape overview: The allure of entrepreneurship in Australia is undeniable, with the promise of innovation, personal autonomy, and potentially limitless earnings. However, the path of an entrepreneur is often unpaved and unpredictable. Without the safety nets traditionally provided by corporate employment, Australian entrepreneurs must proactively safeguard their personal finances against the capricious winds of business fortune. - read more
Insurance is a crucial component of financial planning. While many Australians understand the importance of life insurance, there's another vital type of coverage that often gets overlooked: income protection insurance. - read more
Income protection insurance is a type of insurance policy designed to provide you with a continuous flow of income in case you are unable to work due to illness or injury. It's a safety net that helps ensure you can maintain your standard of living, even when unforeseen health issues arise. - read more
Insurance plays a crucial role in safeguarding our financial future. It serves as a safety net, ensuring that we can manage unexpected events without severely impacting our financial stability. For Australian adults, having the right types of insurance coverage is essential for peace of mind and financial security. - read more
Start Here !
Apply now for your free Insurance assessment and price comparisons!
