By Jimmy Higgins
Executive General Manager, Claims
15 March, 2017
When you drive, you’re constantly checking your surroundings. You’re keeping an eye on other motorists around you, and making a mental note of who’s speeding up, slowing down or turning.
You rely on other motorists to do the same thing – but accidents still happen.
Third party liability cover
All car insurance policies in New Zealand include cover for liability to third parties.
That means that if someone else accidentally causes damage to your vehicle and they’re insured, their insurer will usually cover the cost of repairing or replacing your car. But in New Zealand car insurance is not compulsory, and there are drivers on the road who have no insurance at all.
It depends on your level of cover
Say someone else has hit your car.
You weren’t at fault – you might even have been parked at the time. But they’ve got no insurance.
With comprehensive cover, you can make a claim immediately for the damage to your car with your insurer.
Even if the other driver has insurance, it’s often easier to go through your own insurance company and let them sort out recovery of the costs from the other party.
Many insurance policies will waive the excess for your car repairs if you weren’t at fault – they’ll be recovering those costs from the other driver. Check your policy to see if that applies for you.
Third party cover
If you only have third party cover (or third party, fire and theft), your policy doesn’t include any cover for your car if it’s in a collision – only for your liability to others.
That means if the other driver has no insurance, you won’t be covered even if it’s not your fault.
Tips for selecting car insurance
If you’re not sure which is right for you, think about what will happen if your car is damaged or written off.
- Have you got enough money to replace or repair your car, or would you need insurance money?
- Have you got a realistic idea of what your car is worth? (its market value).
- How will you get around if your car is being repaired for anywhere from a few days to a few weeks? Do you need policy with a rental car benefit?
- How much would your premium and excess be, in comparison to the value of your car?
For some customers, comprehensive cover gives them piece of mind, but for others third party policies might be the right solution.
|2||If it’s safe, take photos immediately while the cars are still in position. Send them to your insurer when you make a claim.|
|3||If there are independent witnesses, get their details if you can.|
|4||Take down the other driver’s details – name, phone number, registration number and insurance provider.|
|5||Make sure to provide all the required details when you make your claim.|
Right now the motor repair industry is struggling to keep up with demand for repairs, particularly for panel beating and collision repairs.
By Michael Burke
Executive Manager, Motor Claims