Motor Insurance at a Glance
What is motor insurance?
Motor insurance is a type of insurance that provides coverage for vehicles like cars, trucks, motorcycles, and other road plying vehicles against loss and legal liability. This insurance covers damages resulting from physical damage, accidents, theft, and other insurable incidents.
The policy holder can choose to insure the vehicle for an agreed amount or the market value of the vehicle. Depending on the type of vehicle, the insurance policy can be tailored to meet the specific needs of the policyholder. For example, if the vehicle is a classic car or a modified vehicle, the policy may need to provide additional coverage.
Motor insurance is essential for vehicle owners as it protects them against financial losses resulting from accidents and other insurable incidents. It also helps to cover the costs of repairing or replacing third-party vehicles in accidents where the policyholder is at fault. Overall, having a motor insurance policy provides peace of mind and financial protection for vehicle owners.
What you should consider?
Vehicle insurance is not mandatory in New Zealand, but it is recommended to have at least third party insurance to cover the costs of damage to someone else's vehicle in the event of an accident.
At FG Insurance, they offer "Agreed Value" coverage for owned vehicles. This means that they will work with the policyholder to determine the real value of their car and price the policy accordingly. This approach differs from other insurance providers who may only provide market value coverage.
Comprehensive motor insurance can cover the cost of a stolen vehicle, paying either the agreed value or market value so the policyholder can buy another car. Third party property damage (TPPD) insurance can cover the costs that the policyholder may be liable to pay if they are at fault and damage or write off someone else's car.
Overall, it is important to consider getting vehicle insurance to protect oneself from financial losses resulting from accidents, theft, or other insurable incidents. FG Insurance provides tailored insurance policies to meet the specific needs of the policyholder.
Did you know?
Motor Vehicles
In 2019, according to the NZ Police's Crime in New Zealand at a Glance report, 24,416 motor vehicles were stolen or broken into in New Zealand.
Highlights the need for comprehensive motor insurance
Vehicle Crashes
The 2016 Te Manatu Waka Motor Vehicle Crashes in New Zealand report recorded 36,855 vehicle crashes in New Zealand.
Importance of third-party insurance for accident coverage
In Claims
Insurance companies paid $1,159,798,847 in claims for private and commercial vehicles until September 2020, according to the Insurance Council of New Zealand's Market Data report.
Financial protection against insurable incidents
Types of Motor Insurance Covers
Comprehensive
Covers accidental loss or damage to the insured vehicle, as well as the cost of towing, transportation, and storage of the vehicle. Protects against a wide range of risks, including natural disasters, theft, vandalism, and collisions.
Third Party Fire and Theft
Covers loss or damage to the insured vehicle caused by fire and theft, as well as third-party property damage. Provides protection between comprehensive and third party only insurance.
Third Party Only
Covers the cost of third-party property damage in the event of an accident caused by the policyholder. Provides the minimum level of coverage required by law in New Zealand and is typically the most affordable option.
What Motor Insurance Covers
While exact coverage may vary between insurers, motor insurance generally covers:
- Cover to repair or replace the vehicle if it's damaged or stolen
- Damage to modifications, options, or accessories due to accidental damage, fire, flood, storm, theft, attempted theft, vandalism, or a malicious act
- Cover against damage to third party vehicle or property when the policyholder is at fault, including legal liability and legal costs, generally capped at predetermined levels
- Emergency repairs to the vehicle, covered up to a specified limit
- Choice of preferred repairer or one from a preferred repairer panel
- Cover for towing costs as well as trailer cover
- Option to include hire car cover following an accident or theft
- Option to include excess-free windscreen repair or replacement
What is usually not covered?
- Loss caused by the legal seizure of the vehicle.
- Loss caused by any act of terrorism, war, civil unrest.
- Loss caused by the discharge of any pollutant or contaminant from the vehicle.
- Loss arising from a breach of contract.
- Loss caused by failure to secure the vehicle.
CASE STUDY
Mr. Chung was driving on Quarantine Road when he briefly looked away from the traffic ahead. Unfortunately, he looked back just as the car in front of him had come to a sudden stop. Despite his attempts to brake, Mr. Chung's front wheels locked and his car collided with the vehicle in front, causing minor damage to his own car but serious damage to the third party's car.
After pulling over, Mr. Chung contacted his insurance broker who quickly arranged for his car to be towed and assessed. The next day, an assessor informed Mr. Chung that his car could be repaired and that his insurance policy would cover the cost.
Since his policy also included a rental car, his insurance company helped him arrange for a hire car so he could continue commuting to work while his car was being repaired – and the cost of the rental car was also covered by his policy.
Why choose FG Insurance?
- Peace of Mind at Affordable Rates
- Flexible Plans
- Roadside Assistance
- Fast and Simple Claim Service - online or by phone