Car Insurance NZ Principles
Owning a car is very beneficial since it enables you to do many things that you could otherwise not do if you didn’t have one. However, it can be risky since you may lose it due to occurrence of different risks that happen unexpectedly, hence the need for measures to overcome the problem. It would therefore be a good idea to take up car insurance policies in a bid to protect the car and yourself shouls a claim be necessary. Car Insurance in NZ is, however, highly regulated through different principles to prevent exploitation from people who may want to file for false claims.
When applying for car insurance in New Zealand, the person whose name appears on the title documents should be the one to sign the policy documents. The insurance companies consider that person has the insurable interest in the car, whether he or she actively participated in acquiring it or not. It is therefore impossible to sign on behalf of the legal owner, since you will be considered as not having ownership rights to the car.
The principle of utmost good faith requires that people should disclose accurate information at the time of filling the insurance application form or the policy documents for car insurance in New Zealand. This information is very important in determining the level of risk that you or the car are exposed to, which ultimately determines the amount you will pay as premiums to the insurer. Failure to give accurate information during the application can haunt you by having you being denied compensation even when the insured risk occurs.
For a risk to be considered insurable, it should be certain that you must have no influence over the occurrence of such a risk. This means you should not try to influence the occurrence of the risk in order to be compensated simply because you do not like the car or want to gain in any other way. This explains why the insurance company will send assessors to ascertain the actual cause of an accident should a claim be lodged.
Car insurance in New Zealand falls under property insurance, which means you will need to surrender the damaged car to the insurance company, if it compensates you through replacing the damaged car. This is often regarded as the principle of subrogation and is meant to ensure that the insured does not obtain financial benefits due to the compensation from the insurer. Even when the car is stolen, you should assist the insurer in recovering it, since you cease being the owner once the compensation is made.
Car insurance is very important in reducing the level of risk you are exposed to when you have a car. It is important that you follow all the rules including paying your premiums promptly, as this increases chances of being compensated when a particular claim occurs. You therefore have peace of mind knowing that you are covered in all aspects relating to protecting your car ownership and the finances related to such matters.