Car insurance

Questions:

• What does Market Value mean?
• What does Agreed Value mean?
• Who is covered to drive my car?
• Can I insure my child's car?

 

Answers:

What does Market Value mean?

If your car is insured for market value and it’s written off or stolen, you’ll receive what the car was worth that day, not what it would cost to replace.  It can be an unwelcome surprise.  At AA Insurance, we think it’s fairer to use Agreed Value.

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What does Agreed Value mean?

Together we work out what your vehicle is worth, so you know exactly what we’ll pay if it’s written off or stolen – no haggling, no hassles. The Agreed Value of your vehicle is written on your policy schedule.

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Who is covered to drive my car?

Our car insurance has an open driver policy. This means that any licensed driver who is twenty-five or older – and who has your permission to drive your car – will automatically be covered, provided he or she does not have any unacceptable traffic or criminal convictions and has not made any unacceptable claims or had unacceptable accidents (for example, using the car illegally).

Drivers under twenty-five aren’t covered unless you’ve named them on the policy. If you want to clarify who’s covered to drive your car, or add another person to your policy, call us on 0800 500 213.

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Can I insure my child's car?

You can insure a car you own with your child as the main driver, but you can’t insure something someone else owns.  Under New Zealand law only the owner of the property is able to insure it. So if the items are jointly owned, the policy needs to name both owners.

This means if we mistakenly insure you for something you do not own, your policy may be cancelled and any claims you make may be invalid.

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