20 Jun 2018

Windscreen insurance cover no longer free at Vero

8:10 pm on 20 June 2018

New Zealand drivers are at risk of losing their free vehicle glass cover.

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Insurance claims for a windscreen replacement will not longer be covered for free at Vero. Photo: AFP

Vero announced today they would begin charging an excess on windscreen replacement claims because of rising costs.

An insurance claim for a windscreen reached more than $15,000, the average cost for an older vehicle was $200.

In a statement, the company said an increase in claims paired with a rapid increase in vehicle technology meant the cost of replacing broken windscreens was no longer sustainable.

"The challenges for vehicle insurance appear to be industry wide, and we continue to look for ways to reduce costs and improve efficiency," Vero's statement reads.

NZbrokers chief executive Jo Mason said the change was unfair for the majority of New Zealand drivers.

"It's not something that New Zealanders are used to, they've had free windscreen glass repair for such a long time ... I really think this goes to the real psyche of a kiwi," Ms Mason said.

"I mean you pay for your windscreen glass obviously through your premium, but they've never actually had to pay an excess so it's quite a change in the insurance landscape."

The change would most likely sting people with older cars as the average age of New Zealand vehicle was 14 years, she said.

There were fears that more companies would follow suit, which could lead to fewer people fixing or replacing their windscreens.

Auto and House Glass director Barry Sullivan said he feared people would ignore serious windscreen faults if they could not afford the cost.

"Some clients don't have the excess, so how long are they going to run around with broken windscreens before they get it repaired?" Mr Sullivan said.

"I mean in some cases, warrants of fitness are 12-monthly and they could get a crack day after the vehicles been given a warrant of fitness ... they could run around in that vehicle for eleven-and-a-half months before they go in to get another warrant."

Motor Transport Association chief executive Craig Pomare urged people to look for alternative insurance providers if they were affected by the policy change.

"It's important that people, if they do have an issue with their windscreen that they do obviously get that seen to, and if their insurance company is not prepared to assist in that regard, then they should shop around and find someone that is prepared to do that."

Mr Pomare said he expected more insurance companies would follow Vero's lead.

Vero said the customers who were likely to be affected was small, and windscreen repairs would still be covered.

"Because only approximately seven percent of our customers claim for windscreen repair or replacement every year, we believe these changes will only affect a small number of customers, and will assist us to keep premiums more affordable for the majority of our customers," Vero said.

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