Without 'excess-free glass cover' option, my insurance says I have no cover at all?

Forums › Transport (cars, bikes and boats) › Without 'excess-free glass cover' option, my insurance says I have no cover at all?

abreis

5 posts

Wannabe Geek

#311943 29-Feb-2024 09:25

Hi everyone. I took my first car insurance policy about 6 months ago. I went with AA, the mid-tier option: "Third Party, Fire & Theft".

There was an option for excess-free glass cover that I did not choose. The wording made me think that this option was for not having to pay excess on glass repairs.

My windscreen cracked this week, and now AA is saying that without that option, I have no glass cover at all, zero.

People with AA insurance, does this sound right to you?

Thanks!

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943 posts

Ultimate Geek

ID Verified

#3201285 29-Feb-2024 09:28

If you only have "Third Party, Fire & Theft", and the windscreen crack wasn't caused by a fire or theft, how/why would you be covered?

Senecio

2710 posts

Uber Geek

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Lifetime subscriber

#3201287 29-Feb-2024 09:30

That's correct, not just for AA.

Third party fire and theft provides no glass cover at all unless you take out the optional cover. Only a comprehensive policy would provide basic glass cover.

Scott3

3963 posts

Uber Geek

Lifetime subscriber

#3201289 29-Feb-2024 09:37

Sound like you misunderstand 3rd party insurance.

For clarity, 3rd party insurance exists to provide cover for the damage that you may do to property owned by third parties. I.e. if you crash your car into a Lamborghini, and are found to be at fault, the insurance company will pay for the Lamborghini to be fixed/replaced (perhaps saving you from bankruptcy or a lifetime of debt), but will not pay for fixing/replacing your car.

The "fire & theft" bit of the policy, means that the insurance company will pay for damages to your car if they are the result of fire or theft. The glass add on that you declined, means they would have covererd your car for damages to glass.

It's a useful insurance product for those with low value cars, who are happy to carry the risk of damage to their own car themselves, but don't want to end up with life changing amounts of debt if they end up crashing into an electrical substation or something like that.

[edit] - OP states "mid tier", likely referring to:

Third party
Third party, fire & Theft
Comprehensive

Should note these are distinct differing levels of coverage. It's not really a mid teir offering. Under Third party, fire & theft, your own vehicle is not covered for collision damage at all (although some insurers do have cover for damage caused by uninsured third parties up to a few thousand dollars as long as a few criteria are met, like you providing their details).

abreis

5 posts

Wannabe Geek

#3201300 29-Feb-2024 09:48

Thanks everyone! The wording really made me think I would only be paying to get rid of the excess.

Will add that option to my policies now.

Scott3

3963 posts

Uber Geek

Lifetime subscriber

#3201301 29-Feb-2024 09:51

abreis:

Thanks everyone! The wording really made me think I would only be paying to get rid of the excess.

Will add that option to my policies now.

If you want coverage for your own car for collision damage, storm damage etc (anything other than fire and theft), you would need to upgrade to comprehensive insurance. Of course it is substantially more expensive (typically more than double the third party options).

abreis

5 posts

Wannabe Geek

#3201303 29-Feb-2024 10:00

Yes, they've quoted me ~$1200 a year for Comprehensive. But this is a $10.000 car...

Paying >10% of the car's value each year for insurance is rough.

Thank you for all the information!

djtOtago

1149 posts

Uber Geek

#3201315 29-Feb-2024 10:15

abreis:

Yes, they've quoted me ~$1200 a year for Comprehensive. But this is a $10.000 car...

Paying >10% of the car's value each year for insurance is rough.

Thank you for all the information!

$1200 is getting pretty pricey. I guess AA thinks it is a high risk car, or you are a high risk or young person. Have you looked at other insurance providers?

Out of curiosity what is the car model?

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evnafets

537 posts

Ultimate Geek

Lifetime subscriber

#3201317 29-Feb-2024 10:17

https://www.aainsurance.co.nz/help/article/360020667951-Can-I-include-excess-free-glass-cover-on-my-car-policy

If you choose not to include this benefit on your policy than the excess noted on your policy schedule will apply.
If you have Third Party Fire & Theft cover, damage to your windscreen or window glass is covered only if it’s caused by attempted theft or vandalism.

Are these two statements linked? Or two seperate conditionals?

If two seperate conditions then
- The analysis of "excess-free class cover" was correct.
- But regardless if the option is selected or not, given Third Party, Fire & Theft, you're not covered in this situation.

abreis

5 posts

Wannabe Geek

#3201324 29-Feb-2024 10:31

djtOtago:

$1200 is getting pretty pricey. I guess AA thinks it is a high risk car, or you are a high risk or young person. Have you looked at other insurance providers?

Out of curiosity what is the car model?

This is a 2010 BMW 5-series, a 535i. I wouldn't expect it to be a thief's favorite :) but maybe it is.

I'm in my late thirties so not a matter of age.

I am new to New Zealand however (from Europe), perhaps they penalize new arrivals.

I'll have to have a second look at other insurers.

abreis

5 posts

Wannabe Geek

#3201376 29-Feb-2024 10:39

evnafets:

- But regardless if the option is selected or not, given Third Party, Fire & Theft, you're not covered in this situation.

Oh wow that information is buried deep. The policy documents make no mention of this that I can find:

And that 'loss' is defined as "Sudden, unforeseen, accidental physical loss and sudden, unforeseen, accidental physical damage that occurs at a specific place and time."

So I would really need to move to Comprehensive to be covered _if my windscreen gets chipped with no obvious culprit_.

Technofreak

6530 posts

Uber Geek

Trusted

#3201447 29-Feb-2024 11:09

Since you are new to the country you will have no insurance history and therefore will have no rebate on your policy such as a person with several years insurance and without claims, other than glass claims. The rebates can be significant.

I think you will find AA's prices will be in line with other companies.

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cddt

1548 posts

Uber Geek

#3201528 29-Feb-2024 11:59

abreis:

Yes, they've quoted me ~$1200 a year for Comprehensive. But this is a $10.000 car...

Paying >10% of the car's value each year for insurance is rough.

Thank you for all the information!

I recently took out a policy with AA Insurance for a 2022 car we purchased new for $32,000, for comprehensive the premium was about $1200.

We do have house and contents with them though so there is some kind of bundle discount applied.

I would say you're unlucky to have had a windscreen crack - in 20 years I never have.

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mudguard

2113 posts

Uber Geek

#3201653 29-Feb-2024 16:03

cddt:

I would say you're unlucky to have had a windscreen crack - in 20 years I never have.

Might depend where you are and how much you drive. For awhile I almost averaged a windscreen per year. I think I've had seven in eleven years. But I also do about 40,000kms per year.

Oh eight. At least one rental car. I think almost all of them were from oncoming cars in roadworks 😡

DonH

230 posts

Master Geek

Lifetime subscriber

#3201690 29-Feb-2024 16:45

A long time back there was a fad of pressing your hand firmly against the windscreen when driving through roadworks etc, the rationale being that vibrations from the stone hitting the glass would be absorbed by the hand instead of rebounding and cracking the glass. You could even buy large suction cup devices to attach that allegedly performed the same function.

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cddt

1548 posts

Uber Geek

#3201756 29-Feb-2024 19:23

mudguard:

Might depend where you are and how much you drive. For awhile I almost averaged a windscreen per year. I think I've had seven in eleven years. But I also do about 40,000kms per year.

True. I do about 7,000 kms per year.

My referral links: BigPipe | Mercury

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