As Kiwis recover from the devastating hailstorm in Timaru, the Insurance Council of New Zealand (ICNZ) has issued a warning about buying hail-damaged cars.
Insurers are still assessing whether some of the hail-damaged vehicles in the city can be repaired or should be deemed uneconomic to repair. Tim Grafton, chief executive of the ICNZ, expects a large number of hail-damaged vehicles to be sold through a variety of channels over the coming months — warning potential buyers to be well informed before taking any action.
“It is important that anyone looking to purchase one of these vehicles knows what they are buying. While damage may not be structural, all will have significant hail damage. We advise people to complete their due diligence and understand exactly what they are buying, especially if they are unable to inspect the vehicle prior to purchasing it,” Grafton said.
ICNZ also reminded buyers to purchase insurance if they are going to use the cars on the road rather than for parts or for some other reason. It also encouraged people affected to contact their insurer or authorised insurance broker as soon as they can for arrangements to be made to assess the damage or losses and progress claims.
“We encourage people to discuss this with their insurer before purchasing to ascertain what type of cover may be available to them, what the premium might be and if any special terms or conditions may apply to prevent any nasty surprises should there be the need to claim in the future. Insurance policies don’t provide cover for existing damage, so they will need to disclose the hail damage to their insurer,” Grafton said. “Similarly, if they repair any damage, they will need to inform their insurer so the car can be appropriately insured.”
