Buying car insurance can be daunting purely because of the fine print and all of the jargon that is associated with the car insurance industry.

Below we explain some commonly used terms. Feel free to contact us if there is anything else you would like explained or if you want further explanation on anything below.

Certificate of Motor Insurance

This is the policy document issued by the insurance company providing proof of insurance. It is required by law. We recommend printing this out and keeping a copy in your vehicle. It is proof that you have insured the vehicle and will be valid for the duration of the policy.

Comprehensive Cover

A claim is the application you make to your insurer to request payment for a loss that is covered by your car insurance policy.

Declaration

This identifies who is an insured, the insured’s details, the insuring company, what risks or property are covered, the policy limits (amount of insurance), the policy period and cost of the insurance (premium).
When filling out the online form on www.travellerscarinsurance.co.nz your details will be transferred on to your certificate of insurance which is emailed to you once payment is made (and you have agreed to the terms and conditions.

Conditions

These are provisions, rules of conduct, duties and obligations required for coverage.
For example
It is a condition of cover that all drivers drive throughout New Zealand according to the New Zealand Licence Authority Standards.
If policy conditions are not met, the insurer can deny the claim.

Excess

This is the financial contribution you are required to pay towards a claim you make on your car insurance policy. Compulsory excesses differ across the various insurers. Travellers Car Insurance requires a NZD$500 excess on each claim you make.

Exclusion

An event or circumstance in which the insurance company does not have to pay out.
For example ‘There is no payment made if an accident occurs while you are under the influence of alcohol, the proportion being more than is legally allowed while driving in New Zealand’.

Insured

This is the policy holder or the person who is insured. In this case it is the owner of the car that  is insured.

Insurer

The insurer is the company that will issue the car insurance policy and pay for any claims that are made. Travellers Car Insurance policies are administered by Crombie Lockwood & underwritten by QBE Insurance International Limited.

Market Value

The price for which you (the policy holder) could purchase the same or comparable vehicle, taking in to consideration it’s pre-loss age & condition.
With Travellers Car Insurance the Market Value is only relevant to Third Party Fire & Theft policies and the maximum amount payable is limited to NZD$3,000 for any claim.

No Claims Bonus

This is a discount that is given by many insurance companies as a reward for not making any claims. This doesn’t apply to Travellers Car Insurance, as we specialise in short term car insurance for travellers to New Zealand. However when you return to your home country , you might purchase a car and the company you select to get car insurance through is likely to offer a No Claims Bonus annually (yearly).

Premium

This is the cost of your insurance or the amount that you pay for it. For example 3 months, Third Party Only insurance for an 18 year old is $218.50.

Policy

The policy is the document setting out the legal rights and obligations between the insurer and yourself. When you purchase car insurance with Travellers Car Insurance you are able to view a sample policy before you purchase it. Your policy document is then emailed to you once you have paid for your policy and agreed to the policy terms and conditions.

Settlement

This is the amount of money that your insurer pays out for a claim.

Third Party Only Car Insurance

Sometimes referred to as liability insurance, third party vehicle insurance covers you (or authorised drivers) if you cause damage to persons or property caused by the vehicle you have insured. Third Party Insurance does not cover damage to your own vehicle.

Third Party Fire and Theft Insurance 

This option includes Third Party Only Insurance coverage and will also cover your car if it is stolen or damaged due to fire.

Underwriter

Underwriters work for the insurance company and accept or reject risks on behalf of the insurance company.