If you have a car accident while you’re driving outside the terms of your licence, or breaching the road rules, it’s important to understand that it could have an impact on any insurance claim you need to make. That’s because when you take out insurance, you’re agreeing to do all you can to prevent loss. In return, your insurance company is agreeing to cover you if something happens is preventable.
For car insurance, this includes things like locking your car, keeping it well maintained, and following New Zealand laws to keep us safe on the road. If you’re breaching those laws and you have an accident, you may need to prove that your collision would have happened regardless or your claim might be declined.
Policies can differ slightly, but here are some things to look out for as they are usually not covered under your car insurance:
– Accidents that happen when the car is being driven by someone without a current licence
– Restricted licence holders who are driving after 10pm or carrying passengers
– Driving without corrective lenses if required on your license
– Accidents when the driver is under the influence of drugs, or over the legal limit for alcohol
– If you’ve refused to take a breath test after an accident
– If you’re using your car for hire, or carrying fare paying passengers on a private insurance policy
If you don’t hold a New Zealand licence and you have an accident, you’ll still be covered if you have an international licence. Most insurers, however, will apply an additional excess for drivers on an international licence.
Inexperienced driver excesses
Most insurers include conditions for drivers under the age of 25, or ‘new drivers’ i.e people who’ve had their licence for less than a year. In most cases, if a driver is under 25, they’ll still be covered in an accident but you may have a higher insurance excess. Some policies exclude under 25’s completely unless you specifically name them, so it’s a good idea to check your cover.
It is important to remember that driving without a valid licence or outside of your licence terms doesn’t just affect your insurance, it’s also illegal, and can be dangerous. Make sure you’re driving within your licence and follow road rules to help keep everyone safer on our roads.