Trusted Panel Beaters NZ

1. Lack of Policy Understanding

Lack of policy understanding in insurance excess is a frequent pitfall that can lead to costly mistakes. Many vehicle owners overlook the importance of comprehending the policy wording of their insurance policy documents. This oversight often confuses to make a claim, as individuals may be unaware of coverage limitations, conditions, or the implications of their chosen standard excess.

2. Choosing the Wrong Repair Service

Opting for an unreliable service provider may compromise the quality of repairs and, ultimately, impact the excess amount a policyholder is responsible for. Inexperienced or untrustworthy repair services may inflate costs or overlook critical details, exacerbating financial burdens. Vehicle owners must conduct thorough research to select reputable and accredited repair service providers.

3. Applicable Age Excess Cost

Additional age-related excess in car repairs and excess refers to an additional cost associated with the age of the insured driver. Insurance providers may impose age-related excess, where younger or older drivers might face higher costs when making a claim. Younger drivers, deemed less experienced, and older drivers, perceived as higher risk, may encounter this additional financial burden.

4. Neglecting Documentation Importance

Accurate and thorough documentation is paramount. Failing to provide the necessary documents can cause delays in the claims process, adding to your financial and emotional stress. Understand the content policies and keep records organised and readily available.

5. Assessing Damage Too Late

Before filing a claim, assess the extent of the damage to your vehicle. Waiting too long to do this can result in inaccuracies in your claim, potentially increasing the excess you have to pay. Act promptly to avoid complications.

6. Overlooking Policy Details

Review your insurance policy details regularly from your insurance provider. Understanding the limits and conditions can prevent surprises and ensure a smoother claims process. Stay informed about any changes in your policy terms.

7. Balancing Cost and Quality

Balancing cost and quality is a delicate yet crucial decision for vehicle owners. Opting for the cheapest repair option may seem financially prudent initially, but it can lead to compromises in the quality of work. Consideration of reputable repair service providers and their track record becomes paramount, ensuring that the chosen option aligns with both cost-effectiveness and the high standards necessary for a reliable and safe driver experience.

8. Skipping Pre-Authorisation

Skipping the pre-authorization process can lead to complications. It’s a crucial step in managing excess payments efficiently and streamlining the claims process. Pre-authorisation is a vital step wherein the policyholder seeks approval from the insurance company before proceeding with repairs. Neglecting this crucial process may result in delays, disputes, or even denial of the claim, leaving the vehicle owner responsible for the full costs of repair.

9. Delaying Claims Processing

Prompt action after an accident is essential. Delaying the claims process can impact excess payments and leave you with higher repair costs. Report incidents promptly to your insurance company.

10. Ignoring Alternative Payment Options

Explore alternative payment options beyond direct excess payment. Negotiating with repair service providers or exploring financing options can ease the financial burden associated with a higher excess.

11. Understanding Voluntary Excess

A common mistake in voluntary excess for car repairs is setting the amount too high without considering one’s financial capacity. It’s crucial to recognise that it is a deliberate choice made by the policyholder, unlike the insurer-imposed excess, allowing individuals to tailor their insurance coverage according to their financial preferences. If the chosen voluntary excess exceeds what you can comfortably afford, it may lead to financial strain and challenges when covering repair costs.