Insurance company Vero is defending its decision to ditch free windscreen cover.
A Vero spokeswoman told AutoTalk the company has identified that the frequency of vehicle glass claims has risen sharply in recent few years.
“The rising number of claims, as well as rapid increases in vehicle technology, have contributed to a rise in claims costs for vehicle glass that we believe is not sustainable.
“To help futureproof our motor insurance products, we will now be applying an excess for windscreen replacement claims, in the same way as any other vehicle claim.”
Windscreen repairs will remain excess-free for all customers, while claims for vehicle glass will not affect our customers’ no claims bonuses, the spokeswoman says.
Only 7% of Vero customers claim for windscreen repair or replacement every year, which means the change only affects a small number of customers, she says.
“The challenges for vehicle insurance appear to be industry wide, and we continue to look for ways to reduce costs and improve efficiency.”
However, NZbrokers chief executive Jo Mason is concerned the change means owners of older vehicles will lose their free glass cover.
“Some new vehicle windscreens can contain a wide range of sophisticated technology including cameras, radar, rain sensors, heating elements, light sensors, UV protective cover and even acoustic lamination – which can be expensive to replace.
“We have seen one example of an insurance claim for a new car replacement windscreen a costing upwards of $15,000.
“The average age of the four million vehicles in New Zealand’s fleet is over 14 years – and you can pick up a standard windscreen for an older model for under $200,” she says.
Mason says Vero’s decision may spread across the insurance industry.
“Our concern with this change is that for the vast majority of vehicles on the road, the cost to replace their windscreen is just a few hundred dollars, but the policy change should not penalise the owners of older vehicles who do not have the latest technology.
“Unfortunately the change by one insurer will mean that for all motorists regardless of the age of their vehicle, they are likely to lose the benefit of a replacement windscreen with no excess at some stage in the future, if not already,”
“Left unchecked, we believe this trend could become commonplace among all insurers which would be inherently unfair to most Kiwis and could be better managed by premium or excess increases for just those cars with modern technology,” she says.
Consumers need to make sure they check their insurance policy when it comes time to renew it, Mason says.
Other insurers have been contacted for comment.
