AA Insurance has revealed that the Auckland floods are expected to cause the largest car insurance claims event in the company’s history.
The insurer reported that it has either settled or made an offer to settle close to 60 per cent of the record 1500 claims for damaged vehicles following the severe weather event.
“We know that losing a vehicle can impact heavily on our customers’ lives – disrupting their ability to get to work, drop kids off at school or childcare, and other family commitments,” said Beau Paparoa, Head of Motor Claims at AA Insurance.
“Due to the nature of the flooding, we are assessing most flood damaged vehicles as a total loss – which means we can settle these claims quickly and get money to our customers’ hands, so they can move fast to source a replacement vehicle and get back on the road.”
The insurer stated that many electronic systems on new cars can be compromised if flood water enters certain areas of a vehicle which is the reason as to why many vehicles involved in the claim event have been written off.
Claims are still expected to rise over the coming days and weeks with AA Insurance’s latest figures showing it has received more that 5300 in total, 2300 being for homes, 1500 for contents, and 1500 for vehicles.
However, that’s just for one insurer. The Insurance Council of New Zealand states that the Auckland floods have seen about 20,000 claims be lodged all up, a number that continues to rise.
