If you caused an accident with another person and their car needs to be repaired, we may pay for their rental vehicle costs. The other person involved in the crash is called the "Third Party".
If the third party's policy doesn’t cover a rental vehicle, this is called an uninsurable loss. Trade Me Insurance can cover a portion of these rental vehicle costs, but not the full cost of the hirage.
There is also some exclusions that we would apply in these cases. Where we agree to meet the reasonable hire costs, the following expenses associated with the running of the hire vehicle will always be excluded from the settlement. It will be up to the third party to cover these costs:
- Fuel / oil and other such consumables.
- Any charge to reduce the insurance excess amount on the rental vehicle. The rental company will impose a very high excess on their vehicle in the event of an accident. The rental company will offer the hirer the option to have this excess amount reduced, but this would be at a cost to the hirer. We do not cover this.
- We will only cover reasonable hire costs. For example we won't cover the cost to hire a Ferrari when the Third Party only has a Toyota Corolla.
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