Insurance cover for vehicles with expired COF/WOF and driver licenses

August 31, 2021 9:30 am

If your vehicle’s COF/WOF has expired during the lockdown period, or a driver license run out, then there is concern that this may make invalid any insurance cover that you have or vehicles. RTANZ has had a briefing from Ian Taylor of IAG that put at rest some of these concerns (the IAG group covers around half of all commercial motor vehicles).

Ian advised that there are two areas that are of main interest:

Expired COF/WOF

The policy wording of most insurance policies does not specifically refer to having a current COF/WOF, but rather having the vehicle in a safe condition. A COF is simply a good indicator that you are doing the right things to keep the vehicle safe.

The only exclusion to consider is where the vehicle owner was aware or should have been aware of an issue that has caused the insurance loss.

Expired driver license or endorsement

The policy wording generally provides cover for those drivers who have got a license that has expired, as long as the renewal of the license/endorsement doesn’t include a practical test.

With these explanations from Ian, it was generally accepted by the freight industry that these assurances did cover off most of the concerns.

Ian did say that there were a number of different policy wordings between the different insurance companies – but most were similar.

Therefore the association recommends that any members with concerns should check the wording on the a policy about these specific matters, if this is an issue for them.

It is disappointing that Waka Kotahi NZTA and the Ministry of Transport have not issued an exemption or extension for operators (as they did last year). But at least this explanation from the insurance industry of us some comfort.