New cars stolen from dealerships — even during test drives?! Experts share security advice to leave thieves no opening

Thefts from New Zealand car dealerships are not uncommon, and buyers often complain of new cars being damaged or stolen before they can take delivery. Will insurance cover these vehicle thefts or property losses, and how can dealerships prevent them? We interviewed Kelvin Ho and Ivan Hew, insurance advisers with more than a decade of industry experience at well-known New Zealand insurance brokerage Rothbury, to share professional knowledge and advice on protecting dealerships and car owners.

Chinese car dealership owners who have moved to New Zealand often believe the country is safe and its people honest, leading them to lower their guard on risk management and security. This misconception can lead to insurers declining claims or increasing premiums.

 

Kelvin and Ivan remind Chinese dealership owners:

• When buying insurance, read the policy terms carefully and make sure you understand the items and circumstances excluded from cover.
• Communicate openly and thoroughly with your insurance broker. Provide complete, accurate information so they can understand your circumstances, offer professional advice tailored to your needs, and develop a personalised insurance solution.
• Buying insurance does not mean everything is taken care of. Notify your broker promptly of any changes at your dealership, vehicle repairs or replacement parts.
• Even after buying insurance, check that appropriate security measures and proper procedures are in place. Otherwise, you risk having a claim declined.

 

When working with Chinese dealership owners, Kelvin and Ivan repeatedly ask whether appropriate security is in place and develop the most suitable insurance solution. However, many owners dismiss risk management, maintain security measures in name only, and fail to follow proper test-drive and sales procedures. This can increase premiums and lead to claims being declined — a false economy with potentially substantial consequences.

 

Kelvin and Ivan shared several key security measures and day-to-day risk management recommendations for dealerships:

• All vehicles should be stored indoors.
• The yard should have perimeter bollards or be fully enclosed by fencing or electric fencing with a locked gate.
• Buildings should have alarms, whether audible alarms, systems owners can monitor on their phones, or professional security monitoring systems.
• During business hours, vehicle keys should be kept in a locked office drawer or cabinet, or in a locked safe.
• Outside business hours, vehicle keys should be kept in a locked safe or off site, taken home in a key bag.
• Other security options include security guards, guard dogs or a responsible person stationed on site.                        

If you have not yet purchased dealership insurance or are considering changing insurers, Kelvin and Ivan can explain Rothbury’s YardGuard insurance package, designed specifically for dealerships. It offers comprehensive protection covering stock vehicles, property damage to the yard, equipment and stock, business interruption, public liability, statutory liability and employers’ liability.

 

A helpful reminder

After purchasing insurance, pay particular attention to the following:

• Never leave keys in an unattended vehicle. See above for the correct way to store vehicle keys.
• Ensure all available security measures are in place and remain activated outside business hours(set alarms, secure all bollards in position, and lock all security doors and gates).
• Test drives: accompany the driver, or verify their driver licence and retain a copy or photograph.
  (If these precautions are taken for a test drive, a stolen vehicle can still be covered, subject to an excess. If a staff member accompanies the test drive, the excess is waived.)
  Standard procedure should be for staff to record the driver’s full name, address, contact phone number and eyesight record, and copy their driver licence before releasing a vehicle for a test drive. Drivers with an international or overseas licence must provide a copy of their passport, their overseas licence and a licence translation.

 

Meet the experts

 

Kelvin Ho has worked in insurance for nearly ten years and joined Rothbury two years ago as a commercial insurance broker. His extensive underwriting experience helps clients assess risks and find the most suitable insurance solutions. Kelvin values strong, trusting client relationships and works diligently to ensure clients understand how their insurance protects their business, helping them prepare for the unexpected.

 

Ivan Hew began working in insurance in 2009, serving as a financial adviser for general and life insurance in Malaysia. After moving to New Zealand, he joined AMI Insurance in 2015, handling direct sales of personal insurance products focused on home, contents and vehicle cover. He later worked at IAG, specialising in commercial insurance for small and medium-sized businesses, with expertise in construction, commercial assets, commercial liability and motor vehicles. Drawing on his underwriting and claims experience with insurers, Ivan provides clients with professional risk management advice and support.

 

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Disclaimer

The examples cited and all insurance-related content in this article are provided for reference only.
Always consult a professional insurance broker about your specific insurance arrangements.
YIJU and Rothbury accept no liability.