Explosion of New Car Brands Creates Insurance Headaches

The explosion of new car brands is creating a remarkable problem: repairs are often not possible at all, so even minor damage can see a vehicle written off as a total loss. Insurer Unive has flagged the issue and warns that coverage for such a car could be at risk.

Industry organizations such as ANWB and Bovag recognize these "start-up problems." The result is that claims costs - and therefore insurance premiums - go up.

Unive advises car buyers not to look only at price, range, safety, and equipment. The question of whether fast, good repairs are possible when something goes wrong should also weigh heavily in the decision. With new brands, parts may have to be shipped from far away, or only a handful of companies may be able to carry out a repair. Owners can also end up waiting much longer to get their car back after an accident.