NSW: Fair Trading Minister warns car buyers about hail sales

AAP General News (Australia)
04-19-1999
NSW: Fair Trading Minister warns car buyers about hail sales

SYDNEY, April 19 AAP - Car buyers should not be blinded by "hail sales" where they may save
up to $10,000 on hail-damaged cars, NSW Fair Trading Minister John Watkins warned today.

Some insurance companies may refuse to insure the damaged cars because they could not
estimate their value, Mr Watkins said.

Other insurers were wary about future claims in the case of an accident, where it would be
difficult to determine the pre-existing damage from the new.

"Don't be blinded by the savings of $5,000 or $10,000 on hail damaged cars," Mr Watkins
said.

"A saving may turn out to be a headache when you find that you cannot insure your car
properly.

"If the car doesn't have comprehensive coverage, the owner has no protection in the event
of damage or theft."

Mr Watkins urged consumers to contact their insurer before purchasing a car.

Under NSW law, anyone selling hail-damaged cars must tell the buyer about the damage and
have them sign an acknowledgement form.

Car dealers who failed to disclose the damage fully could face fines of up to $110,000, Mr
Watkins said.

AAP km/was

KEYWORD: HAILSTORM CARS

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