How to Make a Water in Oil Insurance Claim in New Zealand

Is Water in Oil Covered by Insurance?

It depends on the cause. Flood damage to vehicles is covered by comprehensive policies from all major New Zealand insurers — AMI, AA Insurance, State, Tower, Vero, and FMG. Sudden mechanical failure causing coolant to enter oil is also covered under many comprehensive policies, subject to the policy wording. Wear and tear or deferred maintenance is not covered.

What Your Insurer Needs

To process your claim, your insurer's assessor will require: a written technical report confirming the contamination type and source; photographic evidence of the oil condition; documentation of the incident (date, location, circumstances); and a certified technician's assessment. EEK Mechanical provides all of this in a single Oil Contamination Report.

The Critical Rule: Don't Start the Engine

If you attempt to start a flooded engine and the insurer's assessor finds evidence of hydrolocking damage, your claim may be denied. Most policies contain an exclusion for damage caused by operating the vehicle in a known damaged state. This is why calling us before attempting to start the vehicle is so important — we document the pre-start state on your behalf.

Step by Step

1. Keep the engine off. 2. Call EEK Mechanical on 0800 769 000. 3. We dispatch a tow truck to collect your vehicle and take it to a certified workshop. 4. We provide a written Oil Contamination Report. 5. Call your insurer and report the claim — send them our report. 6. Assessor reviews and approves. Most straightforward flood claims are approved within 3-5 business days with proper documentation.