Why Do You Need It?
When having your vehicle (car or motorbike) transported, it is always a risk that some damage might occur to it while it is in transit. You are provided with some protection under the Carriage of Goods Act 1979, which governs carriers of all goods, including vehicles.
However, it's worth noting that the Carriage of Goods Act limits the carriers liability to just $2,000 (including GST). So, if the damage caused to your car or bike is greater than $2,000, then you'll have to pay the rest. Some carriers also write their contracts to be "at owner's risk" - if you sign one of these contracts, this means that they are not liable at all for any damage caused to your vehicle while it is in their care. In these circumstances, you would then have to bear the full cost of repairing any damage.
Marine General Average
While your vehicle is in transit, if it is carried across water (for example, between the North and South Islands), then the maritime law of general averages applies. Under this law, all parties in a sea venture proportionally share any losses resulting from a voluntary sacrifice in an emergency of part of the ship or it's cargo, in order to save the whole. This can mean that even if your car or motorbike arrives safe and sound, you could still have to pay a proportion of another parties goods which did not reach their destination. While uncommon, there still are maritime incidents in New Zealand waters - the MV Rena for example, had vehicles on board when it ran aground on the Astrolabe Reef just outside Tauranga in 2011.
