Car Insurance

New Zealand Car Insurance

Car insurance in New Zealand protects both you, and your vehicle, from unexpected loss or damage. This loss may come in the form of damage to not only your own vehicle, but also to the vehicles and property of other parties.

• General Insurance
• Automotive Dealers

There are several options for auto insurance in New Zealand, and many different New Zealand car insurance providers available. Let's take a look at the alternatives available and explain how they work.

NZ Car Insurance
Unlike many other countries, car insurance is not compulsory in New Zealand. The only component of compulsory insurance is the portion a motorist pays as part of their registration fees. This covers any injury or medical claims if you are at fault in accident, but doesn't cover any damage to vehicles or property. The debate to make third party insurance compulsory in New Zealand has been going on for some time now, with proponents arguing not only its economic benefits but benefits to road safety. A major argument of supporters is that young drivers with powerful modified vehicles would not be able to afford the insurance premiums, and therefore fewer high risk drivers would be on the road. However, legislation remains unchanged and third party car insurance is not compulsory in New Zealand.

Types of Car Insurance
Apart from the small compulsory component mentioned above, there are three types of car insurance policy available in New Zealand:

1. Third party property

This covers you as the motorist against damage to other party's property and/or vehicles if an accident occurs in which you are at fault. This is the cheapest form of car insurance.

2. Third party fire and theft

This covers theft of your vehicle and damage by fire in addition to third party property damage.

3. Comprehensive or full

This covers the motorist against accidental loss or damage to their own vehicle, regardless of fault, and also includes third party fire and theft. Many comprehensive policies also include benefits like paying of towing costs from the scene of an accident, or providing for a rental car while the motorists vehicle is being repaired. Policies vary widely, so it pays to read the fine print and know what you're signing up for. Comprehensive insurance is generally compulsory on vehicles that are bought under car finance and have money owing on them.

Disclosure
When looking to purchase car insurance in New Zealand, it is important to make a full disclosure to the insurance company. This means the insurance company will want to know a lot of information about you, your driving history and your vehicle, in order to calculate your level of risk and appropriate premiums. They may ask questions such as:

• Will your vehicle be parked in a garage?
• Does your car have an alarm?
• Does your vehicle have any modifications?
• Do you have traffic offences against your name?
• Have you been disqualified from driving?
• Do you have any criminal convictions?
• Who will be driving the vehicle?
• What previous car insurance claims have you made?

These factors and others will be taken into account. The best way to avoid pain when dealing with a New Zealand car insurance company is to be open and honest with this disclosure, and inform the insurer of any changes in your situation. Even a minor change, such as adding tinted windows or an expensive car stereo system, may cause grief when a claim is made, if the insurance company was not aware of these alterations.

Rental Car Insurance
In New Zealand rental car insurance is available and varies according to the policies of the rental car dealer. Most travellers will be comprehensively covered. However, check to see if windscreens, tyres, stone chips and the like are included in the policy. Don't sign up to any rental agreement that doesn't include insurance. Find a quality New Zealand rental car provider.

Shopping for Car Insurance
As with most consumer decisions in New Zealand, it pays to shop around and take a look at your options when it comes to car insurance. Cheap car insurance is available; however it may not be the most appropriate cover for your specific situation. Most companies will give car insurance quotes, normally for free, so get on the phone and call up several companies for a comparison. Alternatively, the majority of insurers also offer car insurance online, so get on the Web and start clicking to find NZ car insurance. If you stick with one insurance company for all the types of insurance you require, discounts are normally given for package deals. Raising the excess on your policies also will reduce the premiums paid.

Getting auto insurance in New Zealand should not be a chore; it really is a simple process if you are open and honest with your chosen insurance provider. Also it pays to check before purchasing that new vehicle from an auto dealer that you can afford to pay the insurance premiums. Happy motoring!

Looking for more information? Find New Zealand car insurance in the NZS.com directory.

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Motoring images from Flickr: Car Accident, Traffic Lights and Motorway.