Cheaper Car Insurance

Car Insurance Discounts in New Zealand

If you are thinking of renewing your car insurance policy, it pays to shop around and find get yourself the best deal to get cheaper car insurance. There are many car insurance discounts offered in New Zealand dependent on your circumstances, read on to find out more.

• General Insurance

Are you looking for ways to find cheaper car insurance? There are many ways you can save on your car insurance and find cheap vehicle insurance in New Zealand.

Go Shopping
The first key to finding cheaper car insurance is to shop around for a better deal. Find out all of the finer details of your current car insurance plan: your weekly or monthly premiums, your excess, and any extras such as no-excess glass repairs, rental car provisions, and so on. At the same time, get the specifics on your car: make, model, age, mileage.

Then, ring around three or four insurance providers, and ask for a written quote, based on all of the above. Let them know you will use this quote to compare it with several others - it's a great starting point for getting the cheapest quote from the get-go.

There are also several aspects which may apply to you which could give you cheaper car insurance:

High Excess Discounts
Do you have the money available, if necessary, to pay a higher excess for car damage? If you've got a good record of driving and could afford to foot a higher bill in the unlikely event that you'll have an accident, you should be able to get a much lower premium than for a plan which has a low excess. Low excess policies however, are the best option for those who do not have backup for a big car bill without notice.

No Claims Discounts
If you have gone for several years without a car insurance claim, you should be eligible for a significant No Claims discount, which could be as much as 66% in New Zealand.

Age-related Discounts
Most car insurance providers offer discounts for older drivers, with the standard threshold being 60 years of age. Often discounts for older drivers can save you up to 20% more than for those under the threshold. Alternatively, if you haven't reached the required age, many providers offer cheaper car insurance if you agree not to let anybody under 25 drive your car, as these are seen at the most at-risk drivers.

Additional Discounts
If you have a car alarm, and will be kept in a locked garage, you may be able to get additional (albeit smaller) discounts on top of the above discounts. Also make sure to mention situational changes - if you've moved to a safer city or region (i.e. from a large city to a smaller town), or if you've jumped an age bracket - since you took on your original insurance policy.

Understanding Your Car's Value
Before committing to a car insurance plan, make sure you understand that you have options in regards to the value of your car. This is essential in the event that your car is in a serious accident and is damaged beyond repair - thus requiring a full pay out.

Market Value
Most car insurance providers offer Market Value policies, meaning their assessor will determine the current market value of your car, dependent on age, mileage, market conditions and so on.

You will then be paid this non-negotiable amount of money should your car be written off. This can often lead to disappointment as most people will place higher value on their car than the assessor will - particularly if they have put additional work, modifications or upgrades to the car.

On the other hand, if your car is valued higher than its market value, you will be paying more in premiums and are likely to have higher excesses, which is unnecessary.

For cheaper car insurance with a Market Value policy, make sure your car depreciation reflects your premium, meaning the longer you keep your car and stick with your policy, the cheaper your regular car insurance payments become.

Agreed Value
Coming to an agreement on your car's value with an insurance provider is an increasingly popular option for many people in New Zealand.

When you commit to a car insurance policy, you will agree with the provider on what you believe the car is worth, determinate on market value and upgrades undertaken. This is often a great option for car owners with classic cars who have performed restorations on their vehicles.

Your insurer will continue to review this value, which, if you have an appreciating classic automobile, will work in your favour. While this won't give you cheaper car insurance premiums, you will gain added security in knowing that should your car be significantly damaged, you would be able to replace it with the same quality vehicle.

Making a Choice
Once you have your quotes and have put forth every factor you can which may get you a discount; put your haggling skills to work. All car insurance quotes are malleable, as long as you remember that you are a customer, and the insurance provider needs your business.

Provide each company with the other companies' quote figures and terms, and ask them to better it for your custom. Obviously, the better your credit and insurance history, the more power you will yield over insurance companies.

When you have your final quotes, sit down with them and assess the benefits of each, and work out which would cost you the least money in several scenarios: should you have an accident and damage your car, an accident damaging your car and another car, damaging just another car, and so on.

You want to find a good medium the cover you for all situations, and it may be worth paying a little more in event of damaging just your own car to keep the price of damaging someone else's car down.

Choosing the right excess is important - standard excess for drivers over 25 will be around $250, and if someone else is driving your car (and is on your policy) and damages it, they are likely to pay $400+. For drivers under 25, excesses are much higher, especially if the insured cars have turbo engines and are highly desirable. Excesses can exceed $2000 per claim in these cases.

Looking for more information on car insurance? Check out the NZS.com directory.

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Motoring images from Flickr: Light Skies, Traffic Lights and Motorway.