New Zealand Car Insurance

Comprehensive car insurance is important if you own a car – it covers you if your car is in an accident and covers you if you cause an accident. As third party insurance is not compulsory in New Zealand, you cannot count on someone else’s insurance paying out if you are involved in an accident, even when you are not at fault.

Car Insurance Quote Considerations 

Insurance companies primarily take into consideration: 

• The age and experience of the driver
  
• The make and model of car
• Whether the car is alarmed or garaged
• Your location when quoting for car insurance

Most companies offer instant quotes online or over the phone, so it is important to check how much cover will cost on any car you are thinking of buying.

What to Look for In Your Car Insurance Policy 

Some things to look for when you are shopping around for car insurance are: 

• The sum you will receive if your car is written off or stolen
  
• Discounts for garaging your car securely or for security features on the car
• Legal liability cover (legal cover if you damage someone’s car or property)
• Excess – how much is it, and will you have to pay if the accident was not your fault
• No claims bonus – a discount that accumulates when you don’t claim on your insurance
• Emergency accommodation (if you are stranded if you are out of town when your car is damaged or stolen)
• Rental or substitute vehicle (after an accident or theft)
• Towing costs
• Fatality cover (generally a very limited form of life cover if you die in a car accident)
• Cover for drivers under 25
• Cover for your trailer (while attached to your vehicle).

Car Insurance – Comprehensive Cover

Comprehensive cover generally covers anyone who is driving your car with your permission, as long as they have a valid licence and they have not been refused similar insurance. If someone under 25 is likely to be driving your car, or if they have ever had their licence suspended, cancelled or endorsed, you need to check the level of cover they will be entitled to under your insurance. 

You will generally not be covered if you are doing anything illegal at the time of an accident. 

Cover for damage to your windscreen is generally an optional extra. 

If comprehensive insurance is beyond your budget, you can also arrange third party cover for your car. This typically will only cover your car if any accident was not your fault and if you identify who was at fault. Theft and fire insurance may be an optional extra with this kind of insurance. 

No Claims for Migrants 

If you are migrating to New Zealand and buying car insurance, make sure you ask your current insurance company for a "No Claims Certificate" when cancelling your policy, as the NZ insurer may honour this. 

This article was supplied by Broadbase International Ltd (www.broadbaseinternational.com). Information contained in this article is of a general nature and is not intended as a substitute for professional advice based on your individual circumstances. Disclosure statements are available on request and free of charge.