Learn About 4 of the Most Popular Types of Car Insurance Polices Available in NZ
There are four main types of car insurance in New Zealand although several companies provide specialised auto insurance that covers classic, exotic and racing cars. The main types of car insurance sold in NZ are:
- Third party fire and theft
- Third party car
- Specialised car
Comprehensive Car Insurance
Comprehensive car insurance is typically the most expensive insurance available. It provides complete coverage for the policyholder in the event of an accident. This type of policy will pay for any damages caused to your vehicle and the other person’s vehicle or property if you were at fault. A comprehensive plan should also include cover for a vehicle fire or theft so make sure you compare between at least two providers. If it is affordable, comprehensive car insurance is recommended and often compulsory — if the car is financed in any way. If you’re considering comprehensive insurance, follow our simple tips listed within the Car Insurance Savings section to reduce the monthly premium.
Third Party Fire and Theft Car Insurance
Third party fire and theft car insurance covers you in the event of a car fire, if your car is stolen and needs replacing, or repairs for any damage caused to a third party. If you are not at fault for the car accident, no matter how extensive the damage to your car, the insurer will not pay. The insurance company who insured the driver at fault must compensate you for your loss. Third party car insurance is very popular in New Zealand. The premiums are generally less than comprehensive car insurance premiums but still provide proper cover should an accident occur. Learn more about your rights when buying insurance here.
Third Party Car Insurance
This is the basic and cheapest form of car insurance. With third party car insurance, you are only insured for the damage you cause to a third party. This is the best form of car insurance for older cars or cars with little value.
Specialised Car Insurance
Specialised car insurance is slightly different to third party insurance. If your car is more than 25 years old, this insurance policy will apply. You will receive all the benefits of a comprehensive car insurance policy with the only drawback being that you must stay under a certain amount of predetermined yearly mileage. If you can prove that you have another car that you use regularly, this may help you get a lower quote for your specialised car insurance.
Everyone who owns a car should have some form of coverage. Regardless whether it is third party coverage or comprehensive car insurance, having insurance will reduce the financial loss when an accident occurs. Find out how to reduce your car insurance premiums by visiting our tips to save on insurance section.