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car_insurnace Frequently Asked Questions About Car Insurance

[dropcap type=”simple”]M[/dropcap]any New Zealander’s know that car insurance protects against significant financial loss in the event of an accident. However, many kiwis are confused by their policies and rely on the honesty of the provider to include sufficient cover expected in a car insurance policy. To make the process easier, we’ve compiled a list called car insurance FAQ – a list of frequently asked questions about car insurance:

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[toggle title=”Is it cheaper to pay for premiums on a monthly basis?“]

Paying your car insurance premium on a monthly basis may be easier on your personal cash flow but with each monthly bill comes an added administrative fees for the insurance company. This is reflected in the overall cost of your premium. The monthly fee may sound good but if you add them up, the final cost will be higher than if you choose to pay quarterly or annually. Try and pay your premiums annually as it will save you money in the long run.


[toggle title=”How can I qualify for car insurance with lower premiums?“]

If you can prove that you were not involved in any traffic accidents in the past and that you have a safe driving record, you could be eligible for lower premiums. There are other ways to reduce your car insurance premiums as well. Visit our save on car insurance section to find out more.


[toggle title=”Can my credit history have an impact on whether I receive lower car insurance rates?“]

The better your credit rating is, the more likely it is that the insurer will offer you lower car insurance premiums.


[toggle title=”If I purchase a new motorcycle or car, do I need to inform my auto insurance company?“]

Yes. If you do not purchase new car insurance at the time of buying the car, your new car will not be covered. If your car is financed, it is often a requirement to carry comprehensive car insurance or at the very least, third party fire and theft car insurance.


[toggle title=”Can I select my own favorite body shop to repair my car in the event of an accident?“]

Yes but by doing so, you may be responsible for payment of the repairs. Car insurance companies often have a list of approved body shops where you are allowed to have your car repaired. This is to reduce fraudulent activity.


[toggle title=”What will happen if I am involved in an accident with an uninsured driver?“]

Normally, NZ car insurance companies have a clause in their insurance policies that will cover you in this situation. Check your policy carefully when signing up.


[toggle title=”What items are considered “accessories” in a motor vehicle policy?“]

Accessories are additions to the car that are not considered to be a necessity for the car to operate. This includes tow bars, car seats, radios, CDs, etc.


If you have other insurance questions that we haven’t answered above in our car insurance FAQ section, contact an insurance representative using the search form at the top of this page or, via our contact page. It’s quick, it’s easy, it’s anonymous and it’s free!

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[testimonial name=”Isreal Hartley” job_title=”Author” company=”My Insurance Guide” size=”small” type=”bubble”]

Isreal is passionate about finance, online marketing, travel and helping others increase their knowledge. My Insurance Guide was started over five years ago is one of the first insurance resources available online, free for all Kiwis to access.