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save on car insuranceTips to Help You Save on Car Insurance

[dropcap type=”simple”]C[/dropcap]ar insurance is a very common form of insurance. Although it isn’t yet legally required to have car insurance, it is advised to have at least some form of auto insurance cover to protect you against significant loss in the event of an accident. In this section, you will learn various tips to help you obtain low cost auto insurance without compromising the quality of your coverage.
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  • Before purchasing a car, you should compare the difference in insurance costs. Car insurance premiums are usually based on a cars sticker price, overall safety record, the cost to repair it and the likelihood of the car being stolen.
  • Help reduce the risk of car theft. Many car insurance companies provide discounts for features that prevent or reduce the risk of injuries or theft. Install a car alarm and ask your insurance provider for a discount.
  • Ensure that you are not over-insured. Check all your policies, not just your car insurance. An example of over-insurance might be that your policy covers you for towing accidents, but your car doesn’t have a tow bar.
  • If you already have car insurance, reassess the value of your car annually and inform your insurance provider. There is no use paying premiums on the value of a new car if you have owned the car for several years. If you car is written off in an accident, your insurance company will only pay out the current book value according to the age of the car.
  • To help save money on insurance, maintain a healthy credit record. Insurance companies are increasingly using credit information to determine insurance premium costs. You can improve or maintain your credit history by paying your bills on time, keeping an eye on your credit history and correcting any errors you may find. In order to save on insurance or get cheaper insurance coverage, you should always keep your credit rating in check.
  • Negotiate, negotiate and negotiate. Insurance companies have been known to offer deals in order to win a customer’s business over the competition. If you want to stay with your current car insurance provider, inform them of quotes you have received for cheaper car insurance from other providers. Ask them to match your quote. They will generally comply to prevent you from moving your car insurance policy.
  • Ask you insurance company if they allow you to pay a higher insurance excess in the event of a car accident. This can reduce your car insurance premiums substantially. If you decide to choose this option, be sure you have money set aside to pay if you have a claim.


Discounts are another way to save money on insurance. There are four main types of insurance discounts:
i) Discounts for higher excess
ii) Senior citizen discounts
iii) No claims discounts
iv) Other insurance discounts

Discounts for Higher Excess

Insurance companies all have a minimum insurance charge. If you opt to pay a higher excess fee if or when an accident occurs, you may gain further insurance discounts. Just be sure that you can afford to pay the excess amount when the time comes.

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Senior Citizen Discounts

We all know that age is a major factor in assessing potential accident risk. Higher risk means higher car insurance premiums. Insurance companies know that older drivers are more experienced and have fewer accidents. This is why they have senior discounts. Ask your NZ insurance company whether you are eligible for a senior citizen discount.

No Claims Discount

Many insurance companies reward drivers who have a low number of insurance claims. Insurance companies realize that you are a safe driver and reward you with lower insurance premiums. Maintaining a safe driving record is an ideal way to receive low cost insurance.

Other Insurance Discounts

Ask your insurance provider if they offer low mileage discounts. Some insurance companies provide discounts for people that drive below the average miles allowed per year. This is another way to get cheaper insurance rates. Ask if your insurance supplier provides group discounts for insurance. Some insurance company employees receive budget insurance by qualifying for an insurance discount through their employer, clubs or business groups. You can sometimes reduce your premium by completing a defensive driving course.

New Zealand insurance companies will generally consider anything that will help reduce the risk of an insurance claim. Ask your provider whether they give discounts to customers that complete a defensive driving course.