Whatever type of car you own, your car is probably a vital tool to get around day-to-day. Protecting your car with a suitable car insurance policy can help protect you if the unforeseen happens and your car is stolen, damaged or you are involved in an accident.
This guide will explain what you should consider to make an informed choice about the best car insurance policy for you.
Top things to know about car insurance cover in New Zealand
Car Insurance costs can vary widely depending on the type of policy you choose, and the provider you choose. Costs will also vary depending on the age and model of your car, so it’s worth taking some time to request some online quotes to make sure you’re not paying more than you should for your car insurance. We’ve outlined how to request a car insurance quote, information your insurer will look for, the main types of insurance cover, and some tips to reduce the cost of your car insurance.
Compare car insurance quotes with our top insurance partners
- At Money Compare we are here to help you make an informed choice about home insurance – we work with some of New Zealand’s top insurance companies.
- We recommend requesting quotes from more than one providers, so that you can compare the costs side-by-side. State Insurance, AMI Insurance and Cove are a great place to start.
- Requesting a quote online is fast and easy – it only takes around 10 minutes to collect two or three quotes.
- Switching insurers can help save you money – most insurance companies offer attractive deals for new customers.
- We recommend comparing insurance quotes and reviewing your policy every year to ensure the information in the policy is current, and that the cost remains competitive.
How to request a car insurance quote online
It’s easy to get started requesting a car insurance quote online. We recommend starting with State Insurance, AMI Car Insurance and Cove Insurance to get a good range of quotes. It will help to have the following detailed ready to get the most accurate quote possible:
- Vehicle license, or the make the make, age and model of your car
- Age of driver(s) and licence info
- Distance driven per year
- Whether the car is for private or business use
- Where the car will be store, eg: garage, car port, driveway or road
- Your accident and claims histoy
- How much you want to insure your car for
The main types of car insurance in New Zealand are:
- Comprehensive Car Insurance: covers you if your car is stolen or damaged in an accident. It also pays out to other people if your car damaged their vehicle or property. This is typically the most expensive policy available but also provides the most cover. Comprehensive Car Insurance is generally a good option if you want peace of mind, and if your car is expensive enough that you couldn’t afford to repair or replace it.
- Third Party Car insurance: is the most basic and cheapest form of car insurance. You are only covered for damage you may cause to a third party, but not for any damage to your own car. This is the best option if you own an older car, or a car with little value.
- Third Party, Fire & Theft Insurance: provides third party cover, and also covers you in the event of a fire, or if your car is stolen and needs replacing. This type of policy does not cover repairs to your car, even if you are not at fault for the car accident.
Tips to reduce the cost of your car insurance
- Shop around: if you want cheaper car insurance, it pays to shop around before you buy. Car insurance is a competitive industry, so there are some good deals around – but beware of insurers who trim policy benefits in order to offer cheaper premiums
- Check policy benefits – not just price: make sure your policy includes all the benefits that you need. Also, only add benefits that you need as these will increase the cost of your insurance.
- Choose a level of cover that meets your needs and matches your budget
- Increase your excess: This is the amount of money you have to pay when you make a claim, before the insurer covers the rest of the cost. Increasing your excess sometimes results in your premium being reduced.
- Pay annually: Paying for your policy annually instead of monthly, can work out cheaper. So it’s worth checking whether there is a price difference for paying annually.
- Ask about discounts for multiple policies: some insurers offer discounts for multiple policies with the same insurer (eg: car insurance or contents insurance), or for professionally installed security systems