There are four main types of car insurance in New Zealand.In addition to these, some car insurance companies provide specialised insurance policies that cover classic cars, exotic cars, and racing cars. The main types of insurance are:
- Third party fire and theft car insurance
- Third party car insurance
- Specialised car insurance
- Comprehensive car Insurance
Comprehensive Car Insurance
Comprehensive car insurance is typically the most expensive car insurance available. It provides complete coverage for the policy-holder in the event of an accident. Comprehensive car insurance will pay for any damages caused to your vehicle and the other person’s vehicle or property, if you were at fault. Comprehensive insurance also provides coverage for vehicle fire and theft.
If it is affordable, comprehensive car insurance is recommended. Find out how you can save on your car insurance in our save on car insurance section.
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 poplar in New Zealand.The premiums are generally less than comprehensive car insurance premiums but still provide proper coverage should an accident occur.
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.
Specisalised Car Insurance
Specialised car insurance is slightly different than third party car insurance. If your car is over 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, which 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 car insurance 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 low cost car insurance section. |
