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Car Insurance NZ Common FAQs
Understanding car insurance in NZ can be an overwhelming task. There are many common questions that individuals ask when it comes to this topic. We have compiled a list of these top questions about car insurance in NZ below and provided an answer to help you better understand. Let’s take a look below.
Are Monthly Or Annual Premiums Cheaper?
The simple answer is that the more you prepay for your car insurance NZ by Youi, the cheaper it will be. Many insurance companies offer monthly, quarterly, biannual, and annual premium options. When you opt for an annual car insurance NZ premium payment it will cost less than a quarterly payment.
This is simply due to the fact that the insurance company charges administrative fees to process your bill and payment each month. It’s easier for your car insurance NZ company to process one large payment each year than it is to handle processing smaller payments each month.
Does My Credit Score Affect My Car Insurance NZ Policy Rate?
Yes. Many insurance companies are using credit scores and history to determine rates for insurers. This is due to the statistical evidence showing those with a higher credit score tend to be involved in fewer claims than those with a lower score. Aim to improve your credit score to get the best rate available.
Can I Use My Favorite Auto Repair Shop To Fix My Damaged Vehicle?
Each car insurance NZ company has their own specified list of auto repair shops. Many of these shops cut a deal that allows the insurance company cheaper rates in exchange for them bringing the shop more regular business.
You should check with your car insurance NZ company to see if your favorite repair shop is on their list of approved vendors before scheduling any repairs. If you disregard the insurance company’s preferred vendors, it’s very likely you will have to pay for the repairs out of pocket.
Do I Need To Inform My Insurance Company Of A New Vehicle Purchase?
Yes. Your insurance coverage is specifically for the vehicle you set up with your insurance company. If you purchase another vehicle, you must get another car insurance NZ policy to cover the new vehicle. Realize that your insurance company will base your rate off of the type of vehicle that you need to be insured. Your rate for one car will vary from the rate of your other car.
Can I Get A Lower Premium?
As we spoke about earlier, the easiest way to reduce your premium is to prepay a lump sum amount. If you are unable to afford that amount of cash upfront, there are some other things you can do to decrease your car insurance NZ premium.
Installing safety equipment in your car can reduce your premium. Some examples include an alarm system and a fire extinguisher. If you have been accident-free for over a year, call your insurance company and ask for a discount on your rate. You should always opt for e-statements to avoid any monthly surcharges for a paper statement.
How Car Insurance In NZ Works
In the country of New Zealand, it’s no mandatory to have car insurance. With that being said, car insurance NZ is a great idea to consider as it will protect you from a major financial loss in the event that you are found liable for an auto accident. We highly recommend reading through the entire article below to learn more about car insurance in NZ. This will ensure you chose the right policy for your needs without overpaying.
Comprehensive Vs. Third Party
There are two main types of car insurance NZ that are offered. Comprehensive coverage is the most expensive but provides the most amount of coverage. Under a comprehensive program, if you are found liable for an accident, the insurance company will pay for the damages to your vehicle and the other vehicles involved.
Third party insurance is the cheaper option that offers less coverage. This car insurance NZ policy covers damages to other vehicles that are deemed your fault. This doesn’t cover damage to your vehicle as a result of an accident that you are at fault for. Most insurance providers offer an optional add-on of fire and theft to third party insurance. If you agree to this add-on for a higher monthly price, it will cover your vehicle if it is damaged by fire or stolen.
What Is Excess?
Excess, also known as a deductible, is specified in each car insurance NZ policy. This is the amount of money the policyholder must pay out before the insurance coverage takes over. For example, let’s assume you have an NZ$500 excess in your car insurance NZ policy. In the event of an accident where the damages are equal to NZ$2000, you would be responsible for paying the NZ$500 before the insurance company would cover the remaining NZ$1500 car insurance NZ https://www.youi.co.nz/car-insurance-nz
Paying close attention to the excess amount specified in your car insurance NZ policy is important. The higher your excess amount, typically the cheaper your premium payment is. In contrast, the lower your excess amount, the higher your monthly premium.
What Should You Do In The Event Of An Accident?
If you are involved in an auto accident in the country of New Zealand you should contact 111 for emergency assistance. Be sure to get all the contact information for everyone involved, the emergency personnel, and any witnesses to the accident. Get the information for the other vehicles involved, including their registration license number.
The next thing you want to do is to contact your car insurance NZ company. Explain to them what has happened and start the claim process. It’s very likely your car insurance NZ company will want you to give a detailed explanation of what happened during the accident and they will request all the information that you collected at the scene of the accident.
Now that you better understand car insurance in NZ, it’s time to start comparing quotes. Be sure you are comparing quotes for the same type of insurance policy for the most accurate comparison.