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.