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.