In Aotearoa, many of us use cars to travel around our beautiful motu. They take us to supermarkets, to see loved ones, and to explore our great outdoors. Owning a car can be wonderful! However, they pose dangers and they can be expensive to run and repair if they are involved in an accident or loss.
While car insurance isn’t mandatory in New Zealand, like it is in other countries, there are many reasons why you should absolutely have it.
What are the Benefits of Car Insurance?
Anything can happen to your car, while on the road, or even parked outside your home. Car insurance protects you against sudden, unforeseen, and accidental damage or loss. If something happens to your car, or if your car is involved in the damage of another car, would you be able to fork out the cash for repair or replacement? Depending on what level of cover you choose, your provider can cover the theft or damage to your car following an accident, and help you cover the cost to repair someone else’s car or property if you are at fault.
If something happens to your car or you cause damage to someone else’s car, your policy can relieve you of the financial burden, and save your wallet from having to pay for repairs or replacement.
Insurance providers will also help you get back on the road faster by communicating with other insurers or parties involved to get things moving.
Levels of Coverage for Car Insurance
- Third party: The most basic level of car insurance coverage. This level protects you when a claim is made against you. If you cause damage to someone else’s vehicle or property, your insurance provider will cover the cost of repairs or replacement. This means that if you cause an accident while on the road, your wallet will be protected and you don’t have to fork out the money to repair the damage.
- Third party fire and theft: This next level of coverage generally covers everything that third party coverage does. It also gives you protection for fire and theft. If your car catches fire, or if it’s stolen, your insurance provider will cover the loss.
- Comprehensive: This is the most extensive level of coverage. Comprehensive insurance covers damage to your vehicle no matter who was at fault. So, even if you caused the accident, your insurance provider will cover the repairs or replacement for both you and the other party. For many Kiwis, this is the go-to choice of coverage because it offers the most protection and peace of mind that you won’t have to dig into your pocket if something happens.
Where Can I Find Cheap Car Insurance?
So, you’re ready to find a new car insurance policy. The best way to find the cheapest car insurance policy, no matter what level of coverage, is to compare. Jump on Money Compare to compare the different policies available to you. It’s easy to select filters such as the level of coverage, so you can compare options that best match your preferences.
Empower yourself to make a fully informed choice so you can find yourself the best deal for your needs, and avoid paying for more than you need to. This is the best way to save money! There are so many benefits to comparing your bills, including your insurance. Insurance comparison ensures you are keeping up to date with market trends and prices. Switching providers and policies keeps you away from loyalty tax and ensures you are getting the best deal.
Consider excess: Considering the excess can also help you lower your premium. When you purchase your policy, you’ll be asked to choose an excess. The higher the excess, the lower your premium will be. Remember, excess is the amount of money you will pay to have to make a claim on your insurance policy. Make sure that you will be able to comfortably pay that excess if you need to make a claim. Consider setting that money aside so that you have it in the event something unexpected happens.
Pay annually: Many insurance providers will offer a discount to those who pay for their premium annually.
