In many countries, car insurance is mandatory. But that is not the case here in Aotearoa. However, it’s important that you do invest in car insurance if you own a vehicle and drive. Car insurance protects you in the event of something unexpected happening.
If you are on the road, there is a risk of getting into an accident. Car insurance makes an already distressing situation that little bit more manageable, helping to protect your wallet. Generally, there are three different types of car insurance:
It’s important to understand what each tier of car insurance generally covers so you can make an informed choice about which one is best for you.
Third Party
The most basic tier of car insurance, third party protects you when a claim is made against you. If you cause damage to someone else’s car or property, your insurance provider will cover the cost of repairs if a claim is filed against you. This means that, if an accident happens, you will be protected from having to fork out a ton of money, or having to go into debt to cover the damage.
Third Party Fire and Theft
This is the next tier from third party. Generally, this type of insurance will cover the cost of damage you make to other’s vehicles and properties. It will also cover damage from fire and theft. So if your car is stolen, or catches on fire, your insurance provider will help cover this cost. This protects your wallet in the instance of unexpectedly losing your vehicle.
Comprehensive
The most extensive insurance, comprehensive cover protects your vehicle in the case of damage, no matter who is at fault. So, even if you are at fault for an accident, your insurance provider will cover the cost of damage to your vehicle and the other party’s vehicle. For many Kiwis, this is the go-to choice, because it means they can drive around our beautiful motu knowing that, if an accident happens, their wallet is protected.
Comprehensive insurance ensures you don’t have the financial burden of repairing or replacing your vehicle, so you can get back on the road in no time.
As comprehensive insurance has the most benefits, it is generally the most expensive. You can jump on Monday Compare to find the cheapest comprehensive car insurance available to you.
Is Comprehensive Car Insurance Worth It?
Consider Excess
Whenever you purchase car insurance, as with any other type of insurance, you can choose to have an excess, meaning you pay less on your premium. This can be a great way to lower the cost of month-to-month insurance payments. But it does mean that, if you need to file a claim, you will have to pay this excess.
What is excess? Excess is the amount of money you will pay when making a claim on your insurance. If you get into an accident and wish to make a claim, you will need to pay this excess in order to have your claim processed by your insurance provider. The higher the excess, the lower your premiums, or regular insurance payments.
It might be a good idea to put some money aside, ready to go if you ever need to make a claim and pay your excess. That way, you don’t have to stress about paying it when you need that claim to be processed!
Compare Car Insurance
There are plenty of car insurance providers on the market. Not all car policies are made the same. It’s important to compare the ones available to you. Jump on Money Compare and leverage our comparison platform to compare different car insurance policies. Select filters to compare the tier or insurance that you are most interested in. Remember, policies will also vary depending on your type of coverage, age, the type of driver’s license you have, the vehicle, how much you are willing to pay to insure the car, and even where you live.
Money Compare empowers you to compare car insurance policies side-by-side so you can make a fully informed choice, and find the cheapest policy for your needs. You can also chat to our comparison consultants if you would like some help getting the right policy. Make a free call to chat to them for bias-free advice on 0508 226672.
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