Car Insurance in New Zealand

Car Insurance in New Zealand

If you are looking into getting car insurance in New Zealand, you will want to consider all of the facts before making your decision. For instance, you don’t actually have to purchase car insurance in New Zealand, as it is not mandatory. However, if you get into a very bad accident and you don’t have insurance, the results can be terribly expensive. If you have a brand new or even newer model car, you could lose it completely if you cannot pay for the necessary repairs out of pocket. Consider the following when you are deciding whether car insurance NZ

Comprehensive Insurance

Comprehensive insurance is the highest level of car insurance in New Zealand that you can get. This type of coverage is perfect when you want to cover both your vehicle and any vehicles or property that may be damaged in an accident. The price for this insurance is higher but the rewards are much greater if you are in an accident. Comprehensive insurance covers any accidental damages not only to your personal vehicle, but to someone else’s property or vehicle. If you get into an accident, your insurance company will simply need you to pay a deductible and then they will cover the rest. Comprehensive coverage is a good idea when you own a car that is still owned by the bank or that you have a loan on, especially one that would cost thousands of dollars to repair even for the smallest accident.

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Third-Party Insurance

Third-party insurance is a good choice when you don’t want to pay a lot for car insurance in New Zealand but you still would like to have some type of coverage. Third-party insurance, also known as liability, will only cover the damages that are done to someone else’s vehicle or property if you are in an accident. It will not cover any damages that occur to your car or any other vehicle that you own. You will be responsible for any expenses sustained to your automobile because of the accident if you are at-fault. This is a type of car insurance in New Zealand that does not cost as much as comprehensive, but at least gives you coverage if you accidently hit someone else or their property with your car.

Choose the Right Excess for Your Needs

When you are looking for car insurance in New Zealand and you chose comprehensive, you’ll need to select the excess that you will pay when you are in an accident. This is also known as the deductible and is the contribution that you make to the cost of the claim. The higher your excess payment is towards your car insurance in New Zealand, the lower your monthly premiums will be. Just remember, you will need to pay the excess before work is done to your damaged car, so make sure it is an amount that you will be able to pay if an accident happens to occur in the future.

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