Motor Vehicle Insurance or car insurance is insurance to cover cars, trucks, and other vehicles. It is to protect you against losses incurred or damages as a result of an accident, and against any liability that could be incurred if in an accident.
Owning a car in New Zealand involves a number of risks. When a car accident occurs, people may be injured and vehicles (or other property) may be damaged. Damage, or loss, can also occur through theft, vandalism, or natural disasters. Motor vehicle insurance protects you against this risk. It is important to protect your vehicle and yourself against accidental damage, and any damage you may cause to another person or their car or property.
There are three main types vehicle insurance:
Comprehensive insurance – where you are fully covered for damage to your own vehicle and to the vehicle of the other party / parties.
Third party fire and theft – this covers you for damages caused by fire, and theft to your vehicle as well as ‘basic’ protection against damage or loss to another parties’ vehicle or property. Your vehicle is not covered if in an accident.
Third party insurance – this offers ‘basic’ protection against the damage or loss to another vehicle or party – your own vehicle is not covered.
Some points to consider when looking at car insurance:
- How is your vehicle valued – is it at the market rate?
- Do they have a “no claims” bonus that discounts the rate?
- What is the level of excess and what if this is increased?
- Who can drive, and the cost of additional drivers?
- What if a driver is under 25 years, how is this handled?
- Do you get a choice of, or to choose the repairer?
- What your new vehicle is a “total loss” – is it replaced or repaired?
- If your vehicle is off the road, do they provide a hire vehicle?
- If you use their recommended repairer, is this repair work guaranteed?
- Do you have to pay an excess if a windscreen or window is broken?