Buying a car doesn’t stop as soon as you drive away from the dealership - you need to protect your investment. People make mistakes and accidents can happen any time of the day. With car insurance, you’re protected from having to fork out thousands of dollars to fix any damages to yours or someone else’s car or even property like fences.
Here we’ve pulled together everything you need to know with our guide to car insurance in New Zealand, so you can drive with confidence that should something happen you have the right cover for your situation.
With the number of insurance companies out there, finding the right one to suit your needs is the first step to getting your vehicle insured. Start by doing some research, shop around and put together a list of all the insurance providers.
Talk to your family and friends to find out which insurance company they’re with - why they chose them, what the benefits are and if they offer a good price.
Ask the dealership you are buying the car from if the manufacturer offers insurance plans such as Suzuki Insurance. If you are financing the car, you may be able to include the cost of insurance within your regular finance payments.
Narrow down your list to at least 3 providers you like. Don’t pick based solely on price. Check out their various policies, the features they include, and request a quote.
See if any offer discounts for bundling your home and contents with them, and check out the terms and conditions so that you’re fully aware of what you’re paying for.
A comprehensive policy covers your car if it gets stolen or damaged in an accident and pays out whoever’s car or property might have been affected by your car - with add-ons like roadside assistance. This is generally the most expensive option as it pays out for the widest range of situations.
Under Suzuki’s comprehensive motor vehicle insurance, your new car will be replaced with a brand new vehicle of the same kind, if it is stolen or damaged beyond repair during the first 3 years. If it is able to be repaired, then only genuine Suzuki parts are used in the process, ensuring your car continues to meet any warranty conditions and stays in perfect running order.
With a third party policy, your provider will settle a payout for the car or property damaged by you - except for your car. Effectively, if your car is stolen or gets into an accident where you are at fault, you’ll have to pay out of your own pocket to fix or replace it.
If someone else hits your car and admits it was their fault, their insurance provider should cover the cost of repairs to your car if you have third party insurance. If the person who admitted fault doesn’t have insurance, then your insurer may chase compensation on your behalf in some cases.
A third party, fire & theft policy is very similar to third party insurance with a bonus that you’ll be able to make a claim if your car is stolen or catches on fire.
Add-ons:
As well as standard comprehensive policies, you can buy extra cover, e.g. roadside assistance, no excess for replacing a damaged windscreen. Before adding extra costs to your premium, ask yourself if they're in your budget and if you really need added protection.
Mechanical breakdown insurance is suitable if your car is no longer covered by the manufacturer's warranty. It covers the potentially expensive costs of sudden and unforeseen mechanical or electrical breakdowns.
If you are financing your car, then payment protection insurance can cover payments for certain situations such as disablement, hospitalisation, or redundancy and if you are diagnosed with a terminal illness or die, then the outstanding amount is paid.
The value of your car insurance payout may be significantly less than the outstanding balance of an existing credit contract on your car. With guaranteed asset protection, you can select cover of between $5,000-$20,000 to cover the shortfall.
Car insurance policies come with a whole bunch of strict guidelines and conditions to abide by, so that you are eligible to make a claim. You really don’t want to be paying a monthly premium for your insurance, only to not be able to reap its benefits.
It’s tough to put a concrete figure on how much car insurance will cost you. There are a number of factors that your insurance provider will look at to determine your risk of having an accident.
Market Value – It’s the value your car is insured for based on the market’s valuation right before an accident.
Agreed Value – This is the value your car is insured for based on the agreement between you and your insurance provider when you took out the policy and every time you renew it.
Your excess is the agreed amount that you have to pay if your car gets damaged or if you damage someone’s car. This money goes towards the costs of the damage with your insurance provider covering the rest of the cost on your behalf. Apart from some windscreen cover, you will pay an excess no matter which policy or cover type you have.
You can choose how much excess to pay when you set up your policy, and increasing the excess does lower your premium. However, it pays to think about how easy it would be to pay for the higher amount in one go at the time.
Finding the right insurance provider and policy can be hard work, especially with all the jargon - but having a plan in place will mean you are better prepared to deal with it if the unthinkable happens.
If you’re on the hunt for a new car, but not sure where to start or what to look for in one, download our Complete Guide to Buying a New Car today!