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Our Guide to Warranties & Car Insurance in NZ

Written by Team Suzuki | 18/01/2021 9:17:07 PM

Buying a new car can be an expensive, complicated, and down-right intimidating affair. There are a lot of things to consider with two important considerations that are often overlooked or left to the last minute being insurance and warranties.

So why are they so important? Simply put, these two are a sure-fire way to ensure that you’re covered if things go wrong, note: Murphy’s law. In the case of an accident or a mechanical fault, having reliable insurance and a warranty you can depend on will help you eliminate a lot of stress and will likely save you money.

Warranties and car insurance may seem convoluted. Fear not, this guide will take you through how to ensure you get the insurance right for you and your car and you understand the benefits of a new car warranty.

Car Insurance

It’s crucial to know how insurance works in New Zealand before you make any decisions. Thankfully, it’s easier to understand than you might think.

Here are the common types of car insurance and another couple related to financing that you might not have thought of:

3rd Party Car Insurance

This type of insurance covers you if you damage someone else’s car or property in the result of an accident and is generally the cheapest in terms of ongoing cost.

However be aware, it does not cover you for any damage to your car. As this policy offers only partial protection, choosing it means you need to be sure that you’re willing to face the financial consequences if something happens that you’re not covered for.

If you choose to pay off your new car, the finance company does not generally accept 3rd party insurance, so you may have to consider other options.

Comprehensive Car Insurance

If it’s security and complete protection you’re looking for, this is your best option. Comprehensive car insurance is typically more expensive than 3rd party insurance as it protects you from a great deal more. It covers you if your car gets stolen or if you incur damage to your vehicle. Like 3rd party insurance, comprehensive insurance also pays for any damage to the car or property of others that may be caused by your vehicle.

The price of your insurance plan will likely be based on several factors such as your age, crash history, license class, and the type of vehicle you’re trying to insure and where you’ll be parking it. These things affect the price for a reason, so it’s important to think rationally about what car-related issues you’re likely to face in the future and come up with a realistic plan to suit.

If you are considering a new vehicle there are sometimes branded insurance options that provide additional benefits personalised for your vehicle. For example, if you purchase comprehensive insurance with Suzuki Insurance your Suzuki vehicle will be replaced with a brand new equivalent model, should it be stolen or damaged beyond repair during the first 36 months of ownership. Plus they will only use genuine Suzuki parts to repair your new Suzuki if it is damaged in an accident and is repairable.

Mechanical Breakdown Insurance

Available for used or new cars not covered under the manufacturer’s warranty, mechanical breakdown insurance provides protection against unexpected and expensive repairs. Generally it also includes roadside assistance, which can come in handy when you are stuck on the side of the road and you aren’t sure why your car is not working.

Your car will need to be regularly serviced and maintained in good working condition. While it doesn’t cover damage to other vehicles or property, it is a good option when you want to cover the possibility of costly mechanical issues for a fixed amount.

Payment Protection Insurance

The main risk with having to finance a car is if something happens to your ability to pay it back. Payment protection insurance helps if your financial situation is affected by an unplanned event such as, a terminal illness, disability, or redundancy.

Depending on your circumstances, the insurer will make payments to your finance company while you get back on your feet, protecting your household income for other purposes as well as your credit rating.

Guaranteed Asset Protection

If you’re still paying off your car loan and your car gets written off, it could be a financial strain to have to pay your old loan as well as trying to finance a new car. Guaranteed asset protection is a type of insurance that covers any shortfall when your vehicle is deemed a total loss and your insurance payout may be significantly less than the outstanding balance of an existing credit contract. Taken out when you purchase the car with finance, it can help protect you financially and get you back on the road again quickly.

Never be afraid to ask for help if you’re not sure what kind of insurance is right for you. This can be a complex decision to make, and your local Suzuki dealership can make it easier by setting up an insurance plan that works for you. You can arrange insurance easily and directly with your Suzuki dealer, enabling immediate drive away cover.

Plus insurance premiums can also be included in your vehicle credit contract with Suzuki Finance making it easier on your budget. For additional information, you can learn more about Suzuki Insurance here.

Car Warranties

A car warranty (or written guarantee) protects you in the event of product failure, so if your new car or any of its parts are defective, you’ll be covered at no expense. While it doesn’t cover fair wear and tear like replacing worn tyres or wiper blades, it does cover any manufacturing faults meaning less time worrying about your car and more time enjoying it.

Here are the main types of warranties commonly found in New Zealand.

Manufacturer’s New Car Warranty

Buying a new car from a dealership usually includes an invaluable new car warranty. Covering a period of time or kms travelled, these offer a really good level of consumer protection. It pays to check out the fine print, as there may be points of difference between each of the car brands. One in particular to keep in mind is that your new car needs to be serviced at an authorised service centre for the warranty to remain valid.

In the case of Suzuki, our Real Value 5 year Warranty Package includes a comprehensive 3 year/100,000km new vehicle warranty, which covers your entire vehicle for the most important part of its lifecycle and a 2 year powertrain warranty extension and 5 years of roadside assistance for those times when you get a flat tyre or lock your keys in the car. If you want to learn more about how our Suzuki Warranty works, have a look at this page.

Extended Warranty

If the car you are looking at buying is no longer covered by a manufacturer’s warranty, the dealership may offer you an extended warranty complimentary or for a fee. This will likely come with some conditions such as servicing your vehicle regularly with them.

If you decide to purchase an extended warranty, the dealer must provide you:

  • a written copy of the extended warranty agreement, terms and conditions and expiration date.
  • a summary of your rights under the Consumer Guarantees Act (CGA) and how an extended warranty gives you additional protection above the law.
  • a summary of your rights to cancel the extended warranty under the Fair Trading Act.

Extended warranties can be handy if you are buying your car for commercial use as these are not generally covered under the Consumer Guarantees Act.

If you think an extended warranty on your car is something you’d like, simply let your car dealer know.

Consumer Guarantees Act

While not technically a warranty, any new and used cars bought at a registered dealership for personal use are covered by the Consumer Guarantees Act. If there is any issue, not caused by misuse of the vehicle, then the seller is obligated to repair, replace, or refund depending on the situation.

If you’re planning on investing in something as important as a new car, it’s imperative that you first do your research. Take the time to choose a make and model known for its reliability, with quick and easy access to parts and professional technicians that know all about your car. 

Hopefully, this has given you some insight into how car warranties and insurance work in New Zealand and explained some of the questions you have. If you feel ready to purchase a new car, or want to do some more research, take a look at our website or this guide to buying a new car. There, you’ll find a host of information that can get you on the road to worry-free driving.