How To Find The Best Car Insurance In NZ

Finding the best car insurance in NZ will greatly reduce the money problems you'll have if you ever get in an accident. The right car insurance will pay for the damages you may have caused to someone else’s vehicle, in the same way that the other driver’s policy will help pay for yours.

For bigger long-term savings and preventing potential money woes, read on to see where you can actually find the best car insurance in your area.

Getting Started with Car Insurance Comparison

Before you can start shopping around for a car insurance policy, you need to figure out your specific needs and driving habits, as the policy you take out will ultimately affect your insurance costs. Aside from that, you will also look into other factors such as:

Your Location

Your car insurance costs may vary depending on your location, for one. Insurers may look at the traffic conditions, general safety and security, and how susceptible vehicles are to property damage in the area. Expect to see higher premiums for higher-risk areas.

Market Value

This is the baseline value of your vehicle based on its make, model, and series. Insurers will usually use this as a baseline value for replacement in the incident.

Modifications

Modifications you’ve made to parts of your car should be declared when choosing an insurance policy. This is the only time they’ll be covered by your provider.

Vehicle Age

Cars get more susceptible to engine and parts breakdowns the longer they’ve been used out on the road, so many insurers will be considering your vehicle’s age when it comes to the pricing of your policy premiums.

Vehicle Type

Sometimes, insuring a larger vehicle like an SUV or a top-of-the-line, expensive model will be much more expensive than insuring a common commuter car. Some insurers may also offer a discount if you use a hybrid or EV.

Policy Add-ons

Sometimes, insurers offer add-ons to the policy such as roadside assistance, loss of use benefits, and even rental car benefits. This can considerably bump up costs or be offered only in more expensive policies. 

Level of Coverage

The costs of your car insurance premiums will depend on the level of coverage you chose. For one, a comprehensive policy is generally more expensive though it does cover a lot more incidents and damages should you get yourself into an accident.

Driver Credit Rating

Sometimes, a driver’s credit rating may also be considered when it comes to determining their insurance premiums. Some insurers look at it in order to determine whether a driver is careful and responsible with their driving habits. If a driver has been in a lot of accidents, it could increase their premiums.

Driver Age

Car insurance for young drivers can be more expensive, generally due to their perceived lack of driving experience. Younger drivers will need to shop around more to get a policy that is both affordable and comprehensive enough for their needs.

So how do I get the best deal on my car insurance?

You should always, always shop around. With so many companies offering car insurance in NZ, you can be sure that there’s a provider out there that offers just the right deal for your needs. The key now is how to find them. But first, it pays to review some of the other factors already discussed above.

Decide on your level of coverage

Depending on your driving habits, you may not need full coverage at all times. For instance, if you drive your car often, you will get a lot of mileage from your comprehensive car insurance policy. On the other hand, you may not necessarily need all the bells and whistles that come with a comprehensive policy if you don’t use your vehicle as often. In that case, you can look into two other options available:

Third-party Car Insurance

Third-party Car Insurance is a more basic coverage that only covers damages sustained by a third-party in the event of an accident. It will not pay for any damages your own vehicle has sustained which is something to keep in mind.

Third-party Fire and Theft Car Insurance

This is almost similar to just having a third-party only policy, but with some extended coverage. Choosing this level of cover now insures your car in the event of fire damage and possible theft of the vehicle. Some people see this is an acceptable middle-ground for those who want something beyond basic coverage without shelling out the extra premiums for a comprehensive policy.

Compare Available Providers

Once you’ve decided on a policy that you want, it’s now time to compare providers. This isn’t as straightforward to do as there are many providers in NZ, with deals that almost look identical with each other. Combing through the finer details will take time, but it pays to do so in order to get the best deal.

Fortunately, there are many services that allow you to sort through all these providers and deals quickly. For instance, glimp’s free comparison tool can immediately sort out the latest deals from the best car insurance providers according to your preference. It helps track any ongoing discounts that providers may have as well.

Always Negotiate

Above all, always try to negotiate with your provider. There might always be ways to lower your premiums, depending on your own driving history as well as other insurance policies you may already have. Perhaps you can omit certain policies if they’ll be covered under your car insurance anyway.

Another aspect you can use to help lower your premiums is by negotiating your deductibles. By increasing the deductibles, your premiums will also decrease. A deductible is the amount you will need to pay when you use your car insurance to cover any repairs to your car in the event of an accident.

Review the fine print

As always, review all the details of your insurance policy before you sign. Take the time to review all the terms and conditions outlined in the policy. Ask questions about difficult terms in the contract. This will go a long way in helping you understand all the inclusions and exclusions of the policy. You'll then be able to file claims easily when you know your policy right from the start.

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