One mistake that people make when they buy their first car is that they often forget about the additional expenses of actually owning a car such as servicing fees, Warrant of Fitness fees and car insurance.
If you are purchasing your first car then you are most likely not too familiar with buying car insurance either.
This is why we’ve put together this Beginners Guide for buying car insurance in New Zealand. We also have a free tool to help you Compare Car Insurance Quotes in New Zealand.
How is my Car Insurance Fee Calculated?
A car insurance quote is calculated based on a number of different criteria which can also be dependent on the vehicle insurance provider that you choose to go with.
For example, if you ask for a quick quote on any of the car insurance websites, you may be presented with questions related to any of the following:
- What type of cover are you looking for?
- When would you like your car insurance policy to start?
- Make and Model information
- The main location of where you keep your car
- Information related to where your car is parked at night e.g. garage or street parking
- Driver related information such as age, current license type, past car incidents, etc.
These questions were taken from the AMI Insurance website. There are slight differences from other car insurance providers in terms of the types of information that they use to calculate car insurance quotes.
However, for the most part, this is the type of information they will need to calculate your car insurance quote.
What is Car Insurance Excess?
Car insurance excess is essentially the amount that you have to pay before your provider will step in and take care of the rest of the bills.
Excess is paid when an accident happens and is the amount of money that you are paying towards a claim (in the event of an accident).
The excess is often deducted from the claim after payment policy limits have been applied. Furthermore, excess policies differ by the providers.
Under 25? Look for a Young Driver Policy
Many car insurance providers have a policy where they perceive age as a determinant of someone's driving ability.
If you are under 25, we recommend looking for Young Driver Insurance as these types of policies place less emphasis on your age which can save you a considerable amount in the long run.
Car Insurance Tip: Compare Quotes and Save
It has been proven that if you compare vehicle insurance quotes, you can actually reduce the amount that you pay.
If you think about it, the first year of your car insurance policy is based on all the factors mentioned above as well as the agreed value of your vehicle.
The second year of car insurance will factor in depreciation which has already been predetermined by the car insurance provider which means that there is little room for negotiation.