How do I lower my Car Insurance Premium in NZ?

Date Sep 22, 2020
Blog category Car Insurance
Blog category Insurance
By Huey A
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The cost of car insurance varies among buyers. Insurance policies tend to be heavily personalized towards each driver’s preferences, making it hard to establish a clear baseline. Factor in other details like age, where you live, any add-ons, or even what car you drive and how powerful it is, and you generally get a wider range of values to work with. Nonetheless, it’s still possible to reduce your premiums provided you follow some good practices when buying car insurance in NZ.

Get better car security

Keeping your car secure is really helpful in lowering your car insurance premium. The less risk your car faces from theft, the more confident your provider will be, allowing them to offer lower prices. 

Keep in mind some of the basic tips to protect your vehicle. For example:

  • Keeping your car keys and backups in your sights at all times.
  • Avoid leaving keys near the front door to make it less easier for thieves.
  • Avoid leaving valuables in full view from your window when leaving your vehicle, making it less tempting for thieves to break in.
  • For a more thorough solution, you can install a car alarm system or a steering wheel lock, deterring robbers from taking the vehicle.

Practice mindfulness when driving

Drive safely and avoid running into any traffic violations while on the road. Be aware of any distractions that could cause you to take your eyes off the wheel even for just a moment. Avoid using your mobile device while driving and keep your dash clear so you can easily see what’s in front of you. 

Better yet, practice defensive driving at all times. Some insurance companies such as Vero may even provide a discount for those who are able to prove that they’ve taken a defensive driving course. Prevention is always better than a cure, and being safe on the road ensures you won’t have to spend anything on repairs and liabilities.

Commute via public transportation

You may not necessarily need to use your car every day whenever you need to go somewhere. Unless you’re travelling with valuable items like a laptop or other gadgets, you can get to most places by just taking mass transit. Fortunately, New Zealand does have a good public transport system in place with cities and towns having buses and suburban rail services.

Now, this is relevant since by taking public transportation every now and then, you reduce the number of miles on your insured vehicle. The lower your mileage, the more eligible you become for a discount. Always ask your provider about their mileage thresholds before purchasing so you can find the best deal. Check that any mileage you provide your insurer is accurate. Never underestimate or overestimate this value.

Keep in mind the type of car insurance you purchase

Car insurance in NZ typically comes in three types: comprehensive, third party, and third party with fire and theft coverage. If you’re a businessman, you may want to opt for a more comprehensive cover as you’ll probably spend more time on the road while passing through other unfamiliar routes to reach clients. 

On the other hand, a third party policy can be sufficient if you only use your vehicle for domestic or non-work-related driving. Make sure that the policy you take out matches your circumstances and how you typically use your vehicle.

Reduce the extras you add on to your policy

Car insurance in NZ tends to have a lot of optional add-ons. While it may seem tempting to add extras like glass coverage, you may want to pause and consider your circumstances first. Most of the time, you may not even need these add-ons. If you live in an area with many car repair shops and similar services, you may not need roadside assistance for one. 

Compare and switch to a better policy

You can easily reduce your car insurance premium by comparing different providers and deals available. Staying too long with one insurer after taking out a claim could lead you into paying higher premiums later on. There are always better options available regardless of the type of insurance you want. We can help you get started with that for free! Simply provide us a few details regarding your circumstances and use our free comparison tool for a tailored car insurance deal for you! Give glimp a try today!

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Christine Henare , 2021-06-25

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