Many people are tempted to skip out on car insurance in New Zealand when they find out that they are not required to carry insurance on any vehicle that they own. When you are looking for ways to save money, this can seem like a great way to do so! But it will backfire on you later on if you are in an accident and have to pay thousands of dollars to get your car fixed or have to pay the hospital bills for another driver that got hurt.

Finding car insurance in New Zealand doesn’t have to be difficult, but it can be confusing when you don’t know what to look for. The best thing you can do is to learn more about what car insurance in New Zealand entails and how it can cover your assets. There are different types of coverage and you can mix and match to find the type that is right for you.

Comprehensive Vs. Third-Party Coverage

Comprehensive coverage will cover you, your vehicle and the other person and vehicle if you are in an accident. This type of car insurance in New Zealand is the best kind to buy if you want to make sure you aren’t paying much out of pocket if you are involved in an accident. Even when the accident is your fault, comprehensive will still cover fixing your vehicle and medical bills for anyone who is injured. Comprehensive is a more expensive type of car insurance Youi in New Zealand but it is worth it if you have a newer vehicle that would cost a lot to fix, or if you want to make sure you aren’t responsible for damages if you cause an accident.

Third-party coverage is a cheaper type of car insurance in New Zealand that many people opt for when they are trying to save money. If you cause an accident, third-party car insurance in New Zealand will pay for damages to the other person’s car, as well as any medical bills they incur from the wreck. The catch is that your vehicle will not be covered at all. You’ll have to pay completely out of pocket for any damages done, plus any medical expenses you incur. If you do not have separate medical coverage, these costs can run into the thousands easily. Still, this is a type of car insurance in New Zealand that is better than having none at all.

Before You Make the Decision

Make sure to read the fine print of your insurance policy before you make your final decision. Some policies will cover the driver no matter what vehicle they are in, while others will only cover the insured vehicle itself. You must have a current and valid driver’s license in order to receive car insurance, and your insurance could be voided if you cause or are in an accident while under the influence of drugs or alcohol. Make sure you are upfront about your driving history when you apply for car insurance, as well.