There’s a range of options for car insurance NZ and car insurance companies NZ that offer them.
So let’s have a look at these options and explain what’s involved.
Car insurance NZ
Car insurance in NZ differs from many countries, in that car insurance is not legally compulsory in New Zealand, other than a portion of the car registration fee that goes to the Accident Compensation Commission (ACC). The ACC covers some medical costs if anyone is injured in an accident, regardless of who is at fault. But the ACC does not cover any damage to any vehicles or property. That is why it’s important to have car insurance in New Zealand.
Types of car insurance NZ polices are:
Third Party Property
A third party is an individual, group, or organisation, other than the insurance policy holder, or the insurance company.
The first party is the policy holder, whose liability is covered by the insurance policy.
The second party is the insurance organisation, that provides the policy, and accepts the liability specified in the policy document.
This type of car insurance NZ policy, only covers the policy holder for damage caused by them, to another parties property, including their vehicle. It does not include any cover for any damage done to the vehicle or property owned by the policy holder. This is the cheapest car insurance available. The typical person who will be most suited to buy car insurance of this type is someone who has a car of low value, so is prepared to effective cover their own car damage costs, but does not want to have to pay for damage caused to a high value vehicle or other expensive property.
Third Party, Fire and Theft
This type of car insurance NZ, has the third party cover as above, as well as covering the damage or loss, caused by fire, and/or theft to the insured car, which usually includes damage or loss to a third party. This type of policy is suited to a person who can’t afford a comprehensive car insurance NZ policy,, and owns a vehicle make and model, that is frequently targeted by car thieves, who will often either take the car for a joy ride and then set fire to it to destroy any forensic evidence, or by car thieves who dismantle the vehicle and sell the parts, in the second hand car parts market, so the the car is unlikely to be recovered.
Comprehensive or Full
This type of policy has the most extensive cover, which makes it the most expensive policy.
It typically includes cover for damage or accidental loss to the insured car. It also provides cover for any damage to property or vehicles owned by a third party, regardless of whose fault the cause of the damage was.
This type of policy normally includes related costs, such as the salvaging of vehicles at the location of the accident and transporting the damaged vehicles to a repairer.
Many car insurance companies offer additional cover such as glass cover.
Some insurance companies have found that statistically around 43% of their claims were for cracked windscreens. So they have included an windscreen cover either as an additional option, or as an included cover in their comprehensive policies, with no excess to pay and no loss of “no claims bonus.” This is worth checking to see if it’s in the insurance policy document, before you buy car insurance.
There are two main types of valuation:
1. Market Value -
This is the value of the car, immediately before the car was damaged.
2.Agreed value -
This is the value that you and the insurance company agree, is the value of the car at the beginning of the insurance cover period. So it’s usually the amount the insurance company will pay out in the case of a total write off, minus the excess.
With market value, when the car insurance NZ policy cover period ends, it’s a good idea to reconsider the market value of the car to ensure it’s not over valued, because the cost of the insurance policy is based on the estimated market value, which may not be the actual market value, so when an insurance assessor examines the car they may determine the value is less, than what you’re insurance premium calculation was based on. So you may have been paying more than you needed to.
The insured party has to take “reasonable care” to avoid theft, accidents, or losses. Therefore if a driver is determined to be under the influence of alcohol or drugs, any claims will most likely be declined.