Car Insurance FAQ - Your Questions Answered

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We work with all major New Zealand car insurance providers including AA Insurance, AMI, State Insurance, Tower, Cove, and many more. This ensures you see a comprehensive range of options.

Our comparison process takes just 3 minutes to complete. Once you submit your details, you'll receive quotes from multiple insurers within minutes. Most customers get 3-8 quotes to compare.

No, there's no obligation to purchase. Our service is designed to help you compare options. You're free to take our quotes and purchase directly from an insurer if you prefer.

Comprehensive insurance covers damage to your own vehicle plus third party liability. Third party insurance only covers damage you cause to other people's property and vehicles - it doesn't cover your own car.

While car insurance isn't legally required in NZ, you are liable for any damage you cause to other people or property. Most people choose at least third party coverage for financial protection.

An excess is the amount you pay towards any claim. For example, if you have a $500 excess and make a $2000 claim, you pay $500 and your insurer pays $1500. Higher excesses usually mean lower premiums.

Factors include your age, driving history, vehicle type and value, where you live, how much you drive, and the level of coverage you choose. Your claims history and credit score may also be considered.

Third party fire and theft sits between third party only and comprehensive. It covers damage to other people's property plus fire damage and theft of your own vehicle. It's a mid-range option for those wanting some protection without full comprehensive costs.

Comprehensive insurance covers damage to your vehicle from accidents, theft, fire, weather events, vandalism, and third party liability. It typically includes windscreen damage, towing costs, and temporary rental vehicles. Check your policy for specific inclusions and exclusions.

Yes, you can and should insure financed or leased vehicles. Most lenders require comprehensive insurance as a condition of the loan. Make sure your agreed value or sum insured covers the outstanding loan amount.

Market value is what your car is worth at the time of a claim (which depreciates). Agreed value is a fixed amount you and the insurer agree on when taking out the policy. Agreed value policies are usually more expensive but provide certainty.

Average car insurance costs range from $40-$200 per month depending on coverage type, your age, location, vehicle, and driving history. Young drivers (under 25) typically pay $150-$300 per month, while experienced drivers over 30 pay $50-$120 per month for comprehensive coverage.

Young drivers (under 25) are statistically more likely to have accidents. Insurance companies charge higher premiums to reflect this higher risk. Premiums typically decrease significantly after age 25, especially with a clean driving record.

You can lower premiums by: increasing your excess, installing security devices, parking in a secure garage, reducing annual mileage, taking defensive driving courses, bundling multiple policies, maintaining a no-claims bonus, and comparing quotes annually.

Annual payments are usually 5-10% cheaper than monthly payments. Insurers often add interest or admin fees to monthly payment plans. However, monthly payments help with budgeting and cash flow.

Yes, choosing a higher excess reduces your premium because you're taking on more of the risk. For example, increasing your excess from $400 to $1000 might save you 10-20% on your premium. Choose an excess you can comfortably afford to pay if you need to claim.

Premiums can increase due to: overall claims costs rising industry-wide, increased vehicle repair costs, changes to your circumstances (age, address, vehicle), inflation, or changes to your insurer's risk assessment. It's worth shopping around annually to ensure you're getting the best rate.

No-claims bonuses reward you for not making claims. Discounts typically start at 10-15% after one claim-free year and can reach 50-65% after five or more years without claims.

First, ensure everyone's safety and call emergency services if needed. Exchange details with other parties, take photos of damage and the scene, and contact your insurer as soon as possible to report the incident.

Yes! Common discounts include multi-policy bundling, security device installations, low mileage driving, advanced driver training, and loyalty discounts. Each insurer offers different discount programs.

Simple claims (like windscreen damage) can be processed in 1-3 days. More complex claims involving assessments and repairs typically take 1-4 weeks. Total loss claims may take 4-8 weeks depending on negotiations and documentation.

Making a claim often results in premium increases at renewal, typically 20-50% depending on the claim size and fault. You may also lose your no-claims bonus. However, not-at-fault claims sometimes don't affect premiums if you provide third party details.

If you have comprehensive insurance, you can claim through your policy (paying your excess). If you have third party only, you'll need the other driver's details to claim from their insurer. If it's a hit-and-run with no details, you can only claim if you have comprehensive cover.

Most insurers have preferred repair networks, but many policies allow you to choose your own repairer. Check your policy terms - using a preferred repairer often comes with guarantees on repairs and faster claim processing.

Common exclusions include: driving under the influence, unlicensed driving, intentional damage, wear and tear, mechanical breakdowns, racing or illegal activities, and using your car for purposes not declared in your policy (e.g., courier work).

Most policies allow you to cancel with reasonable notice (usually 14-30 days). However, you may face cancellation fees or lose no-claims bonuses depending on your current insurer's terms.

Generally no - you can transfer your no-claims bonus between insurers. You'll need to provide proof from your previous insurer, typically in the form of a letter or certificate.

Switching can be completed within a few days. We recommend arranging your new policy before cancelling your existing one to avoid any gaps in coverage.

The best time is at your renewal date to avoid cancellation fees. However, if you find significantly better rates mid-term, calculate whether the savings outweigh any cancellation fees. Always ensure continuous coverage.

If you've paid annually and cancel mid-term, you'll usually get a pro-rata refund minus any cancellation fees (typically $25-$50). If you're on monthly payments, you'll just stop being charged after the notice period.

Yes, but it can be expensive. Some insurers won't cover learner drivers at all, while others charge high premiums. The cheapest option is often being added as a named driver on a parent's or guardian's policy.

Restricted license holders typically pay 30-50% more than full license holders. Expect to pay $100-$250 per month for comprehensive cover, depending on your age, vehicle, and location.

Not necessarily. If you mainly drive a family car, being added as a named driver on a parent's policy is usually much cheaper than getting your own policy. However, if you own your own car, you'll need your own policy.

Yes, premiums typically drop significantly at age 25, often by 20-40%. This is because statistics show drivers over 25 have fewer accidents. Your premium will continue to decrease gradually until around age 30-35.

Yes, sports cars and high-performance vehicles are significantly more expensive to insure due to higher theft risk, expensive parts, and increased likelihood of speed-related accidents. Expect to pay 50-200% more than standard vehicles.

Not necessarily. While EVs have fewer mechanical parts, they can be more expensive to insure due to costly battery replacements and specialized repairs. Some insurers offer EV-specific policies with competitive rates.

Imported vehicles can be more expensive to insure due to parts availability and specialist repair costs. Ensure your vehicle has a VTNZ certification and check that insurers will cover grey imports. Some insurers specialize in imported vehicle insurance.

Utes used for personal use have similar insurance to cars. However, if you use your ute for business (tools, materials, towing), you'll need commercial vehicle insurance which covers business use and equipment. Always declare your actual use.

Driving without insurance isn't illegal in NZ, but you're personally liable for all damage you cause. This could mean paying thousands or even hundreds of thousands in damages from a serious accident. You could also face legal action from other parties.

This depends on your policy. Some comprehensive policies include 'driving other cars' cover, but it's usually only third party coverage and often has restrictions (e.g., with owner's permission, emergency use only). Always check your policy or contact your insurer.

You're legally allowed to drive on a valid overseas license for up to 12 months, but you're not required to have insurance. However, it's highly recommended as you'll be liable for any damage you cause. Some insurers offer short-term policies for visitors.

ACC (Accident Compensation Corporation) covers personal injury for all New Zealanders regardless of fault. This is why car insurance in NZ focuses on vehicle and property damage rather than personal injury. Your car insurance won't cover your medical costs - ACC does.

We receive commissions from insurance companies when customers purchase policies through our platform. This doesn't affect the quotes you receive - insurers pay the same commission regardless of which broker you use.

No, we never sell your personal information to third parties. We only share your details with insurance companies you choose to get quotes from, and only for the purpose of providing those quotes.

Quotes are indicative prices based on the information provided. Final premiums may vary slightly once the insurer completes their full underwriting process, but significant changes are rare.

Insurance premiums are calculated based on risk factors. The more accurate information you provide about your age, driving history, vehicle, and usage, the more accurate your quotes will be. Providing incorrect information could invalidate your policy.

The best insurer depends on your specific needs. Consider not just price, but also claim handling reputation, customer service, policy features, and excess options. Read reviews and compare what's included in each quote before deciding.