Compare Comprehensive Car Insurance

What is comprehensive car insurance?

Comprehensive car insurance is a type of insurance policy that provides extensive coverage for your vehicle in New Zealand.

This policy covers damages to your car, regardless of whether you’re at fault for the incident. Comprehensive car insurance ensures you’re protected in scenarios such as a collision with another vehicle, a hail storm, or any unexpected event causing damage to your car.

What Does Comprehensive Car Insurance Cover?

Here’s what comprehensive car insurance generally covers:

• Accidental Damage: Your policy can cover repair or replacement costs from a small scratch to a total write-off.
• Theft or Vandalism: Your insurance can cover the loss if your car is stolen or vandalised.
• Natural Disasters: Weather events can cause damage to cars, like floods, hail or fallen trees and comprehensive insurance can cover the cost of repair or replacement.
• Legal Liability: If you’re at fault in an accident causing damage or injury to others, your policy can cover it.
• Emergency Services & Towing: If you break down or have an emergency on the road, the cost of getting your car to a repairer is usually covered.

But remember – read the fine print! It’s key to understand exactly what your policy covers.

How Expensive is Comprehensive Car Insurance?

A few factors determine how much you might pay for comprehensive car insurance. They include:

• Your Age: Because younger drivers are statistically more likely to have an accident, they usually pay higher premiums. With age and experience, your premium might drop.
• Driving History: A clean driving record can mean lower premiums. You’ll likely pay more if you’ve had speeding tickets or accidents.
• The Type of Car You Drive: If you have a newer car, it can be more expensive to insure than an older, cheaper model.
• Where You Live: Your premiums may be higher if you live in an area prone to crime or natural disasters. A safer neighbourhood can mean lower costs.
• Frequency of Use: If you’re on the road all the time this increases the chance of being involved in an accident or incident. Therefore, you’ll likely pay a higher premium.

Remember, these factors also offer opportunities for savings. Many insurers offer discounts for things like safe driving and installing security devices.

Car Insurance Excess — What You Need to Know

Car insurance excess is the money you pay before your insurer steps in when you make a claim. You’ll find two types of excess — standard and voluntary.

• Standard excess is a fixed amount you must pay for a claim.
• Voluntary excess is an extra amount you decide to pay.

Let’s look at an example. Imagine your car sustains damages in an accident amounting to NZ$3000.

If your standard excess is NZ$500, and you’ve chosen a voluntary excess of NZ$200, you’ll be expected to pay NZ$700 towards the repair cost. The remaining NZ$2,300 would then be covered by your insurer.

Choosing a higher voluntary excess usually makes your premium cheaper. But remember, you’ll have to have that money ready if you need to make a claim. It’s about balancing what you can afford now with what you might have to pay later.

Does Comprehensive Insurance Cover Me If I’m Driving Other Cars?

You might wonder if your comprehensive car insurance covers you when driving a friend’s car or a rental. It can depend on your policy. Some insurance plans cover other cars, but usually only for third-party damage. The best way to know is to check with your insurer to avoid unwanted surprises.

Are Learner Drivers Covered?

There’s good news if you have a learner driver in your family. Most comprehensive car insurance policies cover learner drivers. But keep in mind; there might be an extra excess if they have an accident. Always check with your insurer to get all the details.

Comprehensive vs Third Party Insurance

Comprehensive car insurance provides coverage for damage to your own vehicle as well as liability for damage to other people’s property, while also offering protection against theft, fire, and various other events.

Third-party car insurance, on the other hand, only covers the damage you might cause to other people’s vehicles or property, but it doesn’t provide coverage for your own vehicle if it gets damaged or stolen.

In New Zealand, it’s not required by law to have third-party insurance. Any injury from an accident is covered by the Accident Compensation Corporation (ACC), a system funded partly through vehicle registration fees and a portion of the fuel tax. However, this ACC scheme doesn’t pay for any damage you might cause to another person’s car in an accident.

The bottom line? Without comprehensive car insurance, if you cause an accident, you could be left with a big bill for your car. Even if an accident isn’t your fault, you might struggle to get your costs back if the person at fault can’t be found or doesn’t have insurance.

Comprehensive Insurance Optional Extras Explained

Optional extras are the add-ons you can include in your comprehensive car insurance policy. These can include things like windscreen and glass cover, a replacement car after an accident, roadside assistance, and no-claims bonus protection.

While adding these extras will make your premium more expensive, they can give you extra peace of mind and convenience. Think about creating an insurance package that fits your needs and budget.

How to make a Claim

When it comes to filing a claim with comprehensive car insurance, the process is generally straightforward.

• 1. Report the Incident: After an accident or event that caused damage, your first step will be to contact your insurance company to report what happened.
• 2. Provide Necessary Details: You’ll need to offer information about the incident, such as when and where it occurred, the extent of the damage, and any other involved parties. If available, include photos, witness statements, and police reports.
• 3. Claims Assessment: The insurance company will evaluate your claim. This step might involve sending an assessor to look at your vehicle and confirm the extent of the damage.
• 4. Claim Approval: If your claim is accepted, your insurer will then decide how to proceed. This could involve arranging for your vehicle to be repaired or providing a payout if your car is deemed a total loss.
• 5. Pay Your Excess: Before your insurance covers the remaining costs, you’ll need to pay your agreed upon excess.

Avoid delaying your claim by providing complete and accurate information at each stage.

How to Compare Comprehensive Car Insurance

Selecting comprehensive car insurance isn’t a one-size-fits-all thing. The cost can vary greatly, from a few hundred to a few thousand dollars a year. That’s why it’s essential to shop around.

It’s not just about how much it costs, but what you’re getting for your money. Look at things like excess amounts, optional extras, customer service, and how the insurer handles claims.