Why It Pays to Invest in Vehicle Insurance

Your car means so much to you and your family. It gives you the freedom to come and go as you please.  It lets you explore New Zealand’s many beautiful regions. But it is also a considerable investment, not only to buy it but to keep it fuelled up and maintained, as well. That is why it makes sense to invest in vehicle insurance.

Accident Compensation Corporation may protect you in the event when you or someone else gets in in an accident. But sometimes, it is not enough. Getting a comprehensive vehicle insurance covers you for the unexpected like when you are liable for damages to someone else’s car, need to make repairs or when shady characters steal your car.

Types of vehicle insurance coverage

There are different levels of vehicle insurance coverage you may consider for your car, depending on its value or primary use.

Third party vehicle insurance

Third Party vehicle insurance covers you in the case that you are liable for damages to someone else’s vehicle. T if you have an old car and may be more expensive if you get into an accident.

Fire and theft coverage

A step up from the Third Party vehicle insurance is one that includes fire and theft coverage. With this, you can replace your car if it is stolen or becomes unusable due to a fire. Even if you will not be able to repair the vehicle, you will not be stuck without any car at all if you carry this additional coverage.

ACC vehicle insurance

The ACC is a compulsory program that was established in 1928. But for many, this is not enough. In fact, most New Zealanders choose to get additional coverage even though they already have this.

According to a survey published by the Ministry of Transport, 92.4% of drivers carry some level of motor vehicle insurance beyond ACC. Additional insurance is not compulsory. But this represents a level of compliance that is comparable to countries that do have mandatory car insurance.

Claiming on your vehicle insurance

When choosing a vehicle insurance provider, it is important to make sure that your insurer is available to help you if you happen to be in an accident, no matter who is at fault. They should also make it easy for you to file a claim when something happens.

So what do you do when you get into an accident? Here are some steps to follow.

Provide assistance

Before anything else, dial 111 for ambulance and police assistance to make sure that everyone is okay.

Do not admit liability

If they press you for answers, tell them to contact your insurer. Do not immediately admit that it is your fault, even if you know it is. Otherwise, you will be limiting your vehicle insurance company to negotiate on your behalf.

Get the details from the other driver

Exchange important details with the other driver or owner, including your name, address, phone number, registration, and insurance carrier.

What if it is a hit-and-run?

If you happen to be the victim of a hit-and-run, do your best to remember or gather details that will help police track down the offender, including the type of car, license plate number, and a physical description of the driver. Speaking to any witnesses can help with this.

It pays to be protected by additional car insurance, considering the impact on your lifestyle should the car be damaged or become a total loss. Call us anytime if you have questions about your level of coverage.

This website is written as a general guide and is not personalised advice. It is not intended as personal financial advice,nor is it specific advice to your situation. The author has written this in good faith and disclaims any liability from any action or inaction from how you may use this website or the results it may or may not achieve. Government, bank, company, insurer and lending policies, as well as other policies, procedures, and information in this website are likely to also change from time to time, and rules and decisions and policies may be applied differently and/or on a case-by-case basis. These rules may also change from the approximate time this was written. You are encouraged to recheck if these matters are accurate and up to date. By reading and using this website, you agree to hold the author, associated entities and/or associates, harmless.