Although many rarely ever think it will happen to them, car accidents due happen. If one happens to you, we are sure you will be thankful that you had car insurance in NZ. Insurance will help take on the financial burden as a result of the accident.
What Is Car Insurance in NZ?
Car insurance NZ is a safety net for individuals to minimise their financial loss at times where accidents happen. You set up a policy with an insurance provider where you agree to pay a set amount, or premium. This can be paid monthly, bi-annually, or annually depending on the policy agreement you have.
In the event an accident does occur, the insurance company agrees to pay for the damages as stated in the policy. Different policies offer different levels of coverages, which is something you should be aware of when signing an agreement for car insurance in NZ.
It’s important to note, that many policies will require you to pay a deductible, or upfront cost when an accident occurs. This must be paid before your coverage from your car insurance in NZ kicks in. This amount can also vary depending on the policy you agree to.
What Type of Car Insurance In NZ Is Available?
Car insurance in NZ comes with many different coverage options. All of these coverages levels come with their own price. We’ve included most of the common types of policies below.
Bodily Injury Liability – This coverage is meant to pay for any damages incurred by those who you are found at fault to have injured. These damages include lost wages, medical bills, pain and suffering, and funeral expenses. The only thing you are covered for under this type of policy is legal costs associated with a lawsuit from the accident.
Property Damage Liability – This type of car insurance in NZ covers any property damage that you are found at fault for. This includes the repairs of other drivers’ vehicles and objects, such as light posts, guard rails, and buildings.
Collision Insurance – This car insurance in NZ covers the cost of repairs for both your vehicle and the other driver’s vehicle in the event of an accident that you are deemed at fault for. While this type of coverage is typically not required by any Government, it will likely be required by lenders who you are financing a vehicle through.
Underinsured / Uninsured Motorist Coverage – This type of car insurance in NZ protects you from the adverse actions of another driver. There are two instances where your insurance company will cover the damages to your vehicle.
These include when you are hit by another driver who doesn’t have insurance or the damages to your vehicle exceed what the other driver’s insurance policy limit is. While this type of insurance in not mandatory to have, it’s a good investment to ensure you are not hit with a financial burden due to the adverse actions of another driver.