Protecting your ride

DRIVING | August 2020

For many of us, getting from A to B would be pretty tricky without a car. But the road is a risky place. That’s why it’s important to protect yourself with car insurance.

According to the Ministry of Transport 92.4% of New Zealanders have some kind of car insurance to cover their vehicle or those of others.[1] It’s a really important safety net, giving you the reassurance that should you have an accident or your car gets stolen, you can get back on the road without the worry of a big bill.

If your premium has risen, we understand you’ll be wanting to know why. Here are some of the things that can impact premiums.


Technology and your premium

Bells and whistles are cool. The latest cars have super intelligent features like lane departure warning, blind spot warning and collision avoidance. All these things help to make our cars smarter and easier to drive, but most importantly, they help save lives. But they’re also costly to repair.

That small ding in your bumper might have been an easy fix a few years back. But today, with all the sensors and electronics, the cost can be in the thousands.


Smarter tech means smarter mechanics

All these whizz-bang extras on cars need wizards to fix them. Your average mechanic is not so average – they’re highly skilled specialists with computers and it costs a lot to keep them up to speed with all the latest technology. And these costs are adding pressure to insurance premiums.


Ok…anything else?

The cost of car insurance depends on a lot of things. Your driving history, your past claims and your age as well as your choice of car and where you live can all affect your premiums.


Do I have a choice of car insurance?

Sure do. You can choose one of three main ways of insuring your car. Car Comprehensive; Car Third party, Fire and Theft and Car Third Party only.

  • Car Comprehensive. Most people choose this policy as it provides you with the broadest protection and therefore the most peace-of-mind.
  • Car Third Party, Fire and Theft. This is often taken out to protect a lower value car while still offering you the benefit of protection from fire, theft or attempted theft. Plus, if you accidentally hit your neighbour’s BMW and it’s your fault, we'll pay for your neighbour’s repairs.
  • Third Party. This is the economy option covering you for damage you cause to someone else’s car or property, but not your own.

Saving on premiums – it’s doable.

  • Reduce the type of cover
  • Review your eligibility for discounts
  • Review your vehicle value as shown on your policy schedule - your car may be worth less than it’s currently insured for
  • Read more about ways to save here.

    Need advice on how to reduce your premiums? Just call us 0800 80 24 24.


    1. Ministry of Transport - Vehicle Insurance

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