Car Insurance in New Zealand: Costs, Comparison, Experiences
We explain the essential points and what you absolutely need to watch out for.
Unlike in Germany, car insurance in New Zealand is not mandatory. So, if you decide to risk it, you could be in huge trouble in the event of a claim. The roads in New Zealand (apart from major cities) are pretty bad, vehicles are sometimes 30 years old or more, and driving on the left has already caused many accidents.
We strongly recommend getting insurance. If you rent a car, insurance is usually offered. If you buy a car, the choice is yours, and navigating the New Zealand insurance jungle can be quite daunting.
We’ll show you what’s important, and decipher the fine print for you. Let’s go!
Intro
My First Impression...
I’ve unfortunately experienced firsthand how crucial car insurance in New Zealand can be: a rock chip and suddenly $350 for a new windshield.
Ouch… that hurts!
With insurance covering the windscreen, I could have saved that. But unfortunately, I didn’t have it back then.
Finding a good and affordable car insurance is definitely not easy. There are countless insurers and banks offering the same thing with extreme differences in the details.
But even if it’s time-consuming and nerve-wracking, from experience I can only advise: Look closely at which insurance is best for your vehicle and what is included in the policy.
Step 1 - Get an Overview
Okay, let’s face it: navigating the insurance topics is pretty dry and no fun. We’d love to take the load off and give you the most important tips here for starters.
The Options
Basically, you have two options when choosing car insurance in New Zealand: either a Third Party Insurance or Comprehensive Insurance. We'll give you a brief overview of both.
Third Party Insurance
A Third Party Insurance is the minimum you should get. It’s the liability insurance, similar to what's mandatory at home, that covers damages caused to others or when you are responsible for an accident.
Comprehensive Insurance
The Comprehensive Insurance is much more extensive, though also more expensive. It often pays off in the event of a claim. Coverage for theft, fire, damages to others, as well as your own car, are included.
So, you beautiful, little llama. Those are your options for car insurance in New Zealand. But before you decide, we should take a closer look at some details.
So let’s do that now!
Step 2 - Consider Services
Okay, let’s take a closer look at some details. Even though many insurances appear different on the surface, some terms keep coming up. It’s worth understanding these terms.
Extras
Even Comprehensive Insurance doesn’t cover everything. You’ll pay extra for things like windscreen protection or breakdown cover. Ouch!
User question:
Are such extras worth it?
Excess
The amount of excess you must pay in the event of a claim is predetermined in your policy. You can set this amount yourself. The higher the excess, the lower your premium.
User question:
Is a lower premium always good?
Premiums
Unfortunately, car insurance in New Zealand is relatively expensive, and various factors are considered when setting your premium. For example, driver’s age, car make, year of manufacture, and location.
User question:
What options are there to save on premiums?
Step 4 - Get Quotes
You can easily get a quote from all insurers and banks online. To determine your premium, you also need to provide information about yourself and your vehicle.
What Documents Do You Need?
To get a quote, you don't need much. However, usually your international driver’s license, your passport (sometimes just one of the two), and of course your car's license plate.
- Your passport
- Your driver's license
- The license plate
Great, that’s almost it. Now you know what to look out for in the contract details and have obtained some quotes. What’s next? Right, booking. So activate superpowers and let’s go!
Next up!
Step 5 - Book Offer
Okay, now it gets serious because you need to compare the offers and choose one. Overwhelmed? No worries, we’re giving you a quick overview of the providers worth considering.
Note:
Tip for ADAC Members
Which Insurance is the Best?
It's hard to say since it's difficult to make good comparisons given that insurance policies and premiums depend on so many factors. CanstarBlue conducted a survey questioning New Zealanders on aspects like service, communication, and claims, where Westpac came out on top.
Just some support. We hope you find the right car insurance in New Zealand for you. If you need help: Reach out and we’ll support you as much as we can.
Welcome to Team KiwiQuest!
Miscellaneous - File a Claim
Did you actually have an accident? Oh no! But hey, luckily you’ve got car insurance. So, now you should file a claim with your insurance.
Filing a Claim
No matter what kind of damage it is, before heading to the nearest garage or calling a tow truck, always call your insurance first to confirm if they’ll cover the damage and how much your possible contribution is. Also, be sure to always read the fine print as the devil often hides in the details. If you’re involved in an accident or your car gets damaged, follow this process:
Step 1
Make sure you have the following information ready for the claim: Name, names of all passengers, address, license plate, phone number and your policy details. Once you've got everything, grab your phone.
Step 2
Call your insurer and report the damage. Explain what happened and mention factors like weather conditions, time of day, road conditions, and anything that might have influenced your driving.
Step 3
As soon as you contact your insurer, you'll be assigned a representative specifically for your case. In most situations, your phone statement is enough to start the insurance process.
User question:
I don't think my damage will be covered. Should I call anyway?
User question:
The damage to my vehicle is minor. Should I just pay for it myself?
3 Reasons Claims are Rejected
- Negligence – you didn't lock your car and it got stolen
- Safety Risk I – your vehicle didn't have a valid WoF (Warrant of Fitness)
- Safety Risk II - you drove under the influence of alcohol or drugs
Miscellaneous - I Need Help
If the whole topic seems too complex, it might make sense to simply pre-arrange a camper through us. You'll get comprehensive guidance on car insurance and work exclusively with annually inspected garages where we would also buy a car.
1. Fill Out
Fill out the form.
2. Submit
And done! Everything else will be sent via email.
Information and Process
All information about the process, guarantee, and costs can be found on this page. Questions? Feel free to write us!
All Offer DetailsFrequently Asked Questions
What other KiwiQuesters wanted to know...
User question:
Does age play a role in insurance?
User question:
What is the Market Value all about?
User question:
How often do I need to pay my premiums?
What else is there?
We wish you an amazing adventure!
Welcome to Team KiwiQuest!
Team KiwiQuest
