Car Insurance In NZ
If you are looking for a car insurance NZ company to insure your vehicle, there are some specific topics you should understand so that you can get the best coverage possible at the cheapest rate. Car insurance in NZ is not legally required but is an ideal investment to insure you from financial loss in the event of an auto accident.
An insurance policy is a legal contract between an insurance company and the policyholder, which would be you. In exchange for a premium payment, usually paid monthly or annually, the car insurance NZ company agrees to pay for your losses in the event of an auto accident as defined in your policy agreement.
Each Youi Car Insurance NZ policy has three main types of coverage. Let’s take a look at each one of these below.
Property Coverage – This type of coverage pays for damage or theft of your vehicle. This also covers any damage you due to objects, such as traffic lights or guard rails.
Liability Coverage – In the event that you are found at fault for an accident, liability coverage takes care of your legal responsibility to the other vehicles involved. This includes both property damage and bodily damage to third party individuals.
Medical Coverage – This type of car insurance NZ coverage can be just for the other individual you are at fault for injuring or it could include both you and the other injured party. Medical coverage pays for treatment, rehabilitation, lost wages, and funeral expenses as a result of an accident.
Before you decide on any car insurance NZ policy, you should take a look at the coverage limits for each one of these areas. Realize that any costs that result from an accident which you cause that exceed these limits you will have to pay out of pocket for.
Now that you understand what is outlined in each car insurance in NZ policy, it’s time to take a look at the different levels of coverage that you can get. Your financial situation and the type of vehicle you own will help decide which level of insurance is optimal for your driving.
Comprehensive Coverage – This type of car insurance NZ coverage will provide you with repair or replacement costs up to the market value of your vehicle in the event that damage occurs. This covers your vehicle in the event that you are found at fault for an accident. This type of coverage also pays for the damages to other vehicles that you hit during the accident.
Third Party, Fire And Theft Coverage – This car insurance NZ policy will take care of damages to other people’s vehicle that you damaged during an auto accident. In addition, this policy will cover any fire or theft damage that occurs to your vehicle.
Third Party – This car insurance NZ type is the cheapest on the market. It covers any damage that you do to other people’s vehicle. This doesn’t cover any damages that occur to your vehicle.