What kind of car insurance do you need?

2 MIN READ October 20, 2022
It goes without saying that if you’re driving a car, you’ll need to have it insured right? But what kind of cover do you really need?

In New Zealand, it’s not compulsory for drivers to have car insurance and there are drivers on the road who don’t have anything at all.

Say someone else has hit your car but you weren’t at fault, if the other driver doesn’t have insurance, the collision could have an impact on your finances depending on the type of cover you’ve got.

Types of car insurance



Third-party is usually a more affordable option given that your cover is more limited. You’re only covered if you damage someone else’s car – it won’t cover damages to your own car.

Some policies give limited cover if the accident is not your fault and the other driver has no insurance, possible covering up to $3,000 for the repairs of your car. You can also be eligible for cover in the event of theft and fire if you have this cover built in.


Comprehensive cover covers your car for a number of things, such as theft and damages to your car or damage you’ve caused to someone else’s car. You can make a claim immediately for the damage to your car with your insurer.

Often it’s easier to go through your own insurance even if the other driver has insurance so you can have someone sort it out on your behalf. This cover can sometimes have extra benefits, including covering the costs of towing and alternative transport.

How do you choose what cover you’ll need?

We’ve put together some questions to help you figure out what cover is right for you.

  • How much is your car worth?
  • How will you get around if your car is being repaired? Do you need to include an alternative transport benefit?
  • Have you got enough money to replace or repair your car or would you need money from insurance?
  • How much would your premiums and excess be compared to the value of your car?

Some people prefer to get comprehensive for peace of mind but for others, they prefer to have third-party. If you’re thinking you could be getting better bang for your buck with your car insurance or you’d just like to explore your options, get in touch with us today!

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