What is Car Insurance?
Car insurance is an agreement between you (the driver) and an insurance company, under which you pay a car insurance premium for your coverage if something goes wrong. New Zealand has three levels of insurance.
Your options are third parties, which covers the damage you do to other people’s vehicles. Third-party fire and theft policies cover this, as well as any damage caused by fire and theft. Comprehensive car insurance covers you if you have an accident with someone else and need your car repaired or replaced. It’s the only type of policy that will cover almost any event, such as storms, vandalism, and car accidents.
Comprehensive, third party, fire and third party theft?
Comprehensive
If you want a top cover, this is the right choice for you.
It covers theft, vandalism, storms, floods, hail, fire, key replacement, emergency accommodation, rental cars, and accidental damage (to name a few) – plus everything that is covered by cheaper policies.
What does comprehensive car insurance cover?
You might ask yourself, What is complete accident coverage and how treats cover? Comprehensive car insurance covers loss or damage to your vehicle and your legal liability to a third party for loss or damage to their vehicle or property.
A typical comprehensive insurance policy covers your vehicle for the following:
- Flood, hail or storm damage
- malicious acts
- fire and theft
- accident or collision
- Damage to third party property.
What additional cover should I consider?
More comprehensive policies also include a bunch of extras, or make them as options:
- Cover for property inside the car
- Roadside assistance
- Towing and storage costs
- Emergency travel, accommodation and repairs
- new to old
- Use the rented car
- Windshield replacement
- replacement car cover
- Legal Liability Coverage
- Lock and key replacement
Coverage is normally based on the vehicle used by a particular driver(s) for private and occasional business use only and not for commercial use or driving charges (for a profit).
Third Party Fire & Theft
This gives you a little extra cover against life’s uncertainties. This protects you in the event of your car being stolen, and also protects you from fire damage.
You are also covered if your vehicle causes damage to someone else’s property. But this type of policy won’t really cover you if you have an accident with another vehicle.
Third party fire and theft insurance cover
Outsider fire and robbery approaches cover fire, burglary, and your responsibility for misfortune or harm to others’ property.
A regular approach might incorporate the accompanying advantages:
- Loss or damage due to fire or theft. Covering up the market value of your vehicle in the event of loss or damage caused by fire or theft.
- Third party coverage. Covers your legal liability for loss or damage to another person’s vehicle or property.
- A no-fault crash with an uninsured motorist. Limited cover for your vehicle repairs if you can identify the faulty driver.
- Emergency repairs. Compensation for emergency repairs to secure your vehicle and make it safe to drive.
- Storage costs. The cost of storing your vehicle in a yard or storage facility after an insured event
- temporary cover. Temporary cover if you sell your car and buy a replacement.
- tow a car. The cost of towing your vehicle after an insured accident, if it cannot be driven or if it is unsafe to drive.
Third party
Basic policy. This provides coverage for any damage you may cause to someone else’s vehicle or property.
This means that if you hit a Mercedes, you will not pay for the repair out of your own pocket. However, it will not cover your repair costs.
What does third party car insurance cover?
Third party is defined as car insurance that covers you from damage to other people’s property, eg their car or home, up to a certain limit, (eg $20 million). This third party insurance covers only this and nothing else, except for some policies that partially cover damage to your car as well, even if you’re wrong.
Cover includes:
- The cost of repair or replacement for damage to other persons’ property.
- Limited damage to your vehicle, if you are involved in a collision with a vehicle driven by an uninsured driver.
Additional benefits
Although third-party insurance is a discount policy, some insurance companies have other benefits that provide additional security, without raising the costs to the level of a comprehensive policy.
These additional benefits may include:
- Loss or damage to your personal items
- Cover for adjustments and accessories
- emergency repairs
- tow car
- temporary replacement vehicle
