13 Feb Insurance

Car insurance is designed to provide you with financial protection in case of accidents, theft, or other unexpected events involving your vehicle. Having car insurance is not compulsory in New Zealand, but most finance companies will require you to have full comprehensive insurance when you finance a car. This because the vehicle is the finance companies security for the loan and their interest in the car must be protected.

As well as the payments to the finance company, it is important to also consider the cost of insurance when you are working out a budget for your new car.

Insurance companies consider a number of factors when determining the premiums you will pay. These may include –

• the class of license of the insured and any named driver, i.e.. Learner, Restricted or Full
• any license endorsements or conditions
• type of car, it’s age and mileage
• age and experience of the driver and any other named drivers
• where you live, such as an area of high crime or a history of traffic accidents
•  where the car is parked overnight
• a history of no insurance claims

It is important to shop around for the best prices for your insurance as premiums can vary, as each company may consider some of these factors more than others. For example, one company may determine that the age of a driver is more relevant than the type of car.