How to choose car insurance

Last updated 29 August 2022

You’ve bought your first car and it’s time to hit the road. But before you drive off into the sunset, make sure you choose the right car insurance for your situation. 

Getting your first car is a rite of passage for young Kiwis. It means freedom, independence but also a fair bit of responsibility. The last thing you want is to be left with a hefty repair bill - for your own car or someone else’s - just because you didn’t take the time to sort your car insurance.

So, what sort of car insurance should you choose? There are a few options to choose from, each covering you for different things. 

Each option comes with different premiums (your monthly insurance payments), although you can reduce your premiums over time by choosing a higher excess (the initial amount you have to pay towards repairs if you decide to make a claim).

Comprehensive cover

As the name suggests, comprehensive car insurance means you’re fully covered - whether you’re in a car accident, someone steals or deliberately damages your car, or your car is damaged in a storm or a fire. 

And it’s not only for damage to your car - this type of insurance will cover you for damage you might cause to other cars or property as well.

Fire, theft and third party

The next level down from comprehensive cover is fire, theft and third party cover. 

As you can probably guess, this insurance covers you if your car is damaged in a fire or is stolen. You’ll also have some cover if you have a car accident but only for the damage you cause to another car. If your own car is damaged in an accident, you won’t be covered.

If you are driving a hand-me-down car or one that isn’t worth repairing if it gets damaged, this could be the right option for you.

Third party only

This option will cover you if you damage another car or someone’s property, but nothing else. So if it gets stolen, damaged in a storm or fire, or you have a prang and need some panelbeating done - you won’t be able to make a claim. 

Again, this cover is for really rundown cars that aren’t worth a lot - ones you wouldn’t bother getting repaired or replaced if something happens to them.

Why have insurance in the first place? 

You might say ‘I don’t need insurance, I’m a careful driver.’ However, statistics released by the Ministry of Transport reveal a different picture for young drivers. In 2020, it found there were 79 fatal crashes and 509 serious injury crashes involving drivers aged 15-24. 

Having insurance and a road-worthy car means peace of mind. You might be the best driver in the world but that won’t help if someone else pulls out in front of you without looking, or your car is caught in a hailstorm.

How do you get car insurance?

The best thing to do is have a chat with us about what level of insurance is right for you. 

Not only can we guide you on the best type of cover for your situation, we can also help you work out what sort of excess you should select for your car, and what sort of premiums you can expect to pay.