Car Insurance Explained
Unlike many countries in Europe like the United Kingdom car insurance in New Zealand is not mandatory. Therefore in the event of a road accident that has a third party claim if through what is known as the “Disputes Tribunal or District Court” you may become liable to pay for the damages caused to the third party. Often referred to as "auto insurance" or "van insurance" or "vehicle insurance" also.
There are two basic types of policy available by insurance providers. Namely “Comprehensive”, “Third Party” and "Third Party Fire & Theft".
Comprehensive car insurance will cover claims on your own vehicle and the vehicle of the third party if there is a third party involved. Depending on the policy this may also cover injury and or death claims.
Third Party car Insurance will normally only cover claims of the third party. The policy may or may not also cover claims of the third party for injury or death claims. There is the option to add to this with what is called a "Third Party Fire and Theft Policy".
Depending on which policy is taken. The policy may cover the vehicle, or the actual person.
Often a policy will allow the option of what is known as an “excess”. The “excess” means that the premiums can be reduced to make the policy more affordable if you agree to cover the first portion of any future claim. For example $500 or $5000.