Car insurance is an absolute necessity for car owners in New Zealand. This insurance coverage protects you legally and financially in the event of accidents, theft or other kinds of damage. 

Cars are essential assets for many reasons. No matter why you own a vehicle, it’s vital that you take good care of it. Accidents, damage and unforeseen incidents can happen when you do not expect them, and they can be expensive. 

What Is Car Insurance?

This is an insurance coverage type that protects drivers from unexpected vehicle-related costs. Caring for your vehicle can be expensive, and sudden maintenance can be a hefty financial burden that you’re not prepared for. With insurance, your insurance provider can help cover your costs so you can care for your car and stay on the road. Insurance may also be legally required in some cases.

In New Zealand, there are three main types of vehicle insurance coverage:

• Third Party Property Damage. This kind of policy covers you if you cause damage to someone else’s property, such as if your vehicle collides with a another vehicle or a structure on someone’s property. This is generally the most inexpensive form of vehicle insurance. 
• Third Party, Fire And Theft. This is similar to third-party property damage policies, but it also covers fire damage and theft of your vehicle. It’s typically more expensive, but it offers you additional protection. 
• Comprehensive Coverage. This form of vehicle insurance covers accidental damage or loss of your vehicle. It also covers damage to property if you are legally liable to cover that damage. Comprehensive coverage also covers costs involved with recovering your vehicle, taking it to a mechanic or panelbeater and other related costs. This form of coverage offers the most protection, but it is also the most expensive. 

What can car insurance cover? Your policy may cover you for:

• Vehicle repairs after an accident.
• Liability coverage. 
• Vehicle replacement after it is lost or stolen. 
• Towing costs. 
• Windscreen replacements and repairs.

How To Get The Most Out Of Your Car Insurance In 2025

Every driver is different, so you need to get a policy that works for your specific situation. Finding the best vehicle policy for you can be a challenge, regardless of whether or not you’ve gotten vehicle insurance before.

What can you do to get the right insurance policy for your vehicle?

Work With An Insurance Broker. The best way to get a suitable vehicle insurance policy in 2025 is to work with someone who knows what they’re doing. Insurance brokers who are familiar with car insurance can significantly simplify the process. They can empower you by explaining everything you need to know, while advocating for you and ensuring you have access to quality deals. 

Compare Options Before Deciding. Even if the first option you see looks amazing, you should never go with your first choice before you look at other policies. Work with your insurance broker to compare different offers.

Consider An Established, Trustworthy Insurance Provider. Ask your insurance broker about the insurance providers they usually work with. Do they have connections with New Zealand’s most reputable providers? Ask about notable companies like Vero Insurance NZ Ltd, NZI, QBE Insurance Ltd, Ando Insurance Ltd, etc. If you have a particular company you want to work with, be sure to bring it up to your broker. 

Look For Ways To Reduce Your Costs. Try to balance cost and quality when choosing a policy. You want to be able to afford insurance, but you should also cover everything you need to cover.

You can make your insurance more affordable by finding ways to reduce your insurance premiums.

• Have a full, clean driving licence. 
• Name specific drivers on your insurance policy, and avoid letting unlisted people drive. 
• Ask if you can get a discount on your policy if you have other policies with the same provider. 
• Improve your car’s security, such as keeping it securely locked in a garage with an alarm. 

Thoroughly Read Your Policy. Always read the fine print on your policy to understand exactly what each policy does and doesn’t cover. If you’re not clear on what your insurance covers, you may be in for a rude awakening if you need to make a claim and your damages aren’t covered. 

Review The Claims Process. Always review the claims process with your insurance broker. Making a claim can be stressful, adding to the stress of whatever caused the need to make a claim, such as an accident or unforeseen repair needs. So, reviewing the process beforehand can help give you peace of mind if you ever need to make a claim. If an incident occurs, you can stay calm and remind yourself of what you need to do.

Getting The Car Insurance Help You Need In NZ

Learn more about vehicle insurance and other types of insurance by visiting our website. Finding the right insurance policy for you can be confusing, but it doesn’t have to be. Reach out to us at Baileys Insurance to get started. 

Call 0800-898585 or contact us online to request a quote or send us a message.

Baileys Insurance: Stay covered and enjoy peace of mind.