Types of Car Insurance NZ coverage
There are four types of auto covers in New Zealand. However, there are several car insurance companies that will provide specialized plans that cover racing cars, exotic and classic cars. It is wise for car owners to understand what is covered under each of these plans. The four types of car insurance NZ available are:
• Third party car insurance
• Third party fire and theft
• Specialized car cover
• Comprehensive insurance cover
Third Party Fire and Theft
Third party fire and theft is designed to cover you if your car is stolen, if it catches fire, or in the event of damage to a third party. The insurance company will only pay for damages to a third party that you are responsible for. In case your car is damaged, the insurance company of the driver who is at fault will cover for those damages. Third party fire and theft is one of the most popular policies in New Zealand. This means that car owners can get competitive and cheap rates. An extensive search will help you get a good deal on your car insurance NZ https://www.youi.co.nz/car-insurance/compare.
Third Party Car Insurance
Third part car insurance NZ is the cheapest type of cover. This policy simply covers for the damage caused to a third party. This insurance plan is more ideal for older cars or those will little value.
Comprehensive Car Insurance
Comprehensive car insurance carries a higher limit and is more expensive. This policy comes with a complete coverage to the policyholder. This cover will pay for damages caused to your car and for those caused to a third party if you are at fault. Most comprehensive covers will also include theft and fire. You need to compare features from different providers so as to establish who has the most extensive coverage. If your car is on loan, a comprehensive cover is often compulsory. It, therefore, helps to shop around for a comprehensive car insurance NZ cover so that you do not pay for more than is necessary with Youi.
Specialized Car Insurance
Specialized car insurance often factors in how old a car is and the mileage. It is similar to third party insurance. However, this policy only applies when the car being insured is old, often 20 years and above. There is often a predetermined yearly mileage. In most cases, the insurance provider will need proof that you have another vehicle that you use regularly.
Understanding the different types of car insurance NZ helps car owners to make an informed decision and obtain sufficient cover.