Find cheap car insurance when you compare with Money Compare!

Car insurance, while not mandatory in New Zealand, is important to have to protect your wallet if you ever get into an unexpected accident while on the road. 

Coming in different tiers of coverage, car insurance can cover the cost of damage to the other party’s vehicle or property if you are at fault, cover for fire and theft, or cover damage to both parties no matter who is at fault. It is a good idea to understand the difference between each typical coverage type, and make an informed decision about which option is best for you, based on what you can afford, and what you are willing to risk. 

However, it is no secret that car insurance can be a pricey endeavour. Here at Money Compare, we are on a mission to help Kiwis make better decisions with their finances. And this article is designed to help you make a better decision about your car insurance and find the cheapest policy. 

1. Compare Policies

Leverage the power of comparison to find the best and cheapest car insurance policy for your unique needs. Money Compare’s comparison tool allows you to compare different car insurance policies side-by-side. You can select filters such as provider, plan type, substitute rental and towing so that you can find the policy at the best price, without compromising on your car insurance checklist.

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2. Consider Excess

When you purchase any type of insurance, you can choose to have an excess. The higher your excess, the less your insurance premium will be. 

What is excess? Excess is the amount of money you will pay to process your insurance claim. If you need to claim your car insurance, you will pay this excess sum – that you determined when you bought the insurance – to have your claim processed by the insurance provider. If you choose to have a higher excess, this can be a great way to combat the insurance premiums – or your regular insurance payments. 

Just remember that if you get into an accident, and need to file a claim, you’ll need to pay this excess sum. It’s a good idea to have that amount of money set aside, perhaps in an emergency fund, so that you can claim your insurance without any extra delay or stress if something unexpected happens. 

3. Pay Annually

When you pay your insurance premium annually, you will generally get a discounted rate. While it can be a lump sum of money, it’s a great way to avoid a monthly payment, which are generally higher than an annual payment. 

4. Add a Named Driver

If you are under 25, you are likely going to pay a higher premium, due to the risk you pose, on average, on the road. You may be able to get a lower premium by adding an older, named driver to the policy. 

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Further Reading:

What Car Insurance Do I Need?