Understanding Insurance Options for Your New Car

Young male motorist involved in car accident calling insurance company or recovery service

30 Oct Understanding Insurance Options for Your New Car

Buying a new vehicle is one large investment. It’s also a big responsibility, especially if you’re financing it through a car loan that ties you to monthly payments under a loan term. It’s only right to go and get car insurance that will protect your asset from unexpected situations that may, in worst cases, obliterate your hard-earned purchase and cost you more than it’s worth.

In New Zealand, vehicle insurance isn’t compulsory. However, we believe it should be, as there are more than enough good reasons to go and get one. Let’s explore different insurance options so you know what it can do for you and your vehicle in worst-case scenarios.

Third-Party Property Damage Insurance

As a driver, you must be prepared for various unforeseen situations that can happen while driving, as well as the damage you could potentially cause to someone else’s vehicle or property. Accidental car scratches from minor crashes that implicate damage to someone else’s vehicle can be one of them. With third party property damage insurance, you’re covered against the damage fees involving the other party’s vehicle. You can also free yourself from paying extra for towing costs, road clearing costs, and even damage caused by uninsured drivers.

Third-Party, Fire and Theft Insurance

As a car owner, it may not even cross your mind that possible threats like fire and theft can leave you, well, car-less. But in the minds of many car insurance companies who have handled similar cases, insurance is vital. This type of insurance covers damage caused by fire, theft as well as third-party property damage so you won’t have to pay for the associated damages or repair costs.

You’ve likely heard of a friend getting into an accident or that they’d just had their car stolen, and you never think it will happen to you until it does! So, in the unlikely event that it does happen, it pays to give yourself that peace of mind. Not to mention the stress that will be off your shoulders.

Comprehensive Insurance

As the name suggests, comprehensive insurance covers you against a wide variety of damage. This can include accidental loss, damage to other people’s vehicles or property, costs for salvaging your car from accident scenes, towing services, and more. Generally, comprehensive insurance is more expensive as it offers broader protection, insuring you from extensive damages as well as providing additional benefits to insurance holders. The benefits will largely depend on which company you have availed your insurance from.

Protect one of your biggest assets!

Purchasing a car is a major investment. If you’ve purchased your vehicle through car finance, car insurance may be a requirement of drawing down on your loan. Plus it’s also more likely that you haven’t made the full payment to cover the cost of your car. And even after purchase, the costs of regular maintenance and gas are no joke! It takes a lot of time, effort, and money on your part to keep it in tip-top shape. Naturally, you would want to get the most protection for your vehicles so it runs its full course and you can maximise its use. Getting car insurance offers you personal protection, as you never know what could happen on these New Zealand roads!

Here at Max Insurances, our Insurance Advisers would like to explore a number of competitive insurance options to ensure you get the most appropriate cover possible at a competitive premium. In addition, if you need help with car financing, as part of the Max Money Group, Max Loans can help you get pre-approved loans to give you powerful bargaining power over car dealers.

Even if you have already purchased insurance, it’s still worth talking to us to see if we can help you save money. Click here to obtain a free, no-obligation quote.

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This publication should not be deemed as insurance advice. While all care has been taken in the preparation of this publication by the writer, Max Insurances and the writer give no warranty as to the accuracy of this publication and whether the information contained within it is appropriate for your individual circumstances. No responsibility is taken by Max Insurances or the writer for any errors or omissions in this publication. You should seek specific insurance advice appropriate to your individual circumstances before acquiring or disposing an insurance product.