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Your Insurance Options


Our guide on car insurance in New Zealand will help you choose the right car insurance for your new car.

Getting an insurance quote isn’t as difficult as it used to be, and with Cove Insurance you can get a quote and buy online in just a few minutes.

When buying a new or used car, it always pays to sort insurance before you drive off the lot. This will ensure you are covered immediately, which can be especially important when you are driving home in an unfamiliar car.


Types of car insurance

There are a few different types of car insurance, with the most popular being comprehensive car insurance. Comprehensive car insurance will cover your own vehicle, as well as damage to someone else’s property if you are responsible.


Other types of car insurance include third party, and third party fire and theft. ‘Third party’ simply means that the insurance policy will cover damage to someone else’s property if you are at fault - but not the damage to your own vehicle.


As with most types of insurance, car insurance often has a number of optional extras available which you can choose to add on to your policy. These can include roadside assistance, excess free windscreen cover, and courtesy car hire, and generally cost just a few dollars extra each month.


Decide whether these optional extras are worth the investment after taking into account your own personal circumstances. For example, someone who is comfortable using a set of jumper leads or changing a car tyre on the side of the road might choose to save a little money by not opting into the roadside assistance extra. However if you would be uncomfortable with such tasks, roadside assistance is probably worth paying a little extra for.


How can you get cheaper car insurance?

When it comes to saving money on car insurance, one of the main levers you can pull to get a cheaper premium is the amount of your excess.


Your excess is the amount you must pay towards the cost of an insurance claim and generally varies from $400 to $1000. An excess of approximately $500-750 is the default for most car insurance companies in NZ, and also the most popular with customers. Choosing a higher excess will result in cheaper car insurance on a monthly or annual basis, but will mean you need to pay more should you need to submit a claim.


Other factors which influence how much car insurance costs aren’t as easy to change as your excess. These factors include where you live, where the car is parked, the type of license you hold, and your driving history in regards to claims and/or speeding tickets.


What you can influence, however, is the car you are driving. In general, an older car from a brand such as Toyota, Honda, or Mazda will be cheaper to insure than a brand new vehicle from brands such as Audi, BMW, or Mercedes. This is a general rule and doesn’t apply in all cases, as a 2019 Honda 2.0ltr turbo may cost more to insure than a 2005 BMW 1.6ltr.


As you can see there is no one-size-fits-all answer for how much insurance will cost, and that’s why it pays to get a car insurance quote before purchasing a new vehicle - you’ll know exactly what your ongoing insurance bill is going to be.


Getting a car insurance quote

Finally, before buying a car many of our readers like to use a car insurance calculator of some sort to figure out what the potential purchase may cost them in insurance.


These days quick calculators to get an estimate aren’t really necessary, as you can get a quick online quote which will show you your actual price for the car you are looking to purchase in just a few minutes.


All you’ll need is the vehicle details (note down the number plate if it has been registered), and some personal details such as where you plan to park the car, and your own driving history (as these all play a part in generating your car insurance quote).


If the vehicle hasn’t been registered, you’ll still be able to get a quote using the cars make and model. Depending on the model of car, you might also be asked to narrow down to the exact vehicle you are looking at buying using details such as engine size, and whether you are looking at the petrol of diesel version of the vehicle.


When browsing these details are readily available from all car listing pages


You can easily get an instant quote from our insurance partner Cove here:

Auto Trader New Zealand