New Zealand car owners have a great selection of motor vehicle insurance companies to choose from, so it definitely pays to shop around to get the best coverage at the lowest price.
Your first priority is to figure out the amount of insurance coverage you need and then you can decide what you need in addition. If you seem to have had a lot of ‘fender benders’ in the past, or you commute regularly on a treacherous road, or other family members will be driving your car, then you should consider a more comprehensive insurance coverage.
If you already have vehicle insurance you should make a note of the coverage you have and how much you pay, so then you will be able to compare with new quotes. When you get a quote over the phone, make sure you request a fax or posted copy of the quote.
When discussing insurance options over the telephone with each company, don’t be afraid to explore all options relating to any discounts they may offer. Most insurance companies are happy to offer discounts to prospective customers with a good driving record, modern vehicles with safety features such as car alarm, ABS brakes, etc, certain occupations, affiliations and even age can be to your advantage when shopping for car insurance! Make sure you also find out about any No Claims Bonus discount scheme they have in place.
You will also need to check if the insurance company offers a ‘market value’ or an ‘agreed value’ policy. The difference between these policies is quite relevant as a market value policy only pays you what the insurance company thinks your car is worth at the time your claim is made (this is based on an independent valuation). However, with an agreed value policy, you and the insurance provider agree upfront as to exactly how much the vehicle is worth if it is stolen or written off.
Along with pay out queries, you will need to check what excess you will be expected to contribute when you make an insurance claim. Also, what is covered in the excess? For example, your excess can be affected by who is driving the car at the time of the accident, if your car was stolen, if you were responsible for the accident, if the car alarm wasn’t working on the vehicle, etc. If you pay a higher excess you can reduce your premiums.
Along with coverage and premium prices, you need to take into consideration the support and service you will receive from this company if/when you make an insurance claim. What kind of job will they do and are they a reputable and reliable insurance provider? Simple things such as providing a courtesy vehicle (paying for a rental car) while your car is being repaired, or complimentary towing and storage costs are all things that should be checked in the fine print of the policy.
Most importantly, make sure your insurance company covers your new purchase BEFORE you drive your vehicle off the car dealership yard!
As you can appreciate, there is a lot to consider when you are purchasing a used vehicle, which is why the professional and dedicated team at Mike Turfus MotorTraders are happy to assist in any way possible to ensure your car purchasing experience is as stress-free as possible!