What is Motor Insurance?
Motor Insurance provides cover for physical loss, damage or theft of your vehicle and damages you do to other vehicles and/or property. In New Zealand, it is not compulsory to purchase motor or vehicle insurance. Nevertheless, most people are cautious about the possibility of being in a road accident which can result in physical injuries, damage to their own vehicle, and third-party damage to other vehicles and/or property. There are various types of cover available for motor vehicle insurance, from Comprehensive cover, third-party fire and theft or third party only cover.
Comprehensive cover provides protection for your vehicle and damages you do to other vehicles and/or property. Third-party fire and theft cover provides protection for your vehicle from fire and theft-related losses and for damage you do to other vehicles and/or property. The third-party-only cover protects you against damage you do to other vehicles but does not provide any cover for your vehicle.
Why is Motor Insurance Important?
Motor insurance is important as it can protect you against physical loss, damage or theft of your vehicle and damage you do to other vehicles, depending on the type of motor vehicle insurance you purchased. In the event of a claim, the insurance company can either pay your vehicle market value, which is what the vehicle is worth prior to the loss or damage, or the vehicle agreed value, which is the vehicle value you agree with the insurance company at the start of the contract and at each renewal.
What does Motor Insurance Cover?
There are three different types of vehicle insurance. Comprehensive, third-party fire and theft and a third-party only cover.
- Comprehensive vehicle insurance cover offers protection for your vehicle and damage you do to other vehicles and/or property.
- Third-party fire and theft cover provides protection for your vehicle from fire and theft-related losses and for damage you do to other vehicles and/or property.
- Third-party vehicle insurance only covers damage you do to other vehicles and/or property but does not provide any cover for your vehicle.
Protect your vehicle and yourself. Our authorised representatives at Insurance Advisernet will work with you to find the best insurance package for your needs. Schedule an appointment with us, and we’ll gladly answer your questions and concerns.
Frequently Asked Questions
What is the meaning of motor insurance?
Motor insurance (or auto insurance) is a type of insurance that provides cover for physical loss, damage or theft of your vehicle and damage you do to other vehicles and/or property.
What is the cheapest kind of auto insurance in New Zealand?
The cost of auto insurance in New Zealand differs among insurers and the cover option selected. The premium is determined by a number of factors, including the make, model of the vehicle, the year manufactured, your age, and other criteria. It’s always best to look for an insurance cover that covers your needs and risk exposures at the price you can afford.
Which are the three types of motor insurance?
The types of motor insurance are:
- Private Vehicle Insurance
- Commercial Vehicle Insurance
- Motorcycle Insurance
Why do I need motor insurance?
Motor insurance can protect you from the financial costs needed to pay for a replacement vehicle and compensation for third-party damage to vehicles and/or property when your vehicle is involved in an accident with another motorist.
