Four Steps for Buying a Car in New Zealand
The foursteps of buying a car in New Zealand.Make sure to check all our articles on the subject.
Decide what type of car insurance cover you want
There are three types of vehicle insurance you can get:
- Comprehensive covers the cost of damages to your own vehicle, as well as damages to any other vehicle involved.
- Third-party covers the cost of damages to just the other vehicles involved in the accident.
- Third-party fire and theft as well as the third party cover explained above, third-party fire and theft also cover your own vehicle if stolen or damaged by fire.
Some companies cover the costs of accidental injuries and death involved in a vehicle accident, however, accidents are usually covered by the New Zealanduniversal cover scheme, ACC, which you can read more information in What is ACC andEmployee Accident Cover?For more information on the difference between comprehensive and third party, check out our guide to How Car Insurance Works in New Zealand.
Choose who you want to insure
By “who” we mean you can insure either a driver or a vehicle.
Insure the driver
If insuring a driver, that usually means that that driver is insured when driving any vehicle in New Zealand. Then you can add named drivers to that insurance at an extra cost.
Insure the vehicle
If insuring a vehicle, it means anydriver ofyourvehicle holding a valid driver license isinsured. You don’t have to worry about switching drivers on a long road trip. You can read more about what a valid driver license is in How to Drive in New Zealand.
Choose a duration of cover
Not all backpackers travelling in New Zealand stay for a whole year, so it’s ideal that there are some New Zealand vehicle insurance companies out there offering cover for a shorter duration than the usual one year. Companies like BackpackersMotorInsurance.comoffer insurance in intervals of three, six, nine and 12 months, keeping prices lowerbyonly paying what you need to.
Choose a vehicleinsurance company
Once you have an idea about what type of cover you want, who you want to insure, and the preferred duration of the insurance, this may make choosing an insurance company a little more straightforward.For third party and third party fire and theft cover, BackpackersMotorInsurance.com keeps their prices to a minimum, while allowing you to insure your vehicle so anyone can drive it. You can also take advantage of the different durations of cover.Another great option is the option below from Frogs-in-nz. They offer a comprehensive insurance and you can get a 5% discount just by using the discount code: BPKRGUIDE in the “promo code” field. You’re welcome!
It’s always smart to make a comparison between insurance companies by getting a quote from a few different companies. Additionally, look at the excess you would have to pay in the event of paying for damage. Higher excess usually means cheaper insurance prices, while lower excess may mean expensive car insurance. For more information on excess and other technicalities of understanding your car insurance, visit How Car Insurance Works in New Zealand.
What you need to buy vehicle insurance
Once you have decided what lovely car insurance you want to purchase, you’ll need to provide some information about the driver and the vehicle. The information asked for by the insurance company may vary depending on what type of cover you are getting, but generally, this is the information you need to have on-hand:
- Driver’s driver license
- Driver’s passport you may need your passport number if buying online
- Year, make, model and registration number of the vehicle
- Visa or MasterCard to pay online or just your debit card will do if paying in a store.
Ready to hitthe road
Now that you have followed all the steps of our Buying a Car in New Zealand Step by Step, you are ready to hit the open road! Here are a few more articles to help you and your vehicle during your road trip.