cornerofsilence

I would like to find out about car insurance in NZ.

Do you have anything similar to direct line?
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Don

Car insurance is cheap in NZ, maybe less than half as much in the UK.

Tayberry

I was of the understanding it's not actually necessary to have car insurance.....scary :scared:

Sheenie

Hi
I'm sorry but I don't understand. How can you not have to have any car insurance? What happens if you have an accident?

Don

You pay for/ get sued for the damage you caused and medical costs & compensation are paid for by the state.

Kiwipaul

One of the beauties about NZ is that their is no if it moves sue it as regards to personnel injury as it's alll covered by the state(ACC). Thats why so many adventure sports happen in NZ as their is not the same ability to sue if you stub your big toe doing something.

So if you cause a car accident and you have no insurance you can only be sued for physical damage caused to the other car or property as the gov carry the personnel accident insurance. They also don't make million dollars payouts which for the people injured is bad news but for the majority it's good news.

Tayberry

After submitting my original post to this thread, I double checked with my Kiwi colleagues regarding the situation with car insurance. Car insurance is not compulsory. It sounds a total nightmare. My Kiwi colleagues agree this situation is bad and should be brought in line with other countries, such as the UK, as there are a multitiude of problems encountered if one or both parties are not insured. For example, if you are insured and the other motorist isn't and they caused the accident, you might have to pay upfront for the immediate repair of the car and the insurance company will later release the money, once the person responsible for the accident has been contacted (because they have to pay the costs to your insurance company!!!-is this making any sense? probably not!!) However, my colleagues were telling me some people have been known to give fake addresses so in situations as described before, you might never get your money back :scared: I do hope this isn't incorrect what I'm saying. I'm sure others will kindly keep you right.

The really really scary thing is NZ though with regards to the issue of insurance and being able to opt out of it, is that 15 years olds are allowed to drive, under certain restrictions. My colleagues totally admitted the roads are deathtraps at times because of these policies.

sunshine_and_rain

Well, it all true - and you are right - SCAREY!! Car Insurance is not compulsary. Driving here in NZ is like taking your life in your hands as well at times. There are young kids - yep 15 year olds - driving around in Subaru Imprezas here - now THATS scarey let me tell you! However, most people with a conscience do have car insurance. My family and I actually were nearly run off a mountain side road by 2 kids hurtling around a blind corner at high speeds. Whenever we talk about it as a groups when friends get toegther we all agree it should be complusary and I am sure sooner rather later it will be. It is much cheaper here - and thats the way it should be NOT like the UK where the extortionate insurance costs are beyond a joke and are simply ripping off the honest hard working person - the UK has gone to the other extreme of NZ. Generally though - there are far less cars on the road here, and its more of a pleasure to drive when you are not stuck in traffic jams for hours on end or spending all your life stuck on a motorway. Road deaths are the biggest cause of death here though. To be fair again the Govt. work hard with advertising campaigns etc to try and highlight the risks and the death toll. The other thing that happens here that has virtually topped at home (UK) is drink driving - still happens a LOT here. All in all though I still feel fairly safe on the roads but would have to be honest and say I did feel safer in the UK even with a higher speed allowance there. There are heaps of Insurance companies here, all the banks do it - and usually there are icount deals if you have all your insurances with one company. My husband drives a Toyota Landcruiser, he's 35 and it costs about $700 a year to insure fully comp - just to give you an idea. Hope some of that helps!

binman

Yes it does all sound very bizarre but it seems to work. What generally tends to happen is that if you are hit by an uninsured driver and you personally had full insurance then the insurance company would fix your vehicle [usually without loss of no claims discount] and then pursue the other driver for costs, sometimes through the courts. The whole system it appears is up for debate again, judging by the papers over the past day or two. What is rather refreshing is to live in a country that is not obsessed with litigation although that sadly I feel is changing. Cheers binman

shepslady

Sadly it is not compulsory to have car insurance in NZ which to me is absolutely crazy but thats the way it is. There is also something called third party insurance which many people have. That will cover the cost of damage to the other persons car but not yours. Sounds strange I know but for some low income families with older cars etc its at least affordable & makes more sense than having no coverage at all. I personally would like to see insurance compulsory for all vehicles & at the very least make third party insurance compulsory. Full coverage in NZ is affordable, unlike some countries where it is very high, NZ rates are quite good. With all the young drivers on the road I for one would not take the risk of having no insurance. As for any injuries caused by accidents etc you are covered by ACC which is a good thing I guess. There is no suing options in NZ & I hope it stays that way. From what Ive seen here in The US I would hate to see NZ go that way. It seems that you can sue anyone for the most stupid thing over here & Id hate to be on the wrong end of one of those claims. There are so many companies offering car insurance so & all rates vary greatly so like most things it does pay to shop around.