There are two types of car insurance, ‘Comprehensive insurance’ and ‘Third-party insurance’.
Comprehensive car insurance specifically covers you if your car is stolen or damaged in an accident. It also pays out to other people if your car damages their vehicle or property.
Third party car insurance only pays out to others but does not cover your own car. This means if your car is stolen or involved in an accident, anyone affected other than
you will be covered. What influences the cost of Car Insurance?
Car insurers take into account a lot of data to decide what price to offer, including:
Your car accident history
Your car model and year
Where your car will be stored
Whether your car will be used for work purposes, or for personal
The riskier you are to an insurer, the higher the cost of your car insurance premium. If you are a middle-aged woman with no accident history driving a Toyota run-around to and from work in Dunedin, you’ll pay less than a newly licensed ‘boy racer’ with a modified Mitsubishi in Auckland. If you can prove you are low risk by being accident-free and having secure parking for your car, you will save more.