Do you need Car Insurance in New Zealand?

In New Zealand car insurance isn’t compulsory like it is in the UK and throughout Europe. That being said, just because you don’t need insurance, doesn’t mean you shouldn’t.

If you’re involved in an accident and you are at fault you could find yourself in quite a financial difficulty.

Rego and ACC

The vehicle registration fee (or rego as it is more fondly called here) is like road tax in the UK but a large portion of the fee collected goes towards ACC (Accident Compensation Corporation).

ACC provides support and compensation for personal injuries, i.e. a car accident, whether you are at fault or not.

It doesn’t cover the cost of vehicle repair for either party or any other costs associated with a car accident, which can get expensive very quickly.

How much does car insurance cost in New Zealand?

Coming from the UK, we’ve found car insurance prices in New Zealand to be very agreeable, cheaper by about a third. In general it is a lot cheaper to keep a vehicle in NZ.

Our fully comprehensive insurance policy with $300 NZD excess, cover for a $7000 NZD car costs $350 NZD per year. Paying for insurance yearly is always going to be cheaper, small administration and interest charges bump up the insurance premiums by as much as 30%.

Most banks also charge for direct debit set up cost’s as well, so it is much better to pay it yearly.

Are no claims discounts transferable to New Zealand?

Car insurance companies in general will accept international no claims bonuses earned on cars outside of New Zealand from countries like the UK and USA. It’s strongly recommend that you bring proof of no claims with you.

Getting car insurance in NZ

Insurance quotes are fairly straightforward, insurers don’t tend to ask half as many questions as you might expect if you are from the UK or USA. Most insurance providers give a quick quote via their websites, these are then finalised over e-mail or telephone call with the insurance company

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