If you're considering driving a car that isn't insured, there are some risks to keep in mind - like liability costs and repair costs if you get into an accident. Here we break down what you need to know about car insurance before you get behind the wheel.
Can I drive my car without insurance?
Legally, there's nothing stopping you from driving your car uninsured. That being said, there can be serious consequences to not having insurance - like a financial impact to you if you were to get into an accident. Even if you're a confident driver, there's always the risk of mishaps when you're out and about.
Can I drive someone else's car without my own insurance?
If someone has given you permission to drive their car and it's insured, it may be covered if you got into an accident. Before you drive away, it's important to check with the owner whether their policy covers you if you cause an accident or if someone crashes into you.
With Tower's Comprehensive car insurance, we provide cover for almost anyone driving the insured car as long as they have the owner's permission. This is unless the owner has chosen to exclude cover for drivers under 25 years old.
Can I drive someone else's uninsured car with my own insurance?
Even if you have personal car insurance - with your own car listed on the policy - this won't cover you if you drive a different, uninsured car. The car that's listed on your Certificate of Insurance is the only vehicle that's insured.
Can I let anyone drive my car?
If you're a Tower car insurance customer, and someone has your permission to drive your car, we'll still provide cover up to the limits in your policy. It's important to note that you must tell us if anyone becomes a new regular driver of your car, or if any person covered by this policy is charged with a criminal or traffic offence. You can add named drivers online in My Tower or call us on 0800 379 372 and we can help you out.
What happens if I drive an uninsured car and I get into an accident?
If you happen to have an accident while driving an uninsured car, this can cause complications that could be quite expensive for you.
If you hit an uninsured car:
Having a collision with another uninsured car could be quite the headache! Any repair expenses or liability costs you owe to the other driver will have to come out of your own pocket. Because neither party has an insurance company to act on your behalf, you'll be on your own trying to source funds to pay the other driver. Or vice versa - the driver who was hit may have difficulty getting money from the person who was at fault.
If you hit an insured car:
In this scenario, the insured car's insurance company will likely cover their repair costs, so the insured car's driver will not be left out of pocket, which is great news for them - but it's still not good news for you. The insurance company will send you the bill, which you'd have to pay on top of your own car's repairs.
Read more on what to do if you get into a car accident.
If your uninsured car is stolen:
Let's say you leave your uninsured car parked on the roadside and it gets stolen. It'll be up to you to buy a replacement, so you need to consider whether you can front up that cost. On the flipside, if you have Tower Comprehensive or Third party fire and theft cover, we'll help you out with a replacement car (up to your agreed or market value).
To help reduce the risk of theft, here are some ways to safely park your car.
Is it illegal to not have car insurance in NZ?
Unlike many other countries, it's not a legal requirement to have car insurance in New Zealand. Anyone can buy a car and drive away (provided you have the appropriate driver's licence).
While having insurance is not compulsory, it's highly recommended to have at least Third party insurance to cover the basics.
Cars under finance
If you bought a car under finance, keeping it insured with Comprehensive cover may be one of your loan conditions - make sure you check this. It's easy to get a quote online before you drive away in your brand-new set of wheels.
Rental cars
In New Zealand, rental car companies are required to provide a standard level of car insurance to cover their fleet, which will be included in your rental fee. But if you were to have an accident, you'll likely have to pay the excess. For extra peace of mind, the rental company may offer extra cover options to choose from.
Is my car still insured without a WoF in NZ?
At Tower, we highly recommend you keep your Warrant of Fitness (WoF) up-to-date to ensure it's as safe and road-ready as possible. But if you were to have an accident and your WoF was expired at the time, this wouldn't necessarily mean we'd decline you cover. At claim time, we'd look into whether your expired WoF (and therefore lack of maintenance) contributed to the cause of the accident.
Leaving your car uninsured, whether short-term or long-term, means there are some risks. You'll need to weigh up these risks and decide whether you can handle significant financial costs, or the loss of your car without a replacement, if you were to get into an accident or if thieves come knocking.
To help protect your set of wheels and enjoy peace of mind while on the road, it's easy to get a quick car quote online. We've got options to suit different needs and budgets.
The links we provide to third-party websites are for your convenience and do not constitute any endorsement or authorisation by us. The information provided on this page is general in nature and is not intended to be professional or legal advice. Tower does not accept any liability for the accuracy or content of information on this website that belongs to third parties or on any third-party website.
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