Every once in a while, we can have mishaps and misfortunes, often through no fault of our own. Whether someone gives your car a nudge at the traffic lights, or a thoughtless thief makes off with your pride and joy, having car insurance is something that your future self will always thank you for.
This blog breaks down (no pun intended) the highest-level of car insurance you can have in New Zealand - comprehensive car insurance - including what it covers and why you need it.
What is comprehensive car insurance?
As the name suggests, comprehensive car insurance is the complete package, covering you for the most whoopsies.
You might be thinking, "Do I really need comprehensive? I'm a good driver, what's the worst that could happen?"
Whether you're the most confident driver in the world or not, a comprehensive policy offers peace of mind that you're covered against a wide range of incidents, like damage in an accident (no matter whose fault it was).
What does comprehensive car insurance cover in NZ?
While comprehensive policies can differ across the different insurance companies, here are the core benefits that are typically universal.
Damage to your car
Covers damage to your car - whether caused by you, another person, another car, a natural disaster, or a fire.
Damage to other cars or property
If you damage another person's car or property, it covers your legal liability to repair it.
Damage from an uninsured car
Is the other party uninsured? Don't worry. Insurers will still repair your car if it's damaged by an uninsured one.
Additional benefits of comprehensive
Some perks you may not have thought of, but are really handy to have:
- Towing: At Tower, our comprehensive policy covers the towing of your car to the nearest repairer or safe place if it's undriveable after an accident.
- New vehicle replacement: If you insured your car with us from new, and it becomes a total loss within the first two years, we'll replace it with a new car of the same make, model and variant (subject to current availability)
- Rental car cover: If you've chosen this optional benefit, we’ll cover the cost of hiring and insuring a similar car (up to $1,000) if your car is stolen or undriveable after an accident.
This is a summary only. For all of these benefits, please read the policy wording and cover documents to understand the terms, conditions, excesses, limits, and exclusions that may apply. Cover is subject to current underwriting criteria.
Optional benefits
Tower's comprehensive cover comes with optional benefits that you can choose from. These include windscreen excess buyout (your windscreen is covered already, but this benefit means you won't have to pay an excess), and RoadWise®, our 24/7 roadside assistance service.
What about cars used for business?
If you use your car for business, we have a specific commercial vehicle policy which has comprehensive and third party cover options.
What is not covered by comprehensive car insurance?
There are some standard exclusions in Tower's comprehensive policies. They include but are not limited to:
- Mechanical failure: This isn't covered, unless it occurs as a result of an accepted claim.
- Some modifications: If you have any accessories or modifications installed on your car, you need to tell us, as some of them are not covered by comprehensive insurance (such as suspension changes, engine modifications and gearbox upgrades). Any accessories or modifications will need to be listed on your Certificate of Insurance to be covered, and they may increase your premium.
- Stolen personal belongings: If your car is stolen and there were personal belongings inside, these would be covered by contents insurance, not car insurance. We've got three levels of contents insurance to choose from, so get a contents insurance quote here.
It's important to be aware of all the conditions you're not covered for. Make sure to read the policy wording and cover documents to understand the terms, excesses, limits and exclusions that apply.
Comprehensive vs. Third party insurance
While comprehensive insurance provides the broadest cover, third party insurance is the minimum level of cover you can get. It covers damage your car causes to other people's cars or property, and damage to your car caused by an uninsured car (up to $4,000 with Tower).
You don't need a separate third party policy if you already have a comprehensive policy. Third party cover is already included within comprehensive.
Does comprehensive insurance cover me to drive another car?
Your comprehensive policy only covers the car listed on your Certificate of Insurance. If you drive a different car, it won't be covered unless the owner has their own comprehensive policy and this covers you. Remember to check with them before you drive away.
Learn more about what could happen if you drive an uninsured car.
Where is the cheapest comprehensive car insurance?
There's no definitive answer on where to find the cheapest car insurance in New Zealand. Each insurance company bases their pricing on factors they've determined to be most important. What's more, they can price the exact same types of cars very differently, or may not even insure them at all!
Here at Tower, your car premium is affected by these kinds of factors.
Keep in mind that the cheapest insurance isn't necessarily the best option for you. When shopping around, make sure you get to know the benefits of the different policies and read the policy wordings.
Ways to save on comprehensive car insurance
So, you've opted for the highest level of cover with Tower - nice one! Here's how you could save money on your car insurance premium.
- Optional benefits: Perhaps you don't need all of these. Choose which ones make the most sense for you.
- Excess: If you're okay with paying a higher excess in the event of a claim, you could opt for a higher excess which may reduce your premium.
- Be a safe driver: If you end up with a few marks on your record (such as dangerous driving or DUI) this has the potential to impact your premium.
Learn more about ways to save on your insurance.
How to make a claim on your comprehensive car insurance
It's straightforward to make a claim in My Tower, our online self-service portal. If you don't have a My Tower account, register here now. We'll need information such as any contact details (including name, phone number, email address), the police file number, and the vehicle registration number of anyone involved. If you don't have them on hand yet, that's okay, you can still go ahead and make a claim.
It's incredibly helpful to have comprehensive car insurance in the event things go wrong and you need to make a claim.
If you're an existing Tower customer with third party fire and theft, or third party only cover, it's easy to upgrade your cover to comprehensive in My Tower.
Otherwise, if you're new to Tower, simply get a quote for comprehensive cover here.
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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