Comprehensive or third party?

Which is right for you?

There are three common levels of car insurance in New Zealand: comprehensive, third party fire and theft and third party.

Exactly what each of these cover depends on the insurer. Generally the broader the cover, the more expensive it will be.

Third party:

Only covers damage you cause to someone else’s car or property.

Third party fire and theft

Third party protection but also covers you if your vehicle is stolen or damaged in a fire.

Comprehensive

The broadest protection, covering third party, fire and theft, and accidental damage to your car, no matter who is at fault.

Three different levels of cover in action

You go to a concert with a group of friends. You make the rookie mistake of not paying for secure parking. After a great gig, you leave the stadium and find your car is missing. Two hours later, police find the car in a mall parking lot with broken locks, ignition and windscreen.

Third party:

You’re not covered for any damage to your car.

Third party fire and theft:

You’re covered for the repairs your car needs. You may also have some cover for rental car or transport costs if your car is not driveable.

Comprehensive:

You’re covered for repairs, rental and transport costs as well as lost or stolen keys and remotes.

But which one is right for you?

When picking the right cover for you, it’s helpful to look at your situation, including how you use your car, where you keep it and how expensive it is.

Comprehensive protects against accidental damage to your car while the other options don’t – something to consider if your car is expensive or would cost a lot to repair.

However, if you’ve inherited your Dad’s old bomb, you might be able to save some money if you pick one of the third party options that don’t offer as much protection for your car, but you're fully covered for damage you cause to other people's cars or property.