How To Get Cheaper Car Insurance?

car insurance

Car insurance in New Zealand is not a legal requirement, unlike in other countries across the globe.

Does that mean you can roam around the streets without ever worrying about insurance premiums?


Is it advisable not to get insurance?


Although you don’t need to buy car insurance in New Zealand, you should seriously consider getting some form of coverage to protect yourself, your vehicle, and the other party’s life and property. The least you can do is get third-party insurance coverage, so in the event of an accident, you don’t have to pay the damage cost for the other vehicle from your pocket.

Ideally, you should get a comprehensive insurance plan so that not only are others covered but your vehicle is also covered in the policy. This way, you save money in the long run and drive on the roads tension-free.

But before you get car insurance, you should consider the premium you would pay along with other things that would influence that premium. Here are a few methods you can buy cheaper insurance.

1. Compare the Rates

The rule of thumb, when it comes to buying anything in this world, is to compare the prices of various sellers. If you follow this practice, you will always turn out the victor. Luckily, the same is true when you are comparing the rates of different insurers.

You should compare the market premium prices, choose the best policy for your needs and then make a final decision.

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We have been helping the Otago, Southland, and Canterbury regions for over a decade now with recycling their unwanted vehicles.

2. Increase the Amount of Voluntary Excess

If you want to get a lower premium rate, you could increase the amount of voluntary excess and have your wish fulfilled. The voluntary excess is the amount you must pay from your pocket in the event of an accident. If you volunteer to pay more, the insurer would reduce the monthly premium.

This method works best if you are generally a safe driver and rarely get into accidents.

3. Annual Payments Instead of Monthly

Several insurance companies offer you to choose from yearly or monthly premium plans. If you have that luxury, you should choose the annual plan instead of the monthly, one because the insurer charges an interest rate over 12 months. If you pay upfront, you can get rid of that interest and end up paying less in the long run.

4. Stay Away from Modifications

The further you stray away from a vehicle in genuine condition the more you will have to pay in premiums. Insurers do not like people making unnecessary modifications to their vehicles as that increases the risk of accidents. So, you should avoid big rims, tinted windows, aftermarket sound systems and more.

5. Consider Telematics Insurance

Telematics insurance is the best way to insure your vehicle. This type of insurance uses cutting-edge black box technology to monitor and record your driving habits. It measures how hard you brake, how aggressive you are with the throttle etc.

If you are light-footed and generally a safe driver, the technology would pick that up and the insurer would offer you a low premium rate. On the other hand, if you are a rash driver, the telematics technology would inform the relevant authority and that would result in a higher premium.


If your vehicle is damaged beyond what the insurer can cover, you should call a car removal service, that gives cash for cars and sell your vehicle to one of the most reputable car wreckers in New Zealand.

You get a good rate at the scrap yard anyway and you don’t have to deal with insurers!


Got a Vehicle that you want to get rid of?

We buy unwanted and scrap vehicles and pay up to $12000 cash.
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