5 Reasons Why You Need Car Insurance

Although car insurance isn't compulsory in New Zealand, it's highly recommended. Even if you don't use your car all that often, you still won't want to go without basic protection that could help you avoid a financial nightmare down the road.

If you're on the fence about taking out car insurance, here are 5 reasons why you shouldn't delay any longer.

#1 - You hit someone's car

If you're in an accident and it's deemed you are at fault, you could find yourself in a difficult financial position as you will be responsible for paying out any injuries or damage. You don't have to take out the most expensive car insurance policy to cover yourself for the worst case scenario - even an entry level Third Party Property Only policy at Youi will pay up to $20 million in legal liability if you cause damage to someone else's property.

#2 - Drivers Are Unpredictable

You may be the best driver the roads have ever seen, but what about the others? From swerving lanes without signalling to tailgating and every missed rear-view check in between, drivers are unpredictable. Without the right car insurance policy, you could find yourself in an unfortunate collision resulting in hefty repair and medical bills.

#3 - Theft happens

According to The New Zealand Automobile Association, car theft is a big problem in New Zealand that result in $110 million a year in insurance costs alone. If your car is stolen, it's not just the vehicle you'll be without - it's also the contents. Third Party Fire & Theft is an important policy to have if you want peace of mind that you're covered for the unsafest of times.

#4 - To buy that new car

If you're in the market for a new car and decide to lease or finance one, you may be required by your lender to have some level of car insurance before they release the funds. Check with your lender if this is the case prior to taking out a car insurance policy to ensure you select adequate coverage.

#5 - People borrow your car

If other people tend to drive your car, it could put you at extra risk for a collision, particularily if they are an inexperienced or learner driver. Depending on your insurer, you may need to list them on your policy so that they are covered for any necessary medical coverage in the event of an accident. 

If you're still weighing up whether or not it's worth taking out car insurance, ask yourself if you can afford to be without it. If you'd like to discuss what kind of coverage best suits your needs, give us a call and we'll help you get started.

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