Getting you ready for the road ahead
Whether you're buying your first car or helping a young driver get behind the wheel, understanding car insurance is an important part of driving with confidence. We’re here to make it simpler, with helpful guides, commonly asked questions and a breakdown of your cover options.
Understanding the basics of car insurance
Car insurance is a great way to protect yourself and your car against unexpected damage or loss, such as theft, damage to your car or damage you cause to someone else’s car or property.
If you're new to car insurance or looking to refresh your knowledge, here’s a good place to start. This series explains the different types of car insurance available in New Zealand, how to choose the right cover for your needs, what you'll need to set up a policy, and the factors that influence your premium.
The benefits of car insurance
Choosing your car policy
Setting up your car insurance
The cost of car insurance
Choosing your insurance cover
A car insurance policy is an annual agreement between you and your insurance company. You agree to pay a premium each year and an excess if you make a claim, and your insurance provider agrees to pay for damage when you make a claim, up to the limits that apply to the cover type you've chosen.
Here are three key insurance terms you’ll come across when getting a car insurance quote:
Agreed or market value
This is the amount your insurer will pay for your car after an event, minus your applicable excesses and any deductions.
Excess
The contribution you’ll make to the total cost of the claim. You’ll pay this when you make a claim.
Premium
A premium is the dollar amount that you pay for an insurance policy each year.
Understanding what you’re covered for
Whether you're adding a driver to an existing policy or taking out a new one, it's important to understand what you're covered for. At AA Insurance, we offer three types of car insurance cover.
Comprehensive Car Insurance covers accidental damage to your own car as well as damage you cause to someone else’s car or property.
Third Party Fire and Theft covers your car only if it’s stolen or damaged by fire. You'll also be covered for accidental damage to someone else's car or property.
Third Party doesn’t cover any damage to your car. It only covers the damage you cause to someone else’s car or property in an accident.
Deciding what car you’ll drive
Driving someone else’s car?
If you drive someone else's car, you could be added as a listed driver to an existing policy.
If you're going to be the person who drives it the most, you should be added as the main driver on the policy. Here are answers to four common questions about insurance cover.
Buying your first car?
If you're planning on buying your own car, you can take out a policy in your name, making you both the policy holder and main driver.
From choosing the model to finding one within your budget, the decisions you make may help ensure you buy a car that’s right for you. We’ve got a few tips to help you buy with confidence.
Getting road-ready with the AA
New Zealand driver licences explained
Getting a driver licence is an exciting milestone. Find out more about learner, restricted and full licences, including licence conditions and how to prepare for your test.
Getting your young driver road ready
Whether you're preparing to pass your test or wanting to grow your confidence, the AA Driving School offers lessons and practice tests to help you become a safer driver.
AA Membership for young drivers
Young drivers aged 19 and under can get Youth Membership for $50, with access to award-winning AA Roadservice, savings on AA Driving School, and over 45 Member Benefits and discounts.
