Assurant has 3 car insurance options to choose from. Being the comprehensive Full Cover; Third Party Fire & Theft; and Third Party Only. Find out more about Assurant’s car insurance policy options.
Don't leave yourself financially short by being underinsured.
So here’s what you need to know to make the best decision.
Understanding Third Party Car Insurance
Third party only car insurance is a basic form of coverage that protects you financially if you're responsible for damaging someone else's vehicle or property in an accident. However, it does not cover any costs to repair your own car.
Whilst third party fire & theft covers the basics of third party insurance, it also protects your car from fire damage or theft, providing an added layer of security.
Factors to Consider Before Switching
If you're wondering whether third party car insurance is the way to go, consider the following:
1. Value of Your Vehicle
- Third party car insurance is generally better suited for older, low-value vehicles. If your car isn’t worth a lot, the cost of comprehensive coverage might exceed the value you’d get reimbursed for in the event of an accident.
- For newer or high-value cars, sticking with comprehensive car insurance is usually the better option since repairs can be expensive.
2. Driving Habits
- Do you frequently drive long distances or in high-traffic areas? Higher exposure to risk may make comprehensive coverage more worthwhile.
- On the other hand, if you only drive occasionally or in areas with low traffic, a third party policy might suffice.
3. Your Budget
- Third party car insurance is typically more affordable than comprehensive policies, making it appealing for those on a tight budget.
- However, consider whether you could shoulder repair or replacement costs for your own car in case of an accident. If not, comprehensive car insurance will offer better financial protection.
4. Who Else Uses Your Car
If multiple people, such as inexperienced drivers or young adults, borrow your car, the chances of an accident may increase. Comprehensive insurance can offer more peace of mind in these situations as long as those drivers are insured to drive the vehicle.
5. Risk of Theft or Fire
If you live in a higher crime area or park your car on the street, the added protection of third party, fire and theft coverage might offer the ideal balance between cost and security.
Pros and Cons of Third Party Car Insurance
Pros:
- Cheaper premium rates compared to comprehensive cover.
- Covers damage you cause to other people’s property, which can often involve significant costs.
- Ideal for older vehicles where comprehensive premiums may not be cost-effective.
Cons:
- Does not cover damage to your own vehicle.
- No protection for theft or fire unless you opt for third party, fire and theft insurance.
- May leave you financially vulnerable in a serious accident.
When Should You Stay with Comprehensive Full Cover Car Insurance?
It’s worth sticking with comprehensive car insurance if:
- Your car is new, expensive, or still under financing.
- You want coverage for situations beyond just accidents (e.g., theft, vandalism, or natural disasters).
- You value having peace of mind knowing you're covered in most scenarios.
When Does Third Party Car Insurance Make Sense?
Third party car insurance might be the best fit if:
- You drive an older car with a low market value.
- You’re confident about managing repair costs for your own car out of pocket.
- You’re looking for a more affordable option to meet legal driving requirements while protecting other road users.
The Bottom Line
Switching to third party car insurance in New Zealand can make sense if you’re driving an older, low-value car and are looking to save on premiums. However, before making the switch, it’s crucial to properly assess your financial situation, driving habits, and the value of your vehicle. Comprehensive car insurance offers greater peace of mind for those owning more expensive cars or driving more frequently.
You want to ensure that you are comprehensively insured should the worst happen. Assurant’s Full Cover car insurance also has options for 24/7 roadside assistance, windscreen cover and more – all backed up by a specialist Accident Management team who can provide you with a pick-up and delivery service, courtesy car, and quality repairs that are guaranteed for the life of the vehicle.
Check out Assurant’s Car Insurance Policy Wording to learn more about Assurant's Car Insurance cover and don’t hesitate to contact Assurant if you have any questions.
Get an Assurant car insurance quote today, to find out how quick and easy it is to insure your car with Assurant.
Note: This a general guide designed to assist you to assess some of the key considerations. It is not advice and in all cases the actual terms of the applicable policy apply.