Car insurance
How to stay safe while driving

First to say that 3rd party insurance is not compulsory in New Zealand. That´s why too many people do not pay it. Whether it's local or tourists, it is always a incredible irresponsibility and stupidity.

Car insurance yes or no?

There is only one correct answer and it is YES. Uninsured car is a sign of big stupidity and utter ruthlessness. Crash in uninsured car cad destroy your life as well as the life of others involved.

Why is 3rd party so important?

  1. If you cause an accident 3rd party will pay for you 
    You will pay only excess fee specified in the insurance contract (usually 200-500 NZD). You must realize that new cars in New Zealand can easily cost around 50.000 NZD, so if you crash somebody while you are not having 3rd party insurance you might be in serious troubles.
    Even more serious than damaged car can be injuries. If you injure somebody the costs of treatment and permanent consequences may be extremely high.
  2. If you get crashed by somebody, who is not having 3rd party insurance your insurance company will pay you out.
    This is actually pretty common situation. I don´t want to generalize but lot of Maori people driving with uninsured cars and if they crash you and you are not insured, your only hope is usually the trial. And I am sure you won´t spend lot of time and money on long trial.
    If you have 3rd party insurance, you need the offender to claim his fault. It may be sometimes difficult as well, but it is much easier than taking the case to the court.
  3. And there is also a humanity point of view.
    If you crash somebody and cause him really serious damage while not being insured, you probably won´t be able to pay him out even if you want to. So you actually cause him damage twice.

Theft insurance?

I would say yes again. The price difference between insurance with or without theft is pretty low.

For example AA Insurance offers "3rd party, theft, fire" insurance. Even if you consider New Zealand having low criminality, there are 50 000 cars stolen and robbed every year. And many backpackers can´t even be bothered by calling police. 

3rd party, theft & fire covers 3rd party damage, stolen car with your belongings inside and fire damage. It doesn´t cover your belongings stolen from the car.