Buying a car or a van in New Zealand

If you buy a vehicle, you will need insurance, although it is not legally required in New Zealand. Insurance costs are generally more expensive for drivers under 25 and can depend on your driving history and the type of vehicle you own.

You generally have 4 options:

Full cover standard

This type of insurance covers you for accidents, theft, fire, vandalism and weather damage. It also covers you in the event of an accident involving a third party. This is the most expensive type of insurance, and is particularly useful for new vehicles or those that are genuinely valuable.

Agree cover

This type of insurance covers you in the same way as standard full cover, but you and your insurance company must agree on the value of your vehicle (based on market prices) and the maximum amount of cover.

Third party, fire and theft

This type of insurance covers you against fire and theft and insures you in the event of damage to a third party’s vehicle.

Third party

This type of insurance covers you for damage you may cause to other vehicles. This is the cheapest option, but it does not cover repairs to your vehicle.

We recommend that you at least take out Third Party insurance, so that you don’t have to pay a fortune if you damage someone else’s car. Note that even the smallest accident can cost you a lot of money!