If you live in Auckland, New Zealand chances that you do not have a car extremely slim. In New Zealand there are three major car insurance products.
Comprehensive car insurance
when your car as well as the car you had an accident with – covered by your policy. In the event the other party does not have insurance on their vehicle – your policy would cover the cost of repairs. In the event your car was “written off” due to the accident – your insurer would pay you for the car according to the market price of your vehicle.
Car insurance – Third Party, Fire & Theft
This type of cover is extremely limited to compare with the “Comprehensive” policy and covers you only for your liability – meaning that in the event you had an accident – your insurer would pay repair cost on the other car or third party property, for instance the fence you managed to destroy. Your expenses for your own car would be paid by you. You will only receive money for your car if it was stolen or it had a fire. In the event your car was stolen or totally destroyed by fire you would be paid only $3000.
Third Party insurance policy covers your liability only. In the event there is damage or loss to their party – all of it is covered by the policy. Your expenses are not covered by this type of policy.
To discuss which policy is suitable for your situation – meaning if you just purchased a cheap car for your teenager you might get away with a third party cover but if you just purchased a luxury sedan you are obviously better off by purchasing a Comprehensive car insurance policy.