Top Tips To Save Money On Your Car Insurance

Toy car, car insurance documents and calculator on table

05 Feb Top Tips To Save Money On Your Car Insurance

Car insurance makes good financial sense if you own a car, but let’s face it, no one wants to spend more than necessary on their car insurance policy. Saving money on car insurance isn’t about choosing less-than-adequate coverage, or working with an insurance provider with a dubious customer service record. Instead, it’s about choosing the right car insurance cover for your needs. Take a look at these 3 tips on how to save money on car insurance, while still getting the coverage you need.

1. Insure for the right amount

The cost of your insurance premium is determined by several factors, including the value of the car you’re insuring and the type of insurance cover you choose. Start by deciding which car insurance cover is right for you:


Typically, third party is the most basic car policy, and usually available at very low and affordable prices. This type of policy offers protection against your liability for causing accidental loss or damage to someone else’s vehicle or property. However, with third party, you would be responsible for covering the costs associated with repairing or replacing your own car if you’re involved in an accident where you are at fault. This policy is most suitable for those who have an older, low-value car, and are on a limited budget.


Basically, this type of car insurance offers third party cover as well as protection for fire and theft. Depending on your needs and insurance company, you might be covered for the cost of a rental car if your vehicle is damaged by fire or stolen. This type of cover is an ideal option for you if you’re budget-conscious but want protection against fire and theft.


This is the highest level of cover available. With comprehensive car insurance, you’ll be covered for any accidental damage to your vehicle as well as damage to someone else’s vehicle or property due to accidents caused by your vehicle. Comprehensive car insurance is also more expensive than other types of insurance, but it is highly recommended for those who have a high-value car and are looking for complete reliability and protection.

Depending on what type of cover you need, you may have another important decision to make – whether to insure your car for an agreed value or the market value. Most insurance providers let you choose car insurance that covers the vehicle’s market value – what your vehicle is worth on the market in the time period just before any damage – or the agreed value – the value you and your insurance company agree on when you take out your policy and each time it renews.

If you have a newer model car or you’re still paying off your car loan, insuring your vehicle for the agreed value makes sense. That way, in the event of your car being completely written off or stolen, it offers greater certainty over how much you can expect to receive so that you can plan accordingly. For those with older cars, insuring for the market value – the amount you would likely get if you sold the car before any damage occurred – is often a better option, as it usually has lower premiums compared to choosing the agreed value.

As your circumstances can change, it’s important you regularly check that your insurance cover keeps up. Perhaps there are benefits in your policy you no longer need. Or new policies that better fit your situation. Working with an Insurance Adviser – like Max Insurances – can help you determine that you have the right cover for your changing lifestyle and needs.

2. Increase your excess

Increasing your excess is another way to save money on your insurance premiums. While your premium is the amount you’ll pay, typically every month or year, for insurance cover for your car, the excess is the portion of your insured amount that you will need to pay in the event of a claim.

As your excess and premiums are linked, it makes sense that the lower your excess, the higher your premiums, and vice versa. That’s because a lower excess means the insurance company is covering more of the risk and any claim you make will cost them more.

If you’re comfortable covering more of the risk – by saving the insurer money and choosing to pay a higher excess in the event of a claim – you may be able to negotiate with your insurance provider to pay a lower premium and save money on insurance costs.

3. Shop around and compare

When it comes to car insurance, the type of cover and how much you’ll pay for car insurance differs from insurance provider to insurance provider. That’s why it’s important you shop around and compare car insurance quotes before you decide.

Ask for recommendations, read online reviews, and be sure to do your own due diligence by researching insurance companies before you commit. Keep in mind that the lowest price may not always be the cheapest option, especially when it comes to making a claim. Be on the lookout for extras that could mean you pay more in the long run or conditions that could make it harder for you to claim when you need to.

Ideally, get at least three quotes from different insurance companies – or talk to Max Insurances about your insurance options and we’ll help match you up with the right insurance company and cover.

Manage your risk

Having car insurance in place is all about managing your risk. The challenge is knowing you have the right balance of car insurance cover so you’re not underinsured or paying for things you don’t really need.

At Max Insurances, we specialise in helping our customers arrange insurance NZ wide, and we will work hard to understand your needs first, then help you find the best cover at the best price to fit those needs. But our job doesn’t end there: when it comes to making a claim, we’ll help guide you through the process and smooth the way so you’re not left on your own when you need help the most.

Whether you’re buying a new or used car, get your car insurance in place before you drive off. Talk to our team today about your options for car insurance.

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