Spreading the risk on the large number of people yet making it affordable and accessible for people to buy insurance is the key to good insurance policing and for the growth of the industry. The insurance council members form an integral part of the New Zealand’s insurance system in which the insurers and reinsurers are part of.
The need for auto insurance
Motor insurance is always a necessary requirement to assure protection against vehicular liabilities. It covers both vehicle damage and medical expenses saving you thousands of dollars. Though the damage cost is provided by the liability insurance f the person causing the accident, the fact to be considered is that not all vehicles on the road are insured. And moreover no matter how confident you are with your driving skills you can never predict the automobile accidents that you might cause.
Enlisted are the factors which will make this tricky decision click.
- The market value of the vehicle – In the event the value of the vehicle is less, it is a worthwhile decision to personally pay for accident repairs than taking the refuge of an insurer
- In contrast, if the value of the vehicle is pretty huge, it makes sense to opt for a collision insurance policy
- In cases when the vehicle is attached to a loan, it is a safe proposition to invest in collision coverage as part of the auto insurance policy.
- It is common knowledge that vehicles are subject to wear and tear which will depreciate its market value over time. Taking into cognizance the age of the vehicle when compared to the collision insurance will help the owner make a worthwhile choice whether to opt for a collision coverage or not.
- Frequency of driving in addition to the approximate distance covered is another factor that will enable the owner to come to a logical conclusion of whether or not to avail collision coverage. Owner driven vehicles which don’t play more than a few thousand miles surely do not warrant collision coverage.