Third Party Only Car Insurance
Blogging On Interest Rates, Economics & Business in New Zealand
By John Grant
Young people looking for car insurance need to carefully consider why they are buying the cover they choose.
The choice depends on a range of factors and in the first instance is probably mainly influenced by affordability. In the following example we explore the options for a 21 year old female buying her first car and therefore having no previous insurance record.
In most countries this basic form of insurance is compulsory.
It provides cover for any injuries you may cause to other people, but not to their property. In New Zealand this is provided by the ACC and is paid when you pay the annual license fee on your car. The current fee for a private vehicle is $247.86.
Third Party Property Damage
This is another basic form of insurance protection and provides cover for damage you may do to other people’s property, but in principle does not necessarily cover damage to your own property.
Excess amounts (the amount you must contribute to any claim) vary between insurers and tend to be very high for drivers aged under 25 years, so it pays to shop around and compare before you commit to one company. For our 21 year old, the excess at State Insurance is $1,200 per claim. An under 21 driver who has held a license for less than 2 years, could have an excess as high as $1,450 per claim.
Most third party policies have now been extended to cover your own vehicle for accidental damage up to $3,000. But this typically only applies where the other party is at fault, where they are uninsured, and you have clearly identified them. (Insured drivers who cause damage obviously have cover for their own vehicle which is why it is not included in basic third-party cover.)
Expect to pay somewhere in the order of $170 to $500 in annual premium. Our reviews showed that for a 1996 Mitsubushi Mirage, annual premiums varied from $170 at State to $411 at AA Insurance.
...Atlantic City to start billing victims for fighting fires; intends to make ...
ATLANTIC CITY — Officials hope to save the city millions by billing for fire services under a new ordinance approved Wednesday night.
City Council approved the rule 8-0, with Councilman George Tibbitt absent from the governing body’s meeting Wednesday.
Officials have not yet set the rates and terms of the new law. But they intend to arrange it so that only insurance companies have to pay the bill, Atlantic City Fire Chief Dennis Brooks said Wednesday.
The city has not crunched numbers on estimated revenue from the new law, which leaves Brooks in charge of setting guidelines and finalizing a contract with a third-party billing agency. The city also will get a say in forgiving charges on a case-by-case basis, the ordinance states.
Billing for fire services is a burgeoning trend that city Revenue and Finance Director Michael Stinson likened to the onset of paying for ambulance rides during the past decade or so.
So far, few towns in New Jersey have started charging for fire services, said Bill Dressel, executive director of the state League of Municipalities. It’s unclear how — if at all — the new law could affect insurance premiums.
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