Car Insurance Or Registration First? A Guide For New Car Owners

Buying a vehicle is not always as straightforward as it seems. After your initial purchase, you need to think about other important things like maintenance, registration, and car insurance. It can be a challenge for first-time car buyers to figure out which items to prioritize, so we’re here to help. For this article, we’ll talk about whether you’re better off buying your car insurance first, or getting a registration later.

Car Registration in New Zealand

As part of the Land Transport Act of 1998, vehicle owners need to provide documentation that would prove they’re the legal owner of the vehicle. This involves paying a one-off fee to add your new car to the Motor Vehicle Register, allowing the governing body to issue number plates. This helps people by ensuring only vehicles which meet NZ’s standards are out on the road.

It is a legal requirement in New Zealand to register your car before taking it on the road. Always remember to have your registration details updated and valid:

Warrant of Fitness (WoF) - This is a regular inspection that ensures your vehicle is still compliant with the safety standards. This is conducted by mechanics and repair shops authorised by certified fitness inspectors.

License -  You need to have a license to drive your vehicle at all times. Fortunately, the NZ Transport Agency will always send you a renewal notice, giving you ample time to keep your license up to date.

Distance License - This is especially important for diesel vehicles driving in NZ. Diesel vehicles are required to have a current distance license with paid road user charges (RUC) mileage at all times with them.

Keep in mind that you’ll need to bring an accomplished application form for your vehicle, along with an acceptable, valid ID such as an NZ driver’s license with photo, a full birth certificate and EFTpos, or credit card, a New Zealand or overseas passport, or even an overseas driver’s license.

Car Insurance in New Zealand

It is not compulsory to have car insurance in NZ in order to drive a car. However, it’s still advisable to have even third-party car insurance just in case you encounter any damage on the road. In fact, it is advisable to get at least the basic level cover before you hit the road in your new car.

So should I go for Car Insurance or Car Registration first?

While car insurance isn’t mandatory, getting it early on can potentially save you hundreds if not, thousands of dollars in liabilities and damages later on. It can also help you streamline the registration process when you pay a visit to the office. As such, it is recommended to have a policy in place prior to registering your vehicle.

Most dealers can help you get a basic third-party car insurance for legal liability when you first purchase your car. If you want to expand your cover to include more incidents and possibilities, you can easily increase your budget to purchase third-party, with fire and theft cover or even comprehensive car insurance. We’re ready to help you with those needs.

Use glimp’s comprehensive car insurance comparison page to see all the best car insurance deals so you can choose the provider that best fits your budget. See which options offer the services you need, allowing you to plan out your premium payments without being burdened by add-ons and extras you don’t really need.

Stay safe and happy driving!