Overview of New Zealand’s Automotive Industry

New Zealand’s automotive industry has seen exponential growth over the past couple of decades. According to a report from the Ministry of Business Innovation and Employment, the industry contributed NZ$8.3 billion to New Zealand’s Gross Domestic Product (GDP) in 2018 – an increase of NZ$579 million from 2017. Furthermore, the automotive industry has employed close to 40,000 people, making it a major source of job creation in the country.

The reason for its growth is largely attributable to the increasing popularity of vehicles in the country. Motor vehicle registrations have been on the rise since 2005, and New Zealanders owned a total of 4.3 million vehicles in 2019. This figure is expected to keep increasing in line with the nation’s population growth.

Importance of Car Insurance in New Zealand

In New Zealand, car insurance is a legal requirement for anyone who owns and drives a vehicle. Having insurance provides financial protection in the event of an accident, theft, or vandalism. It reduces financial risk and helps limit any financial losses that may arise from accidents.

Driving without car insurance is taken very seriously in New Zealand. Those who are caught driving without valid insurance can be charged a hefty fine, have demerit points added to their license, and will be liable for all of the third-party losses in the event of an accident.

Why is Car Insurance Necessary for New Zealanders?

Car insurance is an important investment for anyone who drives a vehicle in New Zealand. Here are a few key benefits of car insurance:

• Financial Protection: Car insurance provides financial protection against losses arising from accidents or unforeseen events. It helps to limit any financial losses and ensures the policyholder is not left to pay for repairs or third-party losses out of their own pocket.
• Peace of Mind: Having car insurance gives you peace of mind knowing that you are covered in the event of an accident. You can drive with the confidence knowing that you have the financial protection in place should you need it.

Having comprehensive car insurance can provide added protection for the policyholder in the form of things like windscreen cover, cover for personal items, and cover for towing. Comprehensive policies can also provide cover for other drivers in the event that the policyholder is legally liable for their losses.

In Summary

Car insurance is an important investment for New Zealanders as it provides financial protection and peace of mind. Not only is it important to have car insurance, but it is also a legal requirement in New Zealand. Therefore, it is essential that all vehicle owners have valid car insurance before they drive their vehicle.

The automotive industry has been on the rise in New Zealand, and the increasing popularity of vehicles has made car insurance a necessity in the country. Therefore, it is crucial that all New Zealanders understand the importance of car insurance and ensure that they are adequately covered before driving their vehicles.