Roughly one in four vehicles on New Zealand roads may be driving without insurance, according to Insurance Council of New Zealand estimates. That means after a crash, there’s a real chance the other driver has no cover at all — and your own policy type suddenly matters a lot more than you might expect. For a typical family car worth $15,000, being hit by an uninsured driver with only third-party cover yourself could leave you paying for repairs or replacement out of pocket.
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This article is general information only and does not constitute professional advice. For your specific situation, consult a qualified professional.
New Zealand doesn’t use an at-fault insurance system the way some other countries do. Each driver claims on their own policy regardless of who caused the crash. That’s a key difference that catches a lot of people off guard at the roadside. Your cover type — comprehensive, third-party fire and theft, or third-party only — determines what happens next, not whose fault it was. The NZ Transport Agency’s crash rules make clear what you’re legally required to do at the scene, and your insurer’s policy wording sets everything after that.
Here’s what you actually need to know.
The Four Things You Need to Know Before You Claim
One term you’ll hear throughout the claims process is agreed value. That’s the amount you and your insurer settled on when you took out the policy — a fixed figure that doesn’t change with market fluctuations. The alternative is market value, which is what your car was worth immediately before the damage occurred. Which one applies to your policy makes a big difference to your payout if your car is written off.
What I tend to notice is that people often don’t know which valuation basis they’re on until they make a claim. Worth checking your policy schedule now — it’s one of those details that’s easy to overlook but costly to discover at the wrong moment. For a deeper look at how payouts work when a car can’t be repaired, the guide on theft recovery and car insurance payouts covers similar ground.
How Your Cover Type Changes What Happens Next
The type of car insurance you hold determines who pays for what after a crash. Comprehensive cover handles damage to your own vehicle and damage you cause to others. Third-party fire and theft adds cover for fire or theft of your own car. Third-party only covers damage you cause to other people’s property — nothing for your own vehicle. The table below shows how they compare in practice.
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| Cover Type | Damage to Your Car | Damage to Others | Typical Excess Range |
|---|---|---|---|
| Comprehensive | Covered (except exclusions) | Covered | $300–$900 |
| Third Party, Fire & Theft | Fire or theft only | Covered | $250–$500 |
| Third Party Only | Not covered | Covered | $200–$500 |
If the other driver is at fault and uninsured, your own cover type becomes critical. With comprehensive cover, you can claim on your policy and your insurer will attempt to recover costs from the uninsured driver through a process called subrogation. With third-party only, you may need to pursue the other driver yourself through the Disputes Tribunal, which handles claims up to $30,000. That’s a process that can take months and requires you to gather evidence, file paperwork, and attend a hearing.
The excess is the amount you contribute to the claim. For comprehensive policies, excesses typically range from $300 to $900. If the accident wasn’t your fault and your insurer recovers the full cost from the other party, you may get your excess back — but that’s not guaranteed and can take weeks or months. Worth weighing that against the cost of a dashcam to record evidence at the scene, which can help establish what happened.
Where the Claims Process Trips People Up
Admitting fault at the roadside
Under the Land Transport Act 1998, you’re required to stop, exchange details, and help if someone is injured. You are not required to decide or admit who caused the crash. Saying “sorry, my fault” at the scene can be used by the other driver’s insurer later. Stick to the facts — exchange details, take photos, and let your insurer assess liability. The Police 105 service is the right channel for reporting non-injury crashes that still need a formal record.
Waiting too long to notify your insurer
Most policies require you to report a claim as soon as reasonably possible. Some insurers specify a window — often within 30 days — but 24 to 48 hours is the practical benchmark. Delaying gives the insurer less time to inspect damage, gather evidence, and interview witnesses before memories fade. If the other driver’s account reaches them first, your version can look less credible. One scenario that plays out regularly: a driver waits a week to report a minor rear-end, and by then the other party has already filed a conflicting version with their insurer.
Not understanding your excess situation
Your excess is due when the claim is accepted, typically collected by the repairer or deducted from the settlement. If the accident wasn’t your fault, your insurer may waive, refund, or reimburse the excess after recovering costs from the other party — but this isn’t automatic. Ask your insurer upfront: “If I’m not at fault, will my excess be refunded?” and get the answer in writing. The difference between a $500 excess that comes back and one that doesn’t is real money.
Authorising repairs before the insurer assesses
Do not authorise repairs or dispose of damaged property without checking your insurer’s process first. If you get the work done before they’ve inspected the vehicle, they may refuse to cover the cost or only pay part of it. The same goes for towing and storage — keep receipts, but check with your insurer before committing to large expenses. A quick call to your claims handler can save you from paying for work the insurer won’t approve.
What I’d do in this situation: keep a printed checklist in the glovebox with the key steps — stop, check injuries, call 111 if needed, exchange details within 48 hours, photograph everything, notify insurer within 24 hours, and never admit fault. Having it written down removes the guesswork when you’re shaken up after a crash.
- Stop and check for injuries — call 111 if anyone is hurt
- Exchange name, address, plate number within 48 hours
- Photograph damage, plates, road layout, and conditions
- Get witness names and contact details
- Notify your insurer within 24 to 48 hours
- Do not admit fault or discuss blame at the scene
- Do not authorise repairs before the insurer assesses damage
The Step-by-Step Path From Crash to Settlement
At the scene: safety, evidence, and legal obligations
Your first duty is to people, not paperwork. Check for injuries and call 111 if anyone needs emergency help. If it’s safe, move vehicles out of traffic and turn on hazard lights. Under NZTA rules, you must provide your name, address, and plate number to any other driver involved — as soon as possible and no later than 48 hours. If the other driver can’t be found or the property owner isn’t available, report the crash to Police within 24 hours via the 105 service. Take photos of all vehicles from multiple angles, the wider scene showing road markings and signs, and any skid marks or debris. Write down the time, date, weather, and a brief factual sequence while it’s fresh.
Notifying your insurer and protecting the vehicle
Contact your insurer as soon as possible — most have 24/7 claims lines, online lodgement, or mobile apps. Have your policy number, the date and time of the crash, a description of what happened, the other driver’s details, and any Police reference number ready. Answer questions truthfully and provide an accurate account. Do your best to prevent further loss — secure the vehicle if safe, avoid driving it if further damage could result, and keep receipts for reasonable emergency steps like towing or temporary storage. Do not authorise repairs or dispose of the vehicle until the insurer tells you to.
Assessment, repair, and settlement
The insurer will confirm coverage and may arrange an inspection by an assessor or approved repairer. For minor damage, the process can move quickly — sometimes within days. For more complex claims, the assessor evaluates the damage and decides whether repair or write-off is appropriate. If repair costs are below roughly 60 to 70 percent of the car’s value, repairs typically proceed. Above that threshold, the car is likely to be declared a total loss. Under an agreed-value policy, the payout is the stated amount minus your excess. Under a market-value policy, the payout is based on what the car was worth immediately before the damage — which may be less than you expect.
What happens if you disagree with the decision
If your claim is declined or the settlement offer seems too low, ask for the reasons and relevant policy terms in writing. Make a formal complaint to the insurer’s internal disputes team. If that doesn’t resolve it, you can escalate to an approved external dispute-resolution scheme — the Insurance and Financial Services Ombudsman (IFSO) is one option, and it’s free for consumers. All New Zealand financial service providers must belong to an approved scheme under the Insurance Contracts Act 2024. For complex disputes involving policy interpretation, you might want to get legal guidance on your options before escalating.
- 1Report the incidentContact your insurer by phone, online, or app. Provide your policy number, date and time of the crash, a description of what happened, and the other driver’s details if available.
- 2Submit supporting documentsSend photos of damage from multiple angles, the other driver’s details, witness contact information, any Police reference number, and receipts for emergency costs like towing.
- 3Vehicle assessmentThe insurer arranges an inspection by an assessor or approved repairer. They evaluate the damage and determine whether repair or write-off is appropriate based on cost vs value.
- 4Decision and settlementThe insurer approves, partially approves, or declines the claim. If approved, they arrange repairs or issue a payout minus your excess. If declined, they must provide written reasons.
Questions People Ask When the Process Gets Complicated
What if the other driver leaves without exchanging details? ▾
Do I need to call Police for a minor crash with no injuries? ▾
What if the crash was my fault and I only have third-party cover? ▾
How long does a claim usually take? ▾
Will my premium go up after making a claim? ▾
Can I choose my own repairer? ▾
What a Written-Off Car Actually Means for Your Payout
The moment repair costs cross roughly 60 to 70 percent of your car’s pre-crash value, the economics flip. The insurer pays you out instead of fixing the car. If you’re on an agreed-value policy, that figure was set when you took out the cover — you know what you’re getting. If you’re on market value, the payout depends on what similar cars were selling for the day before the crash, which can be lower than you’d expect, especially if the used market has softened. That gap between expectation and reality is where a lot of the frustration in the claims process lives. The best time to check which valuation basis applies to your policy is before you ever need to use it.
Remember: this article is general information only. For advice on your specific situation, speak to a qualified professional.
If this was useful, you might also want to read Hit and Run in New Zealand: What to Do When You’re a Victim.
Sources and Further Reading
Government Mandates and Their Impact on NZ Car Insurance Claims — A closer look at how recent regulatory changes affect the claims landscape for New Zealand drivers.
Unbelievable Car Insurance Claims That Actually Happened in New Zealand — Real claim examples that highlight what can go right and wrong in the process.
Insurance Council of New Zealand (2025). Making a claim. 🔗
NZ Transport Agency Waka Kotahi. Crashes: General Road Code. 🔗
New Zealand Police. Traffic crash report — 105 service. 🔗
Consumer Protection NZ. Car insurance. 🔗
Compare.org.nz (2025). What to do after a car accident in NZ. 🔗
Compare.org.nz (2025). How to make a claim. 🔗
