# DI-M-A-07: We have one good family car and one old runabout. Could we insure them differently to keep the cost down? Collected 11 October 2026 [Car insurance study](https://nzbrands.ai/research/insurance/car-insurance) ## ChatGPT Answer ID: bb207d02-e2e0-4741-ae38-b392df49cfc4 Yes — in New Zealand, insuring your good family car comprehensively and putting your old runabout on cheaper third-party cover is often a sensible way to reduce your insurance costs. You don't need to insure both cars to the same level. The key is to protect the car that would be expensive to replace, while avoiding paying for cover on the old car that might not be worth much. New Zealand's Consumer Protection guidance specifically recommends considering third-party or third-party, fire and theft cover for lower-value vehicles. [Car insurance](https://www.consumerprotection.govt.nz/help-product-service/cars/paying-registering-insuring-car/car-insurance)[Car insurance buying guide](https://www.consumer.org.nz/money/insurance/car-insurance/guide) ## How I'd insure the two cars ## 1. Good family car Keep comprehensive Keep comprehensive insurance if replacing the car would be a significant financial burden. It generally covers accidental damage to your own car, theft and damage you cause to other people's property, subject to policy terms. If this is the car you rely on every day for work, school and family trips, the extra protection is usually worthwhile. ## 2. Old runabout Consider third-party only If the car is worth relatively little and you could afford to replace it yourself, third-party-only insurance is worth pricing up. It protects you against liability for damage you cause to other people's vehicles or property, but doesn't pay to repair or replace your own car after an accident. You could instead choose third-party, fire and theft for the runabout if you'd like protection if it's stolen or catches fire. It usually costs more than third-party-only cover. [Car ownership and insurance](https://drive.govt.nz/car-ownership-and-maintenance/car-ownership-and-insurance)[AA Third Party Car Insurance Quote Online](https://www.aa.co.nz/insurance/car-and-vehicle-insurance/third-party-car-insurance/) ## Other ways to bring the premiums down - Increase the excess on the family car if you have enough savings to cover it after an accident. A higher excess can lower the premium. - Limit named drivers where appropriate. Some insurers offer lower premiums when younger drivers are excluded. - Tell the insurer how the runabout is used. If it does low mileage or is only used occasionally, ask whether that changes the price or available cover. - Compare at least three insurers. Get quotes for the same cover levels and excesses, and ask whether combining car, house and contents insurance earns a discount. - Review optional extras. Check whether you need roadside assistance, rental-car cover or other add-ons on both policies. [Car insurance](https://www.consumerprotection.govt.nz/help-product-service/cars/paying-registering-insuring-car/car-insurance)[Insurance](https://www.consumerprotection.govt.nz/help-product-service/managing-money/insurance)[Car insurance buying guide](https://www.consumer.org.nz/money/insurance/car-insurance/guide) ## Let's work out what might suit you If you tell me a little about the two cars, I can help you decide which cover is likely to offer the best value. ## Your two-car insurance check Estimates are fine — you don't need exact valuations. One important consideration: if you couldn't comfortably afford to replace the runabout tomorrow, don't automatically drop all cover for damage to your own car. The cheapest policy isn't always the best-value policy. ## Gemini Answer ID: 6bf24720-62e4-42a9-9371-58c0659d0ee9 Yes, you can absolutely insure them differently to reduce your overall household insurance costs. Tailoring the cover level to match how each vehicle is actually used is one of the most effective ways to save money without leaving yourselves unprotected. ### 1. Tailor the Cover Levels (The Biggest Savings) * **The Good Family Car (Comprehensive Cover):** Keep this on **Comprehensive** insurance. Because this is your main vehicle—likely of higher value and relied upon daily—you want protection for accidental damage you cause, damage to other people's property, and protection if it gets stolen or damaged by fire. * **The Old Runabout (Third Party, or Third Party, Fire & Theft):** If the runabout has a low market value (where a payout wouldn't be worth a hefty premium), consider dropping it down. * **Third Party Only:** Covers damage you cause to *other* people's cars or property, but pays nothing for your own runabout if you crash it. This is usually the cheapest option by far. * **Third Party, Fire & Theft:** Adds cover if the runabout is stolen or catches fire, which can be a good middle ground if it’s parked on the street or vulnerable, but still costs less than full comprehensive. ### 2. Adjust Your Excesses Strategically * For your main family car, you might choose a standard excess that you can comfortably afford. * For the old runabout, if you choose to keep some form of collision cover, opting for a **higher voluntary excess** can lower the premium significantly. Just keep in mind that you'll have to pay that amount out of pocket if you make a claim. ### 3. Review Multi-Car or Multi-Policy Perks * Check with insurers (such as [AA Insurance](https://www.aainsurance.co.nz/car-insurance), [Tower](https://www.tower.co.nz/multipolicy-discount/), or [AMI](https://www.moneyhub.co.nz/ami-vs-aa-vs-cove-vs-state-vs-tower-vs-trade-me.html)) to see how they handle multiple vehicles. While some providers have phased out traditional multi-policy discounts, keeping both vehicles under the same insurer can sometimes streamline your policy management or unlock loyalty benefits. * Ensure the primary driver listed for each car matches who actually drives them most often, as misrepresenting this to chase a cheaper price can cause issues at claim time. Would you like tips on how to calculate whether an old car is even worth insuring for anything other than Third Party? ## AI Overviews Answer ID: 9dd2a409-5500-4712-8869-865f5a783b47 **Yes, you can absolutely insure your cars under different levels of coverage to significantly lower your premium expenses.** In New Zealand, insurance companies look at each vehicle as an independent risk, allowing you to tailor separate protection tiers based on what each car is worth. By strategically splitting your coverage, you avoid paying a premium to protect a low-value asset while keeping your major family investment completely secure. Tailoring Cover for Your Two Cars A common money-saving approach in New Zealand involves splitting your cars across different policy levels: Vehicle| Recommended Coverage| What It Covers| Why It Saves You Money ---|---|---|--- **The Good Family Car**| **Comprehensive**| Covers accidental damage to your car, theft, fire, and any damage you accidentally cause to someone else's vehicle or property.| Protects your primary asset from costly repairs or write-offs. While more expensive, it prevents a major out-of-pocket financial loss. **The Old Runabout**| **Third Party Only (TPO)** or **Third Party, Fire & Theft (TPFT)**| **TPO:** Only covers damage you cause to other people's cars or property. **TPFT:** Adds protection if your old runabout is stolen or catches fire.| **TPO** costs a fraction of a comprehensive policy (often averaging around $300–$400/year). If an old car is worth less than $3,000–$5,000, paying for comprehensive cover rarely makes sense, as the premiums can quickly eclipse the car's actual value. Important Local Market Realities for 2026 When structuring your insurance policies in New Zealand, keep two major recent trends in mind: 1. **The Phase-out of Multi-Policy/Bundle Discounts:** A widespread industry shift across New Zealand has resulted in major insurers (including [State](https://www.state.co.nz/), [AMI](https://www.ami.co.nz/), [AA Insurance](https://www.aainsurance.co.nz/), [Tower](https://www.tower.co.nz/), and [Cove](https://www.cove.co.nz/)) completely phasing out multi-policy discounts. 2. **The "Loyalty Tax":** Because bundling discounts are largely a thing of the past, there is no longer a financial penalty for split-insuring your cars with completely different providers. Independent industry data from platforms like [Quashed](https://quashed.co.nz/) reveals that New Zealanders who shop around online and mix-and-match their policies save hundreds of dollars a year compared to staying loyal to one insurer. Alternative Strategies to Lower Costs If you prefer to keep both cars under a Comprehensive policy, you can still lower your bills by: * **Increasing your excess:** Choosing a higher voluntary excess (the amount you pay upfront during a claim) will immediately drop your regular premium costs. * **Utilising low-kilometre use:** If the old runabout is only driven short distances, ask insurers about low-mileage discounts, which reward you for driving fewer kilometres annually. If you would like to map out the exact costs, could you tell me the approximate **market value** of the old runabout and **how many kilometres** it travels each year? ## Google AI Mode Answer ID: b3bc953e-c9dd-49a3-9f62-4bfb19428ab3 Yes, insuring your two vehicles differently based on their value, usage, and risk profile is a very common and effective way to reduce your overall household insurance costs in _New Zealand_. Here is how you can tailor coverage for each vehicle: * * Good family car: Keep this on **Comprehensive** insurance. Because it is your primary and more valuable vehicle, comprehensive cover protects you against accidental damage to your own car, weather events, vandalism, theft, and damage you cause to other people's property. * Old runabout: Consider dropping this to **Third Party Only (TPO)** or **Third Party, Fire and Theft (TPFT)**. If the old runabout has a very low market value (e.g., under $3,000 to $5,000), paying for comprehensive insurance often doesn't make financial sense because the annual premium and excess might approach or exceed what the car is actually worth. Third-party cover ensures you are legally protected if you crash into someone else's expensive vehicle or property, but it saves you money by not paying to fix your own older car if it gets damaged in a fault accident. [Quashed] * Additional strategies to maximize savings across both policies: 1. **Adjust your excesses:** Opt for a higher voluntary excess on the cars (especially if you are confident drivers with a clean history) to lower the regular premium cost. Just make sure it's an amount you could easily afford to pay in an emergency. 2. **Review your km limits/usage:** Be accurate about how much each car is driven. If the old runabout is only used occasionally for short trips, letting your insurer know can sometimes lower the premium. 3. **Shop around or bundle:** While major NZ insurers like [AA Insurance](https://www.aainsurance.co.nz/aainsurance.co.nz/car-insurance) and [Tower](https://www.tower.co.nz/tower.co.nz/car-insurance-nz-quick-quote-buy-online) have largely phased out traditional multi-policy bundling discounts, it is still wise to compare quotes across providers or use a comparison platform like Quashed to find the most competitive rates for the split cover. If you'd like, let me know: * The **approximate market value** of the old runabout * **How often** and how far the runabout is driven * Who the **main drivers** are for each vehicle I can help you decide whether **Third Party Only** or **Third Party, Fire and Theft** makes the most sense for the runabout.