As with most insurance products, car insurance policies in New Zealand have an excess. Your excess is the amount you are required to pay when you make a claim.
In a simplified example, if your car insurance policy has an excess of $300, and the damages bill for your incident is $7,000, then it is your responsibility to pay $300 when making a claim, and the responsibility of your insurance company to pay the remaining $6,700.
Adjusting the excess on your policy is one of the simplest ways to get cheaper car insurance premiums. If you are confident in your driving ability or can afford to pay more in a crash, you can increase your excess. This means you pay slightly more in the event you need to make a claim but results in your monthly premiums decreasing.