Operating a vehicle without car insurance in New Zealand is not legally prohibited, but being involved in an uninsured accident carries extreme financial risk. While New Zealand's government-run Accident Compensation Corporation (ACC) covers personal injury tort liability (meaning you cannot be sued for medical injuries), you remain 100 percent personally liable for any property damage you cause. If you crash into another driver's expensive vehicle, you must pay for all repair costs out of pocket, which can lead to severe debt or bankruptcy if judgements are enforced against you.
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