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Updated March 2026

Compare Car Insurance in New Zealand

Compare quotes from 16+ NZ car insurance providers side-by-side. Find the right cover at the right price: comprehensive, third party, or fire & theft. 100% free.

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Last reviewed: 4 March 2026
1 Cover
2 Value
3 Location

What cover do you need?

Choose the level that suits your situation.

Comprehensive ~$700-$1,200/yr
Third Party, Fire & Theft ~$350-$600/yr
Third Party Only ~$200-$400/yr

What's your car worth?

Approximate current market value.

$25,000
Estimated vehicle value
$3,000$80,000

Where do you live?

Your region affects your premium.

$700–$1,200
Avg. comprehensive premium/yr
Not Required
Car insurance is voluntary in NZ
Up to 65%
No-claims bonus discount
5–20%
Estimated uninsured NZ drivers

On This Page

What is Car Insurance? Types of Car Insurance How to Choose Provider Comparison Table Provider Reviews What Car Insurance Covers Common Exclusions What Affects Your Premium Cost Guide 2026 How to Save Money Switching & Renewal How to Make a Claim NZ-Specific Information Understanding Your PDS Frequently Asked Questions Glossary of Terms Insurance by Car Brand

What is Car Insurance?

A quick overview of how car insurance works in New Zealand and why most Kiwis choose to have it.

Car insurance is a contract between you and an insurance provider. You pay a premium (monthly or annually), and in return the insurer covers the cost of damage to your vehicle, other people's property, or both - depending on the level of cover you choose.

New Zealand is unusual in that car insurance is not compulsory. Unlike Australia, the UK, and most other developed countries, there is no legal requirement to insure your vehicle. ACC (Accident Compensation Corporation) covers personal injuries from car accidents, but it does not cover damage to vehicles or property. That responsibility falls entirely on the driver.

This means if you cause an accident without insurance, you are personally liable for the cost of repairing or replacing the other driver's vehicle and any other property damage. Claims can easily run into tens of thousands of dollars. An estimated 5 - 20% of NZ drivers are uninsured, which also means there's a real chance the other driver in an accident may not have cover either.

Key point: Even the most basic Third Party Only policy (from around $200/year) protects you from the financial risk of damaging someone else's property. For the cost of a few dollars a week, it removes the risk of a bill that could be $10,000 - $50,000+.

When you take out a comprehensive policy, you'll also need to choose between agreed value and market value. Agreed value locks in a payout amount when you start the policy, so you know exactly what you'll receive if the car is written off. Market value means the insurer pays what the car is worth at claim time, which may be lower due to depreciation. Both have trade-offs - agreed value gives certainty but costs slightly more in premiums.

For a detailed breakdown of what each type covers and costs, see the sections below. You can also check the FMA's insurance guide for general information about insurance in New Zealand.

Types of Car Insurance in NZ

There are three main types of car insurance available in New Zealand. Here's how they compare.

Third Party Only

From ~$200–$400/yr

The most basic cover. Only pays for damage you cause to other people's vehicles or property. Your car is not covered at all.

  • ✓ Third-party property damage
  • ✗ Your vehicle - accidents
  • ✗ Your vehicle - theft
  • ✗ Your vehicle - fire
  • ✗ Natural disaster damage
  • ✗ Windscreen / glass
  • ✓ Cheapest option

Third Party, Fire & Theft

From ~$350–$600/yr

Mid-tier cover. Covers damage to others' property, plus your car if it's stolen or damaged by fire. A popular choice for older vehicles.

  • ✓ Third-party property damage
  • ✗ Your vehicle - accidents
  • ✓ Your vehicle - theft
  • ✓ Your vehicle - fire
  • ✗ Natural disaster damage
  • ✗ Windscreen / glass
  • ✓ Good for lower-value cars

Comprehensive

From ~$700–$1,200/yr

Full protection. Covers damage to your car and others' property from accidents, theft, fire, weather, vandalism, and natural disasters.

  • ✓ Third-party property damage
  • ✓ Your vehicle - accidents
  • ✓ Your vehicle - theft
  • ✓ Your vehicle - fire
  • ✓ Natural disaster damage
  • ✓ Windscreen / glass
  • ✓ Most complete protection

How to Choose the Right Car Insurance

The right policy depends on your car, your budget, and how much risk you're comfortable carrying yourself.

🚗 Newer or High-Value Car

  • Comprehensive cover is typically the most suitable option
  • Consider agreed value so you know the payout amount upfront
  • Check if your insurer offers new-for-old replacement on near-new vehicles
  • If you're still paying finance, your lender may require comprehensive

🔧 Older or Lower-Value Car

  • If comprehensive premiums exceed 10% of the car's value, TPFT may be more practical
  • Third Party Fire & Theft protects against theft and fire while covering you for damage to others
  • Market value is often adequate since agreed value offers less benefit on cheaper cars
  • Consider setting aside a savings buffer for repairs instead

💰 Tight Budget

  • Third Party Only is the minimum worth having - it covers damage you cause to others
  • A higher excess lowers premiums but means more out of pocket at claim time
  • Pay annually if possible - monthly instalments include fees that add up
  • Ask about multi-policy discounts if you also have home or contents insurance

Comparison Checklist: What to Look at When Comparing Quotes

  1. Premium cost - get quotes from at least 3 - 4 providers. Prices can vary by 30% or more for identical cover.
  2. Excess amount - the standard excess ($400 - $500) and any age-related, voluntary, or natural disaster excess that may apply on top.
  3. Agreed vs market value - if your car is written off, how much will you actually receive? Sorted.org.nz has a useful comparison guide.
  4. What's excluded - check the Product Disclosure Statement (PDS) for exclusions. Common ones include wear and tear, mechanical breakdown, and driving under the influence.
  5. Claims process - can you lodge claims online or via an app? How quickly does the insurer typically settle? Check Consumer NZ reviews for customer satisfaction data.
  6. No-claims bonus - does the insurer offer NCB protection? Can you transfer your existing NCB from another provider?
  7. Extras and add-ons - rental car cover, roadside assist, windscreen cover with no excess, keys and locks replacement.

NZ Car Insurance Providers Compared

A side-by-side comparison of every major car insurance provider in New Zealand.

Provider Cover Types Online Quotes Best For
AA Insurance Comp, TPFT, TP ✓ All-rounder
AMI Comp, TPFT, TP ✓ Families
State Comp, TPFT, TP ✓ Multi-policy
Tower Comp, TPFT, TP ✓ Competitive pricing
Vero Comp, TPFT Broker only Via broker
FMG Comp, TPFT, TP ✓ Rural / farming
Cove Comp, TP ✓ Digital-first
Trade Me Insurance Comp, TPFT, TP ✓ Budget
Ando Comp, TP ✓ Digital simple
Star Insurance Comp, TPFT ✓ Imports / modified
MAS Comp, TPFT ✓ Medical professionals
Co-operative Insurance Comp, TPFT, TP ✓ Mutual
Protecta Comp, MBI ✓ Dealer channel
Initio Comp, TPFT Broker only Via broker

Comp = Comprehensive  |  TPFT = Third Party, Fire & Theft  |  TP = Third Party Only  |  MBI = Mechanical Breakdown Insurance

Disclaimer: Features and cover options may change. Always verify details directly with your insurer before purchasing. We do our best to keep all data up to date and accurate. If you've noticed something incorrect, please let us know.

Top NZ Car Insurance Providers

In-depth look at New Zealand's most popular car insurers.

AA Insurance
★★★★★

One of NZ's largest insurers. Joint venture between AA NZ and Suncorp. Known for excellent service and included AA Roadside Assistance with comprehensive policies.

AA Roadside Assist included
NCB protection available
Lifetime repair guarantee
Rideshare cover option
Agreed or market value
Multi-policy discount
From ~$55/mo
Get Quote Read Full Review
AMI Insurance
★★★★★

Originally a mutual insurer, now owned by IAG. One of NZ's most trusted brands with strong nationwide presence and competitive family-focused policies.

NCB protection available
Loyalty discounts
New vehicle replacement
Windscreen cover
Emergency travel costs
Multi-policy discount
From ~$50/mo
Get Quote Read Full Review
State Insurance
★★★★★

Long-standing NZ brand under IAG. Known for strong multi-policy discounts and lifetime repair guarantee on approved repairer work.

Lifetime repair guarantee
NCB protection available
Multi-policy savings
Courtesy car option
Keys & locks cover
24/7 claims line
From ~$48/mo
Get Quote Read Full Review
Tower Insurance
★★★★★

NZ's largest NZX-listed insurer. Competitive pricing with strong digital experience and app-based claims process.

Competitive premiums
NCB protection available
App-based claims
Rideshare cover
Pay-as-you-drive option
Online management
From ~$45/mo
Get Quote Read Full Review
Vero Insurance
★★★★★

Major insurer operating through broker networks. Part of Suncorp Group. Strong commercial and personal lines with comprehensive cover options.

Comprehensive & TPFT
Broker-arranged policies
Agreed or market value
Windscreen cover
Rental car cover
Multi-policy discount
From ~$50/mo
Get Quote Read Full Review
FMG Insurance
★★★★★

New Zealand's leading rural insurer. Mutual insurer owned by its members, with a strong focus on farming and rural communities. Personalised service through local advisors.

Comp, TPFT & TP available
Rural & farm vehicle specialists
Personal local advisors
Multi-policy discount
NCB protection available
Member-owned mutual
From ~$48/mo
Get Quote Read Full Review
Cove Insurance
★★★★★

NZ's fastest-growing digital insurer. 100% online, with quotes in 60 seconds. Clear policy wording, no lock-in contracts, and cancel anytime for free.

Comprehensive & TP
Quote in 60 seconds
No lock-in contracts
Manage via app or web
Fast claims turnaround
From $9.80/week
From ~$43/mo
Get Quote Read Full Review
Trade Me Insurance
★★★★★

Backed by Trade Me, NZ's largest online marketplace. Competitive pricing with a straightforward online experience. Underwritten by Tower.

Comp, TPFT & TP
Competitive budget pricing
Online quotes & management
NCB protection available
Windscreen cover
24/7 claims line
From ~$40/mo
Get Quote Read Full Review
Ando Insurance
★★★★★

Digital-first insurer focused on simplicity. Quick online quotes, easy claims via app, and straightforward policy options. Part of the Ando Group.

Comprehensive & TP
Simple digital experience
App-based claims
Quick online quotes
Agreed or market value
No paperwork
From ~$42/mo
Get Quote Read Full Review
Star Insurance
★★★★★

Specialist vehicle insurer with strong expertise in imports, modified, and performance cars. A good choice for vehicles that mainstream insurers may decline or charge extra for.

Comprehensive & TPFT
Import vehicle specialists
Modified car cover
Performance vehicle cover
Agreed value available
Online quotes
From ~$50/mo
Get Quote Read Full Review
MAS Insurance
★★★★★

Mutual insurer exclusively for medical professionals and their families. Member-owned with consistently high customer satisfaction and competitive premiums for eligible members.

Comprehensive & TPFT
Medical professionals only
Member-owned mutual
High customer satisfaction
Multi-policy discount
Personalised service
From ~$46/mo
Get Quote Read Full Review
Co-operative Insurance
★★★★★

NZ-owned mutual insurer run for the benefit of its members. Straightforward cover options with competitive pricing and a community-focused approach.

Comp, TPFT & TP
Member-owned mutual
Competitive pricing
Online quotes
Multi-policy discount
Community focused
From ~$44/mo
Get Quote Read Full Review
Protecta Insurance
★★★★★

Specialist motor vehicle insurer primarily sold through car dealerships. Offers comprehensive cover and mechanical breakdown insurance (MBI) at point of sale.

Comprehensive & MBI
Dealer channel specialist
Mechanical breakdown cover
GAP insurance available
Payment protection
Online claims
From ~$52/mo
Get Quote Read Full Review
Initio Insurance
★★★★★

Broker-only insurer offering comprehensive and TPFT cover. Part of the NZI/IAG family, available through insurance brokers and advisors nationwide.

Comprehensive & TPFT
Broker-arranged policies
Agreed value available
Windscreen cover
Courtesy car option
Multi-policy discount
From ~$48/mo
Get Quote Read Full Review

What Does Car Insurance Cover?

A detailed breakdown of what's typically included in NZ car insurance policies.

FeatureComprehensiveTP Fire & TheftThird Party
Accidental damage to your car✓ Covered✗✗
Theft or attempted theft✓ Covered✓ Covered✗
Fire damage✓ Covered✓ Covered✗
Third-party property damage✓ Up to $20M✓ Up to $20M✓ Up to $20M
Natural disaster (flood, quake, storm)✓ Covered✗✗
Windscreen / glass✓ Covered✗✗
Vandalism / malicious damage✓ Covered✗✗
Weather damage (hail, flood)✓ Covered✗✗
Towing costs✓ CoveredVaries✗
Emergency travel / accommodation✓ $1K–$2K limit✗✗
Rental car while yours is repairedOptional add-on✗✗
New vehicle replacement (if near-new)Some providers✗✗
Keys & locks replacementSome providers✗✗
Trailer cover (while attached)Some providers✗✗

⚡ Agreed Value vs. Market Value

Agreed value: you and the insurer set a fixed payout amount when you take out the policy. This is the amount you receive if the car is written off. Premiums are slightly higher, but you know exactly what you'll get. Market value: the insurer pays what the car is worth at the time of the claim, based on market conditions. This may be less than expected if your car has depreciated. Many drivers choose agreed value for the certainty it provides, despite the small premium increase.

Common Car Insurance Exclusions

Understanding what is not covered is just as important as knowing what is. These are the most common exclusions across NZ policies.

🍺 Driving Under the Influence

If you're involved in an accident while over the legal alcohol or drug limit, your claim will almost certainly be declined. This applies to all policy types and is a standard exclusion across every NZ insurer.

🔧 Mechanical & Electrical Breakdown

Car insurance covers sudden, unexpected events - not mechanical failure, wear and tear, or gradual deterioration. If your engine fails or your transmission breaks, that's a repair bill, not an insurance claim. Separate mechanical breakdown insurance (MBI) exists for this.

🏁 Racing & Off-Road Use

Using your car for racing, rallying, speed testing, or on a track is excluded. Some policies also exclude off-road use or driving on beaches unless specifically covered. Check your PDS for the exact wording.

📋 Unlicensed or Unregistered

Driving without a valid licence, with an expired licence, or with an unregistered/un-warranted vehicle can void your cover. Make sure your WoF/CoF and registration are always current.

📦 Personal Belongings

Items stolen from your car (laptops, phones, bags) are generally not covered by car insurance. These typically fall under your contents insurance policy. Some comprehensive policies include limited cover ($200 - $500) but most do not.

🚛 Using Your Car for Business

If you use your personal car for commercial purposes (courier driving, ride-sharing, goods delivery) and your policy only covers private use, claims may be declined. Let your insurer know if you drive for Uber, deliver for apps, or use your vehicle for work beyond normal commuting.

⏳ Pre-existing Damage

Damage that existed before you took out the policy is not covered. Some insurers inspect vehicles (or ask for photos) when you first sign up. Be honest about existing dents, scratches, or mechanical issues.

🌊 Specific Natural Events (Some Policies)

While most comprehensive policies cover natural disasters, some have sub-limits or separate higher excesses for flood, earthquake, or volcanic damage. After the 2023 Auckland floods and Cyclone Gabrielle, some policies added specific event exclusions or excess increases. Always check the fine print.

Always read the Product Disclosure Statement (PDS) for the full list of exclusions specific to your policy. You can usually find this on the insurer's website or request a copy before you buy.

What Affects Your Car Insurance Premium?

Understanding these factors can help you find a better deal.

🚗

Vehicle Make & Model

Some cars cost more to repair or are stolen more often. Japanese imports (common in NZ) may have different parts costs.

💰

Vehicle Value

Higher-value vehicles cost more to insure. Consider market value vs. agreed value when setting your sum insured.

👤

Driver Age & Experience

Under-25 drivers pay significantly more. Years on a full licence, driving history, and demerit points all factor in.

📍

Location

Auckland tends to be more expensive due to higher theft rates. Overnight garaging vs. street parking also matters.

🏆

No-Claims Bonus

Up to 60–65% discount for 5+ claim-free years. The single biggest controllable factor in your premium.

🔧

Excess Amount

Choosing a higher voluntary excess lowers your premium. Standard excess is $400–$500. You can choose $100–$2,500+.

🛡️

Security Features

Immobilisers, alarms, and garaging can reduce premiums. Some insurers offer dashcam discounts.

📝

Cover Type & Level

Comprehensive costs more than TPFT, which costs more than TP. Annual payment is cheaper than monthly instalments.

🏠

Multi-Policy Discounts

Bundling car + home + contents with one insurer often earns a 5–15% discount across all policies.

Car Insurance Costs in NZ (2026 Guide)

Indicative annual premiums for a standard driver aged 30–50 with a full licence and no recent claims.

Comprehensive
$700 – $1,200
~$60–100/mo
TP, Fire & Theft
$350 – $600
~$30–50/mo
Third Party Only
$200 – $400
~$17–33/mo
Young Driver (under 25)
$1,500 – $3,000+
~$125–250/mo

Typical Excess Amounts

  • Standard excess: $400 – $500
  • Young driver excess: +$500 – $1,500
  • Windscreen excess: $0 – $350
  • Natural disaster excess: Varies by provider

Market Positioning

  • Budget: Tower, Trade Me, Cove
  • Mid-range: AMI, State, AA Insurance
  • Premium: Vero (broker), MAS, FMG
  • Specialist: Star Insurance (imports/modified)

Disclaimer: All prices shown are indicative estimates based on publicly available data and typical driver profiles as of early 2026. Actual premiums vary based on your vehicle, location, driving history, and chosen cover level. These figures are not quotes. Always obtain a personalised quote from the insurer directly. Prices and product features may change without notice.

10 Ways to Save on Car Insurance in NZ

Practical tips that could save you hundreds of dollars every year.

1

Compare every year

Don't just auto-renew. Compare quotes annually - Sorted and Consumer NZ both highlight switching as one of the best ways to save.

2

Increase your excess

Raising your excess from $400 to $750 can reduce premiums by 10–20%. Only do this if you can afford the excess.

3

Protect your no-claims bonus

5+ claim-free years can earn up to 65% off. Consider paying small repairs out of pocket to protect it.

4

Bundle your policies

Combining car, home, and contents with one insurer can save 5–15% across all policies.

5

Pay annually

Monthly payments include instalment fees. Paying upfront once a year is almost always cheaper.

6

Limit named drivers

Restricting your policy to named drivers only (instead of "any driver") can lower your premium.

7

Park in a garage

Garaging your vehicle overnight reduces theft risk and can lower premiums compared to street parking.

8

Install security devices

Immobilisers and alarms can earn small discounts. Some insurers also consider dashcams.

9

Choose the right cover level

If your car is worth under $5,000, TPFT may be more cost-effective than comprehensive. Do the maths.

10

Review your agreed value

If your car has depreciated, your agreed value may be too high, meaning you're paying for cover you don't need.

Switching & Renewal: When and How to Change Insurers

Your renewal date is the best time to review your cover and compare prices. Here's how to make the most of it.

1

Don't Auto-Renew Without Checking

Most NZ car insurance policies renew automatically each year. Your insurer will send a renewal notice (usually 2 - 4 weeks before renewal) showing next year's premium. This is your cue to compare. Premiums often increase at renewal even if you haven't made a claim - sometimes by 10 - 20% with no explanation beyond "market conditions". Don't accept the renewal price without checking alternatives first.

2

Compare Quotes 2 - 3 Weeks Before Renewal

Start comparing quotes from other providers about 2 - 3 weeks before your renewal date. You'll need your car's registration, make, model, year, and your driving history. Most providers offer online quotes in under 5 minutes. Get quotes from at least 3 - 4 insurers to see the full range of pricing available to you.

3

Check Your No-Claims Bonus Transfers

Most NZ insurers will accept your no-claims bonus from another provider. Ask the new insurer to confirm this before switching. You'll typically need a letter or email from your current insurer confirming your claims history. A 5+ year no-claims bonus can be worth 60 - 65% off your premium, so losing it would wipe out any savings.

4

Time the Switch Correctly

Start your new policy from the day your old one expires. If you cancel mid-term, you may be charged a cancellation fee ($30 - $75 is common) or lose part of your premium. Some insurers offer pro-rata refunds; others keep the full year's premium. Read the cancellation terms in your current PDS before switching.

⚠️ Renewal Traps to Watch For

  • Loyalty tax - long-term customers often pay more than new customers. Consumer NZ has documented cases where switching saved hundreds of dollars.
  • Reduced cover at the same price - sometimes the premium stays the same but the agreed value has been quietly reduced, or excess has increased. Read the renewal letter carefully.
  • Promotional discounts that expire - first-year discounts (e.g. "20% off for new customers") disappear at renewal. Factor this into your year-two cost when signing up.
  • Bundled discount lock-in - if you have multi-policy discounts, check whether switching one policy affects discounts on your other policies with the same insurer.

How to Make a Car Insurance Claim

Step-by-step guide to the claims process in New Zealand.

1

Stay Safe

Ensure everyone is safe. Call 111 if there are injuries. Move vehicles if safe to do so.

2

Document It

Take photos, exchange details with other parties, get witness info. File a police report if needed.

3

Contact Insurer

Call your insurer's 24/7 claims line or use their app/website. Provide all details and photos.

4

Assessment

An assessor reviews the damage. Your insurer arranges repairs at an approved repairer or settles the claim.

5

Resolution

Vehicle is repaired or you receive payout (agreed/market value minus excess). Drive on.

💡 Claim Tips

  • Always report incidents promptly (most policies require notification within 30 days)
  • Don't admit fault at the scene; let your insurer determine liability
  • Keep receipts for any emergency expenses (towing, accommodation)
  • If you disagree with a claim decision, escalate to the IFSO (Insurance & Financial Services Ombudsman), which is free

Car Insurance in New Zealand: What You Need to Know

Key NZ-specific facts that set our insurance market apart from the rest of the world.

🚫 Not Compulsory

New Zealand is one of the few developed countries where car insurance is not legally required. There is no mandatory third-party vehicle insurance. This means an estimated 5–20% of NZ drivers are completely uninsured. If an uninsured driver damages your property, you may need to pursue them through the courts, which is one reason many Kiwis opt for comprehensive cover.

🏥 ACC Covers Injury, Not Damage

NZ's unique ACC (Accident Compensation Corporation) scheme covers personal injury from car accidents regardless of fault. This means NZ car insurance focuses purely on property damage: your vehicle, other vehicles, and other property. ACC is funded through vehicle registration levies, fuel excise tax, and earner levies. You cannot sue for personal injury in NZ.

🌊 Natural Disaster Risk

Unlike home insurance (where EQC/Toka Tu Ake provides a base layer), car earthquake and flood cover comes entirely from your private insurer. After events like Cyclone Gabrielle (2023), some insurers have adjusted pricing or excesses for flood-prone areas. Check your policy's natural disaster excess separately.

⚖️ Dispute Resolution (IFSO)

All licensed NZ insurers must belong to an approved dispute resolution scheme. The IFSO (Insurance & Financial Services Ombudsman) handles complaints at no cost to consumers. Insurers must be registered on the Financial Service Providers Register (FSPR) and are regulated by the Reserve Bank of New Zealand.

🇯🇵 Japanese Import Market

NZ has one of the highest rates of used Japanese import vehicles in the world. This affects insurance because parts availability and repair costs can differ from NZ-new vehicles. Some specialist insurers like Star Insurance cater specifically to imported and modified vehicles.

🏢 Market Structure

The NZ car insurance market is dominated by two groups: IAG (AMI, State, NZI, Lumley) and Suncorp (Vero, AA Insurance, Initio), together holding ~65–70% market share. Tower is the largest NZ-listed insurer outside these groups. Newer digital entrants like Cove and Ando are growing rapidly.

Understanding Your Policy Document (PDS)

Every NZ insurer must provide a Product Disclosure Statement. Here's what to look for before you buy.

What is a PDS?

A Product Disclosure Statement is a legal document that outlines everything about your insurance policy: what's covered, what's excluded, your obligations, and how to make a claim. Under the Financial Markets Conduct Act 2013, all NZ insurers must provide one. It's typically 30 - 60 pages and available as a PDF on the insurer's website. Read it before you buy, not after you need to claim.

Key Sections to Check

  • Definitions - terms like "market value", "excess", and "total loss" have specific meanings in your policy
  • What is covered - the events and scenarios where you can make a claim
  • What is not covered - exclusions and limitations
  • Your obligations - what you must do to keep your cover valid (e.g. report changes, maintain the vehicle)
  • Claims process - how to make a claim, time limits, and what documentation you need

Your Disclosure Obligations

When you apply for car insurance, you have a legal duty to provide accurate information. If you fail to disclose something material (e.g. a previous claim, licence suspensions, vehicle modifications), the insurer can decline your claim or void the policy entirely. Under the Insurance Contracts Act 2024, the disclosure rules are being modernised, but honesty remains critical.

Making Changes Mid-Policy

If anything changes during your policy period, let your insurer know. Common changes that need to be reported:

  • Change of address (especially if you move to a higher-risk area)
  • Adding or removing drivers from the policy
  • Vehicle modifications (tinting, lowering, engine mods, bull bars)
  • Change of use (e.g. starting to use the car for ride-sharing or deliveries)
  • Change of parking situation (garage to street, or vice versa)

Car Insurance FAQs

Answers to the most common questions about car insurance in New Zealand.

Is car insurance compulsory in New Zealand?
No. Unlike most developed countries, car insurance is not legally required in NZ. ACC covers personal injuries from accidents, but there is no mandatory requirement for vehicle or property damage insurance. An estimated 5–20% of NZ drivers are uninsured, meaning if one hits you and you have no cover, you bear the full cost.
What types of car insurance are available in NZ?
Three main types: Comprehensive (covers your car and others' property, the most complete protection), Third Party, Fire & Theft (covers others' property plus fire/theft of your car), and Third Party Only (only covers damage you cause to others' property, the cheapest option).
How much does car insurance cost in NZ?
Comprehensive insurance averages $700–$1,200/year for a standard driver aged 30–50. Young drivers under 25 can pay $1,500–$3,000+. Third Party Fire & Theft averages $350–$600/year, and Third Party Only $200–$400/year. Your actual premium depends on vehicle, driver, and location factors.
What's the difference between agreed value and market value?
Agreed value: you and the insurer set a fixed payout amount when you start the policy. If the car is written off, you get this amount (minus excess). Market value: the insurer pays what the car is worth at the time of the claim, which may be less due to depreciation. Agreed value costs slightly more but provides more certainty.
Does ACC cover my car damage?
No. ACC only covers personal injury from accidents. It does not cover damage to your vehicle, other vehicles, or property. You need separate car insurance for all property damage. ACC is funded through vehicle rego levies and fuel tax.
What is a no-claims bonus (NCB)?
A discount on your premium for each year you don't make an at-fault claim. Most NZ insurers offer up to 60–65% off after 5+ claim-free years. Some providers offer NCB protection, letting you make one claim without losing your bonus. It's the single biggest way to reduce your premium over time.
What if the other driver is uninsured?
If you have comprehensive cover, your insurer will cover your vehicle repair/replacement and may pursue the uninsured driver to recover costs. If you only have third-party cover, you'll need to pursue the uninsured driver yourself through the Disputes Tribunal (claims up to $30,000) or District Court.
Does car insurance cover natural disasters in NZ?
Most comprehensive policies cover natural disaster damage, including flood, earthquake, storm, volcanic eruption, tsunami, and landslip. Unlike home insurance, there is no EQC component for vehicles; cover comes entirely from your private insurer. Some policies have a separate, higher excess for natural disaster claims.
Am I covered if someone else drives my car?
It depends on your policy. Some policies cover "any authorised driver", while others only cover named drivers. Unnamed or young drivers (under 25) may incur a higher excess, sometimes an additional $500–$1,500. Restricting to named drivers can lower your premium.
Should I insure an old car comprehensively?
A common rule of thumb: if your annual comprehensive premium is more than 10% of the car's value, consider stepping down to Third Party Fire & Theft or Third Party Only. For a car worth $3,000 with a $600 comprehensive premium, TPFT at ~$300 may make more financial sense.
Are personal belongings in my car covered?
Generally no. Personal items stolen from or damaged in your car (laptops, bags, etc.) are typically covered under your contents insurance, not car insurance. Some comprehensive policies include limited cover ($200–$500) for items in the car, but check your specific policy wording.
How can I lower my car insurance premium?
The top ways: compare quotes annually (don't auto-renew), increase your excess, maintain your no-claims bonus, bundle policies, pay annually instead of monthly, limit named drivers, park in a garage, install security devices, and choose the right level of cover for your car's value.
What happens if my car is written off?
You receive a payout of either the agreed value or market value (depending on your policy), minus your excess. The insurer takes ownership of the wreck. If you owe more on finance than the car is worth, you may want to consider GAP insurance to cover the shortfall.
Does my NZ car insurance cover me in Australia?
Generally no. NZ car insurance typically only covers vehicles within New Zealand, unless your policy specifically states otherwise. If you're renting a car in Australia, you'll need separate cover (either through the rental company or your credit card's rental vehicle benefit).
How do I complain about my insurer?
First, use your insurer's internal complaints process. If unresolved, escalate to the IFSO (Insurance & Financial Services Ombudsman), which is free. All licensed NZ insurers must belong to an approved dispute resolution scheme. You can also check if your insurer is registered on the Financial Service Providers Register (FSPR).

Car Insurance Glossary

Key terms explained in plain language.

Excess
The amount you pay out of pocket when making a claim. Higher excess = lower premium.
No-Claims Bonus (NCB)
A discount earned for each claim-free year. Can reach up to 60–65% after 5+ years.
Agreed Value
A fixed payout amount set when you take out the policy. Paid if the car is written off.
Market Value
The car's current value at the time of a claim, determined by market conditions.
Third-Party Liability
Cover for damage you cause to other people's vehicles or property.
Comprehensive
Full cover: damage to your car (accidents, theft, fire, weather) plus third-party liability.
Premium
The amount you pay for your insurance, monthly or annually.
Underwriter
The company that actually provides the insurance cover. Some brands are underwritten by larger insurers behind the scenes.
Write-Off
When repair costs exceed the vehicle's value. The insurer pays out and takes the wreck.
ACC
Accident Compensation Corporation. NZ's no-fault personal injury scheme. Covers injury, not property.
IFSO
Insurance & Financial Services Ombudsman. Free dispute resolution for insurance complaints.
GAP Insurance
Covers the gap between your car's market value and what you owe on finance if it's written off.

Car Insurance by Brand

Find insurance information specific to your car's make. Compare cover options, common claims, and tips for every major brand sold in New Zealand.

Alfa Romeo → Aston Martin → Audi → BAIC → Bentley → BMW → BYD → Chery → Chevrolet → Chrysler → Citroen → Cupra → Daihatsu → Dodge → DS Automobiles → Ferrari → Fiat → Ford → Foton → Geely → Genesis → GWM → HAVAL → Holden → Honda → Hyundai → Isuzu → Jaguar → Jeep → Kia → Lamborghini → Land Rover → LDV → Lexus → Lotus → Mahindra → Maserati → Mazda → McLaren → Mercedes-Benz → MG → MINI → Mitsubishi → Nissan → Peugeot → Polestar → Porsche → Ram → Renault → Rolls-Royce → Skoda → Subaru → Suzuki → Tesla → Toyota → Volkswagen → Volvo →

Disclaimer: The information on this page is for informational purposes only and does not constitute financial, insurance, or legal advice. All pricing shown is indicative and based on publicly available data and typical driver profiles as of early 2026. Actual premiums will vary based on your vehicle, location, driving history, and chosen cover level. These figures are not quotes - always obtain a personalised quote directly from the insurer.

Note: Compare.org.nz earns referral fees from some providers featured on this page. Sponsored content is clearly labelled and does not affect the completeness or order of our comparisons. Features, pricing, and policy terms may change without notice - always verify directly with the insurer before purchasing. For personalised financial guidance, consider consulting a licensed financial adviser. *Price variance figures are estimates based on general market observations.

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