How to choose comprehensive car insurance in New Zealand

When comparing comprehensive car insurance in NZ, don't choose on price alone. The biggest differences between policies are often the amount you'll receive if your car is written off, what happens if someone else damages your car, the excess you must pay, and the exclusions that could leave you out of pocket.

Here's what I'd compare before choosing a policy.

1. The most important things to compare

What to compare	What to look for	Why it matters
Premium	Annual and monthly cost, including any instalment fees	A cheap policy may have a higher excess or less cover.
Agreed value vs market value	Whether your car is insured for an agreed amount or its market value at the time of a claim	This can make a substantial difference if your car is stolen or written off.
Excess	Standard excess and any additional excesses	A lower premium can come with a much higher out-of-pocket cost when you claim.
Accidental damage	Cover for collisions, reversing into objects, and accidental damage to your own car	Check the policy's specific terms and exclusions.
Theft and attempted theft	Whether theft, break-ins, and damage caused during attempted theft are covered	Particularly important if you park on the street or leave your car in public car parks.
Storm, flood and other natural events	Cover for flooding, hail, falling trees, and other weather-related damage	Natural-event cover and exclusions can differ between policies.
Damage to other people's property	The liability limit if you damage another vehicle or someone's property	Check that the limit is sufficient for a serious accident.
Windscreen and window cover	Whether glass claims are excess-free and whether there is an annual limit	Windscreen replacement can be expensive, especially for cars with cameras or driver-assistance systems.
Repairs and parts	Approved repairers, genuine parts, and any repair guarantees	Important for newer, imported, luxury, and electric vehicles.
Rental car or alternative transport	Whether a replacement vehicle is provided after an accident, theft, or both	Can help you avoid unexpected transport costs while your car is unavailable.

My recommendation: Start by comparing the insured value, excess, and exclusions. These can matter much more than a small difference in annual premiums.

2. Agreed value vs market value: which is better?

This is one of the most important decisions when insuring your car in NZ.

• Agreed value: You and your insurer agree on an insured value for the policy period.
• Market value: Your insurer assesses what your car was worth immediately before the loss, according to the policy's valuation terms.

These values matter most if your car is written off or stolen and never recovered. The payout is subject to the policy terms and any applicable deductions. Source: New Zealand Consumer Protection.

Example

Suppose you own a car worth $18,000.

	Policy A	Policy B
Valuation basis	Agreed value	Market value
Example insured/payout valuation	$18,000	$15,500
Excess	$500	$500
Illustrative payout after excess	$17,500	$15,000

These are illustrative figures, not actual insurer quotes.

My recommendation: If you want certainty about your car's insured value, look for an agreed-value policy. Check that the agreed amount reflects what your car is worth and review it at renewal.

Market-value cover can also be suitable, but check how the insurer determines market value and whether the sum insured limits its payout.

3. Compare the excess carefully

The excess is the amount you contribute towards an accepted claim.

For example, if repairs cost $4,000 and your applicable excess is $750, you would generally pay $750 and your insurer would cover the remaining $3,250.

However, some policies have additional excesses on top of the standard excess.

Check for:

• Standard excess: The amount you pay for an ordinary claim.
• Young-driver excess: An additional amount if a younger person is driving.
• Inexperienced-driver excess: An additional amount for drivers who have held their licence for a limited time.
• Undisclosed-driver excess: Potential additional costs if someone driving the car isn't covered under the policy terms.
• Windscreen excess: Whether glass claims have a separate excess or are excess-free.
• Theft or other special excesses: Whether particular types of claims attract additional charges.

Not every insurer applies all these excesses.

Should you choose a higher excess?

A higher excess can reduce your premium, but you need to be comfortable paying it if you have an accident.

For example:

	Lower-excess policy	Higher-excess policy
Annual premium	$1,500	$1,300
Excess	$400	$900
Annual premium saving	—	$200
Extra cost if you claim	—	$500

In this example, the higher-excess policy saves $200 annually, but costs an additional $500 when you make a claim.

Compare the premium savings against the additional excess and how easily you could afford it. Consumer Protection NZ also recommends checking whether the excess is manageable before choosing a policy. Read the official guidance.

4. Check the exclusions, not just the benefits

Two policies labelled comprehensive can have quite different exclusions.

Read the policy wording and check the following areas.

Area	Questions to ask
Who can drive?	Are all household drivers covered? Are there age restrictions or additional excesses?
Business use	Is the car covered for commuting, work travel, deliveries or rideshare driving?
Modifications	Are aftermarket wheels, performance modifications, accessories and audio equipment covered?
Driving overseas	Does cover extend outside New Zealand, and if so, where?
Mechanical failure	Is damage from an accident covered while mechanical breakdown itself is excluded?
Wear and tear	Are rust, gradual deterioration, existing damage and worn components excluded?
Unroadworthy vehicles	Could a claim be declined if the car has an unsafe or illegal defect?
Alcohol and drug impairment	What restrictions apply when a driver is impaired?
Keys and security	What security precautions must you take, particularly after losing keys or if your car is stolen?

Pay particular attention to whether your actual use of the car matches the use declared on the policy.

For example, if you use your car for paid deliveries but insure it only for private use, you could encounter problems with a claim.

You also need to disclose relevant information accurately and notify your insurer of material changes. Failure to do so can affect your cover. Source: Consumer Protection NZ.

5. Compare the additional benefits

Optional benefits can make a meaningful difference, particularly if you rely on your car every day.

Here are the extras I'd look for.

Benefit	Why it matters	What to check
Windscreen and window cover	Modern windscreens can be expensive to replace.	Whether replacement is excess-free and whether there are limits.
Rental car after an accident	Keeps you mobile while your car is repaired.	Maximum rental period and daily allowance.
Rental car after theft	Helps if your car is stolen and you're waiting for a settlement.	Whether theft is included and how long cover lasts.
Towing and storage	Covers some costs after an accident or breakdown.	Whether breakdown towing is included or requires an add-on.
New-car replacement	May provide a replacement vehicle rather than a cash settlement.	Vehicle age limits, eligibility requirements and availability in NZ.
Personal belongings	May cover certain items stolen from your car.	Dollar limits and exclusions; expensive items may need separate cover.
Child car seats	Can help replace seats damaged in an accident.	Whether replacement is covered and what conditions apply.
Emergency accommodation or transport	Useful after an accident far from home.	Eligible expenses and maximum benefits.
Repair guarantee	Offers reassurance about the quality of approved repairs.	Whether the guarantee lasts for as long as you own the car or for a specified period.

Don't automatically pay extra for every benefit. Focus on the ones that would be expensive or difficult for you to go without.

For example, rental-car cover could be particularly valuable if you need your car to commute to work and have no alternative transport.

6. Check how the insurer handles repairs and write-offs

A good policy is about more than the payout. The claims process and repair arrangements matter, too.

I would compare:

• Choice of repairer: Can you choose your own mechanic or panel beater, or must you use the insurer's approved network?
• Parts used: Does the policy specify genuine manufacturer parts, or can alternative parts be used?
• Repair guarantees: What protection do you receive if repair work is faulty?
• Write-off decisions: How does the insurer decide whether a car is uneconomical or unsafe to repair?
• Salvage: What happens to the damaged car after a total-loss settlement?
• Claims service: How easy is it to lodge a claim, communicate with the insurer and track progress?
• Repair delays: What support is available if parts are difficult to source?

These points are especially important if you own an imported car, a luxury vehicle, a hybrid or an EV, where parts and repairs may be expensive.

I'd also look at customer satisfaction and complaints rather than relying solely on advertising or the insurer's headline rating.

Consumer NZ publishes a car insurance buying guide and policy comparison, including research on premiums, policy features and insurers.

7. Check the cover suits your particular car

The best policy depends partly on what you drive.

If you have a new or expensive car

Prioritise:

• An appropriate agreed value.
• New-car replacement cover, if available.
• Adequate protection for expensive repairs.
• Genuine parts and suitable repair arrangements.

If you have an older car

Prioritise:

• An appropriate premium relative to the car's value.
• A manageable excess.
• A realistic insured value.
• Whether comprehensive cover is worth the cost compared with third-party alternatives.

For an older car, compare the annual premium and excess against the amount you could realistically receive if it were written off.

If you have a hybrid or electric vehicle

Check:

• Whether the policy covers your particular vehicle and battery configuration.
• How battery damage is assessed after an accident.
• Repairer expertise and access to replacement parts.
• Towing arrangements if the vehicle cannot be driven.
• Whether charging cables and accessories are covered.

Don't assume every policy handles EVs or hybrids in exactly the same way.

If other people drive your car

Check:

• Whether occasional drivers are covered.
• Whether you must list regular drivers.
• Any excess for drivers under 25.
• Any restrictions on learner or restricted licence holders.

If a partner, teenager or flatmate regularly drives your car, this can materially affect both the premium and the cover you need.

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8. Which NZ insurers should you compare?

I'd start by obtaining quotes from at least three insurers, using exactly the same vehicle details, insured value, drivers and excess wherever possible.

Some options to investigate are:

• AA Insurance
• AMI
• State Insurance
• Tower
• Cove
• AMP

These are starting points, not a ranking of the best insurers. Eligibility, prices, excesses and policy features vary.

For a broader comparison, use:

• Consumer NZ's car insurance comparison — independent buying guidance and policy research.
• Canstar NZ's car insurance comparison — a way to explore insurers and compare policy features.

Important: Quotes depend on factors such as your vehicle, age, driving history, location and claims history. An insurer that is cheapest for one driver might be expensive for another.

Also compare the total annual cost, including instalment fees if you pay monthly. Check the current policy wording rather than relying on a comparison website's summary.

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9. My recommended comparison checklist

When you have three or four quotes, put them side by side using this checklist.

Comparison item	Insurer A	Insurer B	Insurer C
Annual premium
Insured value
Agreed or market value
Standard excess
Additional driver excesses
Windscreen excess
Third-party property liability limit
Rental car after an accident
Rental car after theft
Towing cover
New-car replacement
Choice of repairer
Genuine parts provisions
Key exclusions
Customer service and claims reputation

The liability limit, repair provisions and optional benefits are worth comparing carefully because they can differ even when two premiums look similar.

How I'd make the final decision

I'd use this order:

1. Eliminate unsuitable policies. Remove policies that don't adequately cover your vehicle, its use or the people who drive it.
2. Compare insured values. Make sure you're comparing like with like.
3. Compare excesses. Decide what you could comfortably afford to pay after an accident.
4. Compare the policy wording. Focus on exclusions and benefits that matter to you.
5. Compare the annual premiums. Once the cover is broadly equivalent, price becomes a more useful deciding factor.
6. Check the claims experience. Consider customer feedback and the insurer's claims service.

The cheapest comprehensive policy isn't necessarily the best value. I'd favour a competitively priced policy with an appropriate insured value, a manageable excess and clear claims provisions over one that saves a small amount but leaves important gaps in cover.

Let me narrow it down for your situation

If you'd like, I can help you compare suitable comprehensive car insurance options available in New Zealand.

What car do you have (make, model and year)?

With that information, I can make the comparison more relevant to your vehicle and identify which policy features are most important to prioritise.