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When deciding between two car insurers in New Zealand, the most important factors are what each policy actually covers, how much you'll pay if you make a claim, and how reliably the insurer handles claims. The cheapest premium isn't necessarily the best value.

I'd compare the two insurers in this order.

1. What the policy covers

This is the most important starting point because two policies can have similar prices but very different levels of protection.

Check whether both policies include:

• Accidental damage: Covers damage to your own car in an accident, subject to the policy terms.
• Theft and attempted theft: Check what's covered and any security requirements.
• Weather damage: Including flooding, storms, hail and other natural events, subject to exclusions.
• Windscreen and window cover: Check whether glass claims are covered without an excess.
• Third-party liability: Covers your legal liability for damage you cause to other people's property, including their vehicles.
• Replacement vehicle or transport costs: Check whether a temporary vehicle is provided after an accident or theft, and for how long.

Also check exclusions that matter to you, such as who is permitted to drive the car, business use, modifications, and where the car is kept.

What matters most: Choose the policy that protects you against the financial risks you couldn't comfortably afford to cover yourself.

2. The excess you'll have to pay

The excess is the amount you contribute towards a claim.

Compare:

• The standard excess.
• Any additional excess for young or inexperienced drivers.
• Whether different excesses apply to theft, glass damage or other types of claims.
• Whether an excess applies when an accident wasn't your fault.
• Whether you can reduce the excess by paying a higher premium.

For example, imagine these two hypothetical policies:

Cost	Insurer A	Insurer B
Annual premium	NZ$900	NZ$800
Standard excess	NZ$400	NZ$900
Annual premium saving	—	NZ$100

Insurer B saves you $100 a year, but you could pay an extra $500 in excess if you need to make a claim.

If you have an accident in the first year, that higher excess could wipe out several years of premium savings.

The key question: Could you comfortably afford the excess if you needed to claim tomorrow?

3. What you'll receive if your car is written off

This can make a substantial difference if your car is stolen and never recovered or damaged beyond repair.

Compare these two types of cover:

• Agreed value: You and the insurer agree on your car's insured value, subject to the policy terms and any applicable deductions.
• Market value: The insurer pays what the car was worth immediately before the loss, as determined under the policy.

Check the maximum insured amount and whether the agreed value changes at renewal.

If your car would be expensive to replace, I'd pay particular attention to this feature. A lower premium may not be worth it if the other policy offers a significantly lower payout.

Source: Consumer NZ's car insurance buying guide.

4. Claims service and customer satisfaction

An insurer's real value becomes apparent when something goes wrong.

Look into:

• Claims handling: Is the process straightforward, and does the insurer communicate clearly?
• Repair quality: Does the insurer use approved repairers, and are repairs guaranteed?
• Repairer choice: Can you choose your own mechanic or panel beater?
• Claims turnaround: How quickly does the insurer assess claims and arrange repairs?
• Customer feedback: What do customers say about resolving claims and complaints?

Independent comparisons can help you assess these factors.

For New Zealand-specific information, see Consumer NZ's car insurance comparisons and satisfaction research. You can also check Canstar's car insurance ratings.

I would generally favour an insurer with a stronger record of claims service over one offering a small saving but a noticeably worse customer experience.

5. Additional benefits

Once you've compared the essential cover, look at the extras.

Feature	Why it matters
Windscreen cover	May let you repair or replace glass without paying an excess.
Rental car cover	Helps you stay mobile while your car is being repaired or replaced.
Roadside assistance	Useful if you want breakdown support. Check whether it's included or costs extra.
New-car replacement	May provide a replacement vehicle if a relatively new car is written off, subject to eligibility.
Lost keys and locks	Can help cover replacement keys or lock repairs.
No-claims bonus protection	May reduce the effect of certain claims on your discount, depending on the policy.
Towing costs	Can help with the cost of moving a damaged or undriveable vehicle.

Don't pay extra for benefits you don't need, but don't overlook ones you would otherwise have to pay for yourself.

6. The true annual cost

Compare the total cost rather than just the advertised premium.

Include:

• The annual premium, including any applicable fees.
• Any instalment fees if you pay monthly.
• Optional extras you actually want.
• The excess you would pay for a typical claim.
• Any additional excesses that might apply to you or your vehicle.

For example, a policy costing $100 more per year might be better value if it has a substantially lower excess and includes windscreen cover.

For a fair comparison, keep the cover level, insured value, excess and listed drivers as similar as possible. Consumer Protection NZ also recommends comparing policy benefits rather than choosing on price alone. Read its car insurance guidance.

7. Policy exclusions and conditions

This is easy to overlook, but it can be one of the most consequential differences.

Check the policy wording for:

• Whether all regular drivers must be listed.
• Restrictions relating to age and licence type.
• Requirements for securing or storing the vehicle.
• Whether modifications and accessories are covered.
• Whether business use is permitted.
• What happens if you drive under the influence of alcohol or drugs.
• Any exclusions that apply to your particular circumstances.

Make sure you answer the insurer's questions accurately and disclose relevant information. A policy is only useful if it provides cover for the way you actually use your car.

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My recommended way to choose

If I were comparing two New Zealand car insurers, I would use this priority order:

Priority	Factor	What I'd look for
1	Cover and exclusions	Protection that suits my needs, without significant gaps.
2	Excess	An amount I could comfortably afford if I had to claim.
3	Payout if the car is written off	A fair and sufficient insured value.
4	Claims service	Good independent customer feedback and reliable claims handling.
5	Premium	The best price for comparable cover.
6	Additional benefits	Useful extras included at a reasonable cost.

My rule of thumb: If both insurers offer essentially the same cover and excess, I'd lean towards the one with the better claims-service reputation. If their service records are comparable, I'd choose the cheaper policy.

Want help comparing your two insurers?

Which two car insurance companies are you deciding between?

If you tell me their names, I can compare their policies, excesses, key exclusions, claims reputation and value for money in New Zealand, and help you work out which is the better choice.