# S-P10-M-02: Do car insurers get lots of complaints, and how can I compare them fairly?

Collected 11 October 2026

[Car insurance study](https://nzbrands.ai/research/insurance/car-insurance)

## ChatGPT

Answer ID: cb19b4c7-000b-4798-b1b9-7cba9619cc9a

Yes — car insurers can receive a substantial number of complaints, including about claim delays, declined claims, repair quality, excess payments and communication. But a large number of complaints doesn't automatically mean an insurer is bad, and a company with fewer complaints isn't necessarily better.

In New Zealand, the fairest way to compare car insurers is to look at complaints relative to the number of customers or claims, how serious the complaints are, how they're resolved, and what the policy actually covers.

## 1. Where to check complaints in New Zealand

1. Insurance Council of New Zealand (ICNZ)

Best starting point for official complaint figures

Its [published complaints data](https://www.icnz.org.nz/individuals/making-a-complaint/) includes complaints investigated by independent dispute-resolution schemes, with outcomes recorded by insurer.

2. Financial Markets Authority (FMA)

For conduct and claims-handling concerns

The [FMA's insurance guidance](https://www.fma.govt.nz/consumer/everyday-finance/insurance/) explains your rights and what insurers are expected to do when treating customers fairly.

3. Consumer NZ

For policy comparisons and customer research

Its [car insurance buying guide](https://www.consumer.org.nz/money/insurance/car-insurance/guide) and [policy comparison service](https://www.consumer.org.nz/money/insurance/car-insurance/compare) help you compare premiums, policy benefits and customer satisfaction.

## 2. What do the actual complaint figures show?

ICNZ's figures for the 2024 calendar year provide a useful example. Across participating insurers, the data recorded:

- 1,194,042 insurance claims received across different types of insurance.
- 243 complaints closed by external dispute-resolution schemes.
- Of those complaints, 3 were upheld in the customer's favour, 194 in the insurer's favour, and 46 resulted in an agreed or partially resolved outcome. [How to Make an Insurance Complaint (NZ)](https://www.icnz.org.nz/individuals/making-a-complaint/)

Here are some figures for individual insurers.

| Insurer | Claims received | Complaints closed |
| --- | --- | --- |
| AA Insurance | 209,026 | 10 |
| IAG NZ | 525,636 | 96 |
| FMG | 88,065 | 18 |
| Tower | 66,480 | 32 |
| Vero | 119,748 | 25 |
| Hollard | 91,725 | 50 |

Source: [ICNZ complaints data, 2024](https://www.icnz.org.nz/individuals/making-a-complaint/). [How to Make an Insurance Complaint (NZ)](https://www.icnz.org.nz/individuals/making-a-complaint/)

Important limitations: these are not car-only complaints. They cover personal insurance, including house, contents, motor, travel and credit insurance. They also count only complaints that reached an external dispute-resolution scheme and received a decision, not all complaints made directly to insurers.

That means you cannot conclude from this table alone that one car insurer is better or worse than another. It is a useful screening tool, not a definitive ranking.

## 3. How to compare car insurers fairly

I would use five criteria, in this order.

1. Compare the actual cover

Check whether each policy is comprehensive, third-party fire and theft, or third-party only. Then compare:

- Agreed value versus market value if the car is written off.
- Theft, vandalism, weather damage and accidental damage.
- Windscreen cover, towing and hire-car benefits.
- Whether you can choose your own repairer.
- Exclusions, limits and any special theft excesses.

Two policies with similar names can offer different protection. [Car insurance buying guide](https://www.consumer.org.nz/money/insurance/car-insurance/guide)[Car insurance](https://www.consumerprotection.govt.nz/help-product-service/cars/paying-registering-insuring-car/car-insurance)

2. Look at complaints and their outcomes

Give more weight to recurring problems involving claim handling, delays, poor communication or disputed decisions than to the raw number of complaints.

Where possible, compare the same period and the same type of insurance, and look for complaint rates relative to claims or customers. Also distinguish complaints upheld against an insurer from complaints where the insurer's decision was upheld.

3. Check customer satisfaction and independent reviews

Look for research from Consumer NZ, recent customer surveys and reviews that describe an actual claim experience.

Read the details rather than relying on star ratings. A complaint about a premium increase is different from a complaint about an insurer refusing a claim.

4. Compare the total cost, not just the premium

Get at least three quotes using the same vehicle details, drivers, cover type, insured value and excess. Check additional excesses for young drivers or theft, instalment fees and discounts that expire.

A cheaper policy may cost more when you need to claim. [Car insurance buying guide](https://www.consumer.org.nz/money/insurance/car-insurance/guide)

5. Investigate the repair and claims process

Check who arranges repairs, whether approved repairs have a guarantee, whether a hire car is provided after an accident, and how the insurer communicates claim decisions.

These practical details can make a significant difference when something goes wrong. [Car insurance buying guide](https://www.consumer.org.nz/money/insurance/car-insurance/guide)[Insurance companies have improved their processes but more to do in extreme events](https://www.fma.govt.nz/news/all-releases/media-releases/insurance-processes-improved-but-more-to-do-extreme-events/)

## 4. A simple scorecard you can use

Once you have three or four quotes, assess each on the same criteria. This avoids letting the cheapest price or the loudest online complaints dominate your decision.

## My recommendation

Start with ICNZ's complaint data, then use Consumer NZ's comparison research and obtain at least three like-for-like quotes. Treat complaint figures as a warning signal to investigate, rather than a league table.

For a more meaningful comparison, the key is to compare the insurers' car-specific claims experiences, policy wording and costs for your particular vehicle.

## Gemini

Answer ID: dab5f15d-d9bf-4a99-a1bf-082651c5f263

Yes, car insurers receive a significant volume of complaints. Vehicle insurance consistently generates a high number of disputes and consumer enquiries in New Zealand—the Insurance & Financial Services Ombudsman (IFSO) Scheme, for instance, handles over 1,000 complaint enquiries annually regarding vehicle insurance alone. Common pain points include claims being declined (often due to non-disclosure, unroadworthy tires/WOF issues, or driver licence restrictions), disputes over payout amounts for total write-offs, and delays in repair times.

To cut through the marketing and compare car insurers fairly, use this step-by-step framework:

### 1. Compare "Like with Like" Cover Types
Don't just look at the price tag; make sure you are comparing the same tier of insurance:
* **Comprehensive:** Covers damage to your own car, theft, fire, and legal liability for damage you cause to other people's property.
* **Third Party, Fire & Theft:** Covers damage you cause to others, plus your own car if it’s stolen or catches fire.
* **Third Party Only:** The bare minimum; only covers damage you cause to other people's vehicles or property.

### 2. Check Agreed Value vs. Market Value
* **Market Value:** The insurer pays what the car is worth right before the accident. These policies are usually cheaper, but disputes often happen if you disagree with their valuation.
* **Agreed Value:** You and the insurer lock in a set payout amount for the year. This provides certainty, though premiums are generally slightly higher.

### 3. Evaluate the Fine Print and Exclusions
The cheapest policy can often turn out to be the most expensive if a claim is denied. Review these details before committing:
* **Excess Amounts:** Check the standard excess, and look out for extra penalties for young, inexperienced, or restricted licence drivers.
* **Named Driver vs. Any Driver:** Policies restricted to named drivers are cheaper, but you won't be covered if someone else borrows your car in an emergency.
* **Added Perks:** Check if things like windscreen glass cover, roadside assistance, or a rental car following an accident are included or cost extra.

### 4. Look at Independent Consumer Research
Before buying, check independent satisfaction ratings and award trackers (such as **Consumer NZ’s insurance satisfaction survey** or **Canstar's car insurance star ratings**). These platforms evaluate insurers based on real customer experiences, claims handling efficiency, and overall value rather than just upfront cost.

***

Are you currently trying to choose between a few specific car insurance providers, or are you looking at a renewal notice from your current insurer?

## AI Overviews

Answer ID: 99605032-945a-4d75-8444-e7e073040222

**Yes, car insurers in New Zealand do get a notable number of complaints**, but context is highly important. Because major insurers cover hundreds of thousands of vehicles, they naturally generate a high volume of disputes. According to the Insurance Council of New Zealand (ICNZ), while millions of claims are successfully processed annually, hundreds of unresolved cases ultimately escalate to independent external dispute schemes each year.

The most common complaints usually stem from **claims being declined** (often due to policy exclusions or non-disclosure), **disagreements over vehicle valuation** (market value vs. agreed value), and **processing delays**.

* * *

How to Compare Car Insurers Fairly

To find out who actually treats customers well rather than just looking at the cheapest price, use these three independent, fair benchmarks:

1\. Look at Independent Customer Satisfaction Awards

Instead of relying on online forums or selective Google reviews, look at trusted, structured consumer surveys:

 * **Consumer NZ (People's Choice):** Consumer NZ runs comprehensive satisfaction surveys. Mutual insurers like **MAS (Medical Assurance Society)** and **FMG (Farmers Mutual Group)** consistently score at the top for customer satisfaction, communication, and value.

 * **Canstar Awards:** Canstar NZ reviews insurers using two distinct lenses—the _Most Satisfied Customers Award_ (frequently won by MAS) and the _Outstanding Value Awards_ (which look closely at policy benefits relative to price, often featuring brands like AA Insurance, AMI, State, and Tower).

2\. Check Financial Strength Ratings

A fair comparison includes an insurer's ability to pay out major claims. In New Zealand, insurers are legally required to display their **Financial Strength Rating** (such as A+, A, or A- from agencies like S&P or A.M. Best) on their websites. A higher rating means greater financial stability.

3\. Compare Policy "Features" Over Price alone

When using real-time comparison tools like [Quashed Market Scan](https://quashed.co.nz/) or reviewing policies on Compare Insurance NZ, evaluate the policy details alongside the quote:

 * **Excess Structures:** Ensure you are comparing standard excesses equally. Check if the insurer adds extra excesses for drivers under 25 or unnamed drivers.

 * **Policy Inclusions:** Does the policy include automatic windscreen cover without excess, a courtesy car, or built-in roadside assistance?

 * **Agreed Value vs. Market Value:** An "Agreed Value" policy protects you from surprises by locking in exactly what the insurer will pay if your car is written off.

* * *

What to Do if You Have a Dispute

If you run into issues with an insurer, the fairness of the system is backed by law. Every New Zealand insurer must belong to a free, independent dispute resolution scheme. If you go through their internal complaints process and reach a "deadlock," you can take your case to the Insurance & Financial Services Ombudsman (IFSO) or Financial Services Complaints Ltd (FSCL) for a free, binding review.

If you are currently looking at a few specific policies, let me know **which insurance brands** you are deciding between or **what specific coverage feature** (like roadside assist or low excess) matters most to you, and I can help you break down the differences!

## Google AI Mode

Answer ID: 22ace534-8155-443c-b237-528403cd9e9f

Do car insurers get lots of complaints?

Yes, general insurance—which includes motor vehicle claims—frequently generates a high volume of disputes and inquiries in _New Zealand_. According to data from the [Insurance & Financial Services Ombudsman (IFSO) Scheme](https://www.ifso.nz/), general insurance makes up roughly two-thirds of all dispute sectors handled by the office, with motor vehicle insurance consistently representing a substantial portion (around 19% to 20% of disputes).

The primary triggers for car insurance complaints and disputes usually involve:

 * * **Non-disclosure or misrepresentation:** Failing to declare vehicle modifications, driver history, or regular drivers.

 * **Claim declinations or delays:** Disagreements over whether an accident breaches policy terms (e.g., driving conditions, unroadworthy tires like smooth tread).

 * **Valuation disputes:** Mismatches between what a policyholder expects for a payout versus the assessed market value or agreed value terms.

 * **Cost-of-living pressures:** Rising premium costs have also heightened customer expectations and friction during the claims process.

 *

* * *

How to compare car insurers fairly

Comparing car insurance policies requires looking past just the headline monthly or annual premium. To build an accurate, apples-to-apples comparison, evaluate options using these steps:

 1. **Check the level of cover:** Ensure you are comparing identical tiers—whether that is Comprehensive, Third Party Fire & Theft, or Third Party Only. For comprehensive policies, check whether they use _market value_ or _agreed value_ for your specific vehicle.
 2. **Review the excess structure:** Note the standard excess, and check for additional or hidden excesses (such as extra fees for young, inexperienced, or newly licensed drivers).
 3. **Examine policy benefits and exclusions:** Dig into the fine print for extras like emergency accommodation, towing/road-clearing costs, windscreen replacement limits, and rental car cover after an accident.
 4. **Compare customer satisfaction and performance:** Look at independent consumer resources such as Consumer NZ Car Insurance Guide to see how different brands score on customer service, claims handling, and overall satisfaction. [Consumer NZ]
 5. **Get multiple quotes:** Gather direct quotes from at least three different providers using matching driver details and vehicle profiles to see who offers the best balance of price and protection. [Consumer NZ]

If you'd like, let me know:

 * Your vehicle's **make, model, and year**
 * The **type of cover** you are looking for (Comprehensive vs. Third Party)

I can help outline what specific policy features and terms you should keep an eye out for.