Car Insurance

Compare car insurance in New Zealand at Canstar. FMG, AA Insurance, AMI, ANZ, ASB, BNZ, NZI, State, Tower, Vero and Westpac on Overall Satisfaction, Claims Outcome, Claims Process, Claims Lodgement, Clarity of Policy, Communication, Quality of Service and Value for Money.

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* Overall satisfaction is an individual rating and not a combined total of all ratings. Brands with equal overall satisfaction ratings are sorted by the mean overall satisfaction score as rated by consumers.
Canstar research finalised in June and published in July 2020.

See our Ratings Methodology.

Most Satisfied Customers Award | FMG

FMG Car Insurance rated number one for customer satisfaction

 

FMG’s 5 Star Car Insurance Drives Customer Satisfaction

Canstar’s Most Satisfied Customers Award | Car Insurance steers you in one direction: FMG

After our homes, our cars are often our most valuable assets and warrant protection. That’s why, although car insurance is not required by law, most people have some level of cover. In the event of an accident, it provides peace of mind and softens the financial impact of expensive car repairs.

However, car insurance doesn’t come cheap, and the levels of service offered by different providers can vary greatly. So, as part of our mission to inform consumers of the best car insurance providers NZ has to offer, Canstar canvassed the opinions of 2169 New Zealanders who have car insurance and have made a claim within the past three years across a range of categories, to measure and track their satisfaction.

To decide which car insurance provider offers the best level of customer satisfaction, each was rated across the following categories:

  • Overall Satisfaction
  • Claims Lodgement
  • Claims Outcome
  • Claims Process
  • Clarity of Policy
  • Communication
  • Quality of Service
  • Value for Money

Excelling in every category, FMG takes home Canstar’s award for Most Satisfied Customers | Car Insurance. The newcomer to Canstar’s awards blitzed the competition in this year’s ratings, earning 5 Star ratings in every category. The only other car insurance provider to earn 5 Star ratings is BNZ, with top marks for Claims Outcome and Value for Money. Deserving of an honourable mention, AA Insurance also scored highly, with 4 Star ratings across the board.

What customers’ want

While value for money is an important driver of satisfaction for those in our survey (24%), Quality of Service is paramount, but only just: 25%. This is understandable for anybody who has had the misfortune to be in a traffic accident. For in times of stress and worry, as after a crash, you expect a high level of service from your insurer and clear communication about the claims and repair process. Overall, the main drivers of customer satisfaction:

Drivers of satisfaction %
Quality of Service 25%
Value for Money 24%
Communication 15%
Claims Outcome  13%
Clarity of Policy 11%
Claims Process 8%
Claims Lodgement 4%

Car insurance: Canstar has it covered!

Even though comprehensive insurance isn’t mandatory in NZ, the majority of those in our survey opt for full cover: 86%. Just 11% have third party, fire and theft, and even fewer have only third party insurance, 5%, leaving 3% uninsured. 

Of the different claims that were made by our respondents, nearly half, 46%, were to fix damage to their own cars, while 30% called on their insurance after being involved in an accident.

In terms of spend, the average car insurance premium paid by our respondents is $830. And to save money, half bundle their car and home and contents insurance with the same provider. Although prices fluctuate dramatically with location, from $1128 in Northland and $949 in Auckland, to $531 in Taranaki and $519 in Nelson. 

Given the high level of comprehensive insurance enjoyed by those in our survey, it’s clear that Kiwis value the peace of mind that full cover provides. But, as mentioned above, it’s not just price that drives our choice of insurer. We need to know that our provider will be there with a superior level of help and service when we need it most. 

So, if you’re on the lookout for a car insurance company that you can rely on, let Canstar’s Satisfaction Ratings steer you in the right direction, to FMG, which has our 5 Star seal of approval!

Canstar surveyed 5250 New Zealand consumers across a range of categories to measure and track customer satisfaction, via ISO 26362 accredited research panels managed by Qualtrics. The outcomes reported are the results from car insurance policy holders who have made a claim within the past 12 months. In this case, 2169 New Zealanders.

Brands must have received at least 30 responses to be included. Results are comparative and it should be noted that brands receiving three stars have still achieved a satisfaction measure of at least six out of 10. Not all brands available in the market have been compared in this survey. The ratings table is first sorted by star ratings and then by mean overall satisfaction. A rated brand may receive a ‘N/A’ (Not Applicable) rating if it does not receive the minimum number of responses for that criteria.

About Car Insurance

What is car insurance?

With so many car insurance policies on the market, it’s easy to get confused about what they do and don’t offer. Although policies offered by different car insurers will vary, the types of car insurance can be boiled down to three levels of cover.

  • Third party insurance: The most basic type of insurance, it covers all or part of your legal liability if you harm another person or damage their property. You will not be covered for damage to your own vehicle.
  • Third party, fire & theft cover: This is the same kind of insurance as standard third party, with additional cover for fire damage and theft. Some insurance companies will have policies that also cover damage caused by natural disasters.
  • Comprehensive insurance: This is the highest level of car insurance, covering you for almost anything that could happen on the road, or by the side of it. If you damage yours or another person’s property, you won’t be required to pay the full amount for repairs – only the pre-agreed excess amount.

Glossary of terms

Please note that these are a general explanation of the meaning of terms used in relation to car insurance. Your insurance provider may use different wording and you should read the terms and conditions of your insurance policy carefully to understand what you are and are not covered for. Refer to the product disclosure statement (PDS) from your provider.

Account-keeping fee / Ongoing fee: A monthly account-keeping fee that is charged by the lender to cover the administration cost of maintaining your policy. Alternatively, you may be charged an annual fee rather than an ongoing account-keeping fee.

Anti-lock braking system (ABS):  A safety system that stops the wheels from locking up when you brake, which decreases the risk of skidding. Also known as an anti-skid brake system.

Agreed value: The sum for which your car is insured, which has been fixed by agreement between the insurer and the car owner. The option for your sum insured is to insure your car for the market value (see ‘Market value’ below).

Comprehensive: The highest level of insurance policy, which covers your car for damage to other people, damage to the property of others, damage to your own car if it is damaged or lost because of fire or theft, and accidental damage to your own car, regardless of who caused the damage. Comprehensive car insurance also has a range of optional extras, including complimentary replacement vehicles while you can’t drive your own car, and no-excess windscreen replacement if you have a crash.

Compulsory Third Party (CTP): A compulsory insurance policy that covers you if you injure or kill someone in a motor vehicle accident. The specific conditions on this type of insurance are different from state to state, but it is compulsory to hold CTP in order to register your vehicle.

Excess: The excess is an amount that you pay towards the cost of your claim. Different excesses might apply to different types of claim, so you should check your policy for details. You may be able to pay a lower premium if you have a higher excess, but you need to be sure that you could afford to pay the excess unexpectedly in an emergency.

Exclusions: Anything that is not covered by your policy. Exclusions may vary between insurance providers, but find out the common exclusions here.

Forced entry: Illegal entry into your car which includes illegally using keys or picking locks. It does not include entering your car through an unlocked door, window, or skylight.

Inclusions: Anything that is covered by your policy. When a particular event is listed as being included in your policy, the insurer will cover the whole expense or a listed percentage of the cost involved.

Market value: What your car would be worth on the market, or it would cost to replace your vehicle with one of the same make, model, age, and condition as your vehicle was in before the loss or damage. This is one option for your sum insured; the other option is to insure your car for an agreed amount (see ‘Agreed value’ above).

No claim bonus: A discount on your premium for drivers who have not made any claims so far on their insurance. Some insurance providers have a ‘protected no claim bonus option’, where they will let you keep your no claim bonus after you make your first claim in any one period of insurance, under certain conditions.

Nominated driver: When you sign up for insurance, you must advise the insurer who will be listed on your policy as being allowed to drive your car (usually yourself and someone else). These people are the nominated drivers. Other people who drive your car but are not nominated drivers would be required to pay an additional excess if they were in an accident while driving your car.

Premium: The premium is the amount you pay for the cover your insurance policy provides, and may be paid once annually or more frequently (e.g. monthly, fortnightly). Your premium must be paid on time for your car to remain covered.

Third Party Property: This is an insurance policy that covers the cost to repair damage caused by your car to other people’s property. It will also cover your legal costs if they sue you over that damage.

Third Party, Fire and Theft: This is an insurance policy that covers damage to the property of others, and some limited cover for your own car if it is damaged or lost because of fire or theft.

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