New Zealand’s Best Car Insurance

Canstar looks at the best car insurance deals in New Zealand, and how to choose the right insurance cover.

Car insurance isn’t a legal requirement, but it’s still a must-have. Basic plans can cost as little as a few dollars a week, but can save you thousands if an accident occurs. But with so many plans and providers, finding the right car insurance can be a challenge. That’s why, each year, Canstar awards the best car insurance providers and products our 5-Star Awards for Outstanding Value.

In this article, we break down which providers earn our 5-Star Awards for Outstanding Value, across different driver demographics, so you can find outstanding insurance cover for you, your car and your family.


In this article we cover:

Which car insurance policy is right for you?
Things to consider and how to get the best deals
Young drivers’ car insurance
Insurance for over 25s
Insurance for over 50s


 Which car insurance policy is right for you?

When it comes to car insurance, it’s not a one size fits all. And you’ll need to consider what will best suit your needs. Firstly, you need to decide on what type of policy you want: Third Party, Third Part Fire & Theft, or Comprehensive.

Third party car insurance

Third-party car insurance is your most basic cover. It’s not designed to provide insurance for your vehicle, but rather other people’s. So if you cause an accident, it will insure you for the cost of replacing or repairing the other person’s vehicle or property. It will not, however, cover the cost to repair your own vehicle.

Third-party is by far the cheapest plan. As such, it may be suitable if you have a limited budget, or if your car isn’t worth much and you could replace it without much financial strain.

Third Party Fire & Theft

As the name suggests, this policy includes third-party cover, plus cover for fire and theft. This gives some extra security against the total loss of your car. But again, in the case of an accident, your own vehicle will not be covered.

If you are on a limited budget or your car is not worth much, but you leave your car in a high-theft area, or have no secure, off-street parking at your house or work, this could be a better option than standard third-party insurance.

Comprehensive

If you can afford comprehensive coverage, you should go for it. With this policy, you are protected against fire and theft, along with cover for your own vehicle and anyone else’s. This means if you cause an accident, your car, and anyone else’s car will be repaired or replaced.

If you are going to look at comprehensive car insurance, it pays to see what add-ons and benefits are available, as comprehensive policies vary greatly.

Things to consider and how to get the best deals

Once you’ve decided on the type of car insurance needed, there are a few more things to consider:

  • Does the plan allow for flexible excess? Increasing excess can lower your premiums
  • Do you have to pay for the added benefits? Many policies offer benefits, like roadside assistance and excess-free glass repair. Some policies include it in the price, others make you pay for it as an add-on
  • Can you exclude young drivers? Doing so can lower your premiums
  • Is your car modified? Not all insurers will cover you if you have a modified vehicle. And of those that will, the premiums can vary greatly. When shopping for car insurance you need to be upfront about any modifications you have made
  • What other insurance policies do they offer? If the provider does more than just car insurance, you may be able to bundle home and contents or other policies, for a discount

If you’re interested in saving money on your car insurance, you can check out our other story Cheap Car Insurance: Tips to Save You Money for a comprehensive guide on ways to lower your car insurance costs.

best car insurance: woman smiling in car

The best car insurance in New Zealand

Below we have outlined the 5-Star winners of our Outstanding Value award for 2021, by demographic. The tables shown are an abridged version of our research result, and do not list the full range of providers rated.

You can see here for our ratings methodology. Or, to see the full results of our 2021 Car Insurance Ratings and Awards, click here.

Outstanding value award logo

The best car insurance: Young drivers

5-Star Car Insurance Winners: NZ Under 25-year-old Male

Star Rating

Company

Product

Further Information

Everyday Plus
FMG Comprehensive
Tower Car Insurance Comprehensive
Comprehensive

5-Star Car Insurance Winners: NZ Under 25-year-old Female

Star Rating

Company

Product

Further Information

Everyday Plus
Tower Car Insurance Comprehensive
Comprehensive

5-Star Car Insurance Winners: NZ Family with Young Driver

Star Rating

Company

Product

Further Information

Everyday Plus
FMG Comprehensive

→Related article: Car Insurance for Learner Drivers

The best car insurance: over 25s

NZ 25- to 29-year-old Driver

Star Rating

Company

Product

Further Information

Everyday Plus
Comprehensive
Tower Car Insurance Comprehensive
Comprehensive

 

NZ 30- to 49-year-old Driver

Star Rating

Company

Product

Further Information

Everyday Plus
Tower Car Insurance Comprehensive
Comprehensive

Compare Car Insurance

The best car insurance: over 50s

NZ +50-year-old Driver

Star Rating

Company

Product

Further Information

Everyday Plus
Comprehensive
Car Comprehensive
Tower Car Insurance Comprehensive
Comprehensive

Compare car insurance


author andrew broadley

About the author of this page

This report was written by Canstar Content Producer, Andrew Broadley. Andrew is an experienced writer with a wide range of industry experience. Starting out, he cut his teeth working as a writer for print and online magazines, and he has worked in both journalism and editorial roles. His content has covered lifestyle and culture, marketing and, more recently, finance for Canstar.


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