Best Car Insurance In New Zealand

Best Car Insurance In New Zealand

Best Car Insurance in New Zealand - Find the Perfect Coverage

Kevin Andrew Ordoñez
PUBLISHED ONDecember 29, 2023

Renting a car in New Zealand is probably the best way to explore and experience the beautiful country. But aside from basic requirements like an international driving permit for New Zealand, you also need to have the right type of insurance to protect you on your journey. With so many types of cover available, choosing the right one is important.

Keep reading to learn more about the different types of coverages and how to choose the best one.

Types of Car Insurance in New Zealand

In New Zealand, there are two types of car insurance plans: comprehensive and third-party insurance. Let’s examine what these plans cover and what they don’t.

Comprehensive Car Insurance

Comprehensive Car Insurance is the most wide-ranging policy you can get. It is also known as a comprehensive policy or comprehensive car insurance policy. This type of insurance doesn’t just cover damage to other people’s property; it also covers damage to your own car. The comprehensive price might be a bit higher than other types of insurance, but it gives you the most peace of mind.

With comprehensive cover or comprehensive car insurance, you’re protected against accidental damage. This means if something unexpected happens while you’re driving, like hitting a tree or getting into a crash, the cost to fix your car is covered. But comprehensive insurance is not just about accidents on the road. It also covers damage to your car from animals, falling trees, natural disasters, theft, and vandalism.

You can even add optional extras to your policy. For instance, most cheap car insurance companies in New Zealand offer cover for rental cars. If your car needs to be fixed, you can get a rental car, and the insurance company will pay for it.

Remember, every policy is different. So, always check what each insurance company offers and ensure the one you pick gives you the best value for your money.

Third-Party Car Insurance

Next, let’s talk about Third-Party Car Insurance. This type of insurance is often the cheapest option. It is designed to cover the cost of any damage you might cause to another person’s vehicle or property while driving. This is known as third-party cover. For example, third-party damages like scratches or dents to another person’s car would be covered under this plan.

While cheaper car insurance like third-party cover might sound good, remember it’s limited. It does not usually cover damage to your own car. So, if you get into an accident, you might have to pay for repairs to your car out of your own pocket.

Different insurance providers offer different levels of third-party coverage. Some might also offer coverage for damage to your car caused by an uninsured driver. This could be useful if you’re hit by a driver without insurance.

Remember to pay attention to the insurance excess. This is the amount you must pay towards a claim before the insurance pays the rest. The cheaper the insurance, the higher the excess is likely to be. Always ensure you understand what you’re getting before deciding on a policy.

How Much Does Car Insurance Cost in New Zealand?

Aside from the insurance coverage, there are other costs you need to consider. You should always get insurance quotes from at least three different companies. This way, you can compare the costs and find the best deal. Remember, online quotes might be a better option since they are quick and easy to get.

Insurance costs can also include extra costs for things like towing. If your car breaks down, the cost to tow it to a garage can be quite high. Some insurance policies might cover this, so it’s a good idea to check.

Other costs might include an additional cost for roadside assistance or a higher premium for adding a second driver to your policy. So, always consider these extra and additional costs when choosing your car insurance. This way, you won’t get any surprises later on.

In New Zealand, third-party insurance is mandatory if you want to own a vehicle. This type of insurance is the minimum requirement and covers any damage you might cause to other people’s property. However, many other insurance options are available that offer higher levels of coverage.

These include comprehensive car insurance and third-party fire and theft insurance. Each insurance option has its unique features, benefits, and costs. So, it’s essential to consider these factors before locking in an insurance deal. This can ensure that you get the right cover to match your needs and budget.

Remember to look into how to obtain insurance in New Zealand before flying to the country for a smoother, hassle-free trip.

Things to Consider When Choosing Car Insurance in New Zealand

Now, to help you make an informed decision, here are some things you should consider when choosing your car insurance in New Zealand:

Price Value

Since we’ve discussed coverage, let’s discuss insurance prices. It’s smart to look for competitive, price-leading insurance policies. Finding the best coverage at a lower price may require research, but it’s worth it. The cost of the insurance premium is crucial as it directly impacts your budget.

Some insurance companies offer excellent coverage at very reasonable rates. So remember, while you want good coverage, you also want to ensure you get the best price possible.

Claims Process

Another key thing to consider is how the insurance company manages insurance claims. An experienced claims team can make the process stress-free. Ensure that the company doesn’t have a high incorrect claims count. This shows the company is reliable and provides good service when you need it most.

Customer Service

One key factor to consider is the insurance company’s customer service quality. Good customer service can help you understand the financial services offered, guide you through the claims process, and aid you in times of need, such as when you require breakdown service. A company that is prompt in its responses and genuine in its assistance can make a big difference in your overall insurance experience.

Company Reputation

The last thing you want is to find out that your car insurance provider doesn’t deliver on their promises when you need them most. It’s crucial to choose a reputable provider, and here are some top choices in New Zealand:

  • Tower Insurance. Known for its wide range of insurance solutions, Tower Insurance has established a strong reputation for reliability and customer service. They offer comprehensive theft car insurance, ensuring your vehicle is covered against unexpected incidents. Their courtesy car hire service is particularly helpful while your car is being repaired.
  • State Insurance. State Insurance has a long history in New Zealand and is trusted by many Kiwis. It offers various insurance packages, including car insurance, to suit different needs and budgets. Its customer service is noted for its responsiveness and helpfulness.
  • AA Insurance. AA Insurance is renowned for its excellent customer service and comprehensive insurance plans. It provides various car insurance options, including theft car insurance, to cater to different customer needs. As a well-established provider, it’s a reliable choice for many New Zealand drivers.
  • TradeMe Insurance. Trade Me Insurance is known for its straightforward, easy-to-understand policies. It strives to make the insurance process as simple as possible for its customers and offers a range of coverage options, including theft car insurance.
  • Cove Insurance. As a newer player in the field, Cove Insurance offers a fresh, digital approach to insurance. Their processes are simple and quick, offering a range of coverage options. They’re quickly becoming popular due to their competitive pricing and excellent customer service.
  • AMI Insurance. AMI is a reputable insurance provider that offers various coverage options, including theft car insurance. They pride themselves on their helpful and efficient customer service, making them a trusted choice for many New Zealanders.

Additional Benefits

When choosing car insurance, don’t just settle with the cheapest one. Look for additional benefits that bring value to your policy.

Satisfied customers often find these extras helpful:

  • Emergency Accommodation. If an accident occurs far from home, some insurance policies cover the cost of a nearby hotel.
  • Safe Driver Rewards. Insurances often reward safe drivers with discounts or lower premiums.
  • Coverage Based on Type of Vehicle. Some insurance companies adjust coverage based on your car type. For instance, 4×4 vehicles might get specific off-road coverage.

A good insurer helps you understand common insurance terms, making your policy easier to comprehend. For your car rental company, make sure to ask for a driving guide for New Zealand to ensure you have a safe and enjoyable trip.


While rare, surprises can pop up when dealing with insurance. It’s important that the company you choose for your insurance needs is transparent. You don’t want any shocks, especially when it comes to costs. When looking at insurance products, make sure you know what’s covered.

For example, contents insurance should clearly state what items are covered in case of theft or damage. Cheaper insurance often means less coverage, so watch out! Make sure you fully understand what your policy includes. This way, you can drive with peace of mind, knowing you won’t have any unpleasant surprises.

Ease of Purchase and Renewal

If you plan to stay in New Zealand, consider using an insurance comparison tool. It helps you talk to several providers at once, and it’s important to ask about the insurance renewal process.

Insurance customers often find that renewal time is a perfect opportunity to review policy terms and possibly save money. Always compare policies, costs, and benefits to ensure you’re getting your money’s worth.

Additional Services

Lastly, don’t forget about multi-policy discounts. Many insurance companies offer discounts when you buy more than one insurance policy. This could save you money and make managing your policies easier. So, check if these discounts are available.

Additional roadside assistance, rental car coverage, and breakdown service may also be available. These extra services can provide added convenience and protection for you and your vehicle.

Safe and Secure on New Zealand Roads

While trying to find the best car rental in New Zealand, don’t forget to also be proactive in choosing your car insurance provider. Don’t wait for something to happen before realizing you need a reliable and reputable insurer. Consider all the abovementioned factors, research, and choose an insurance company that aligns with your needs and budget.

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