Car insurance in New Zealand isn’t legally compulsory, but most drivers still buy it to protect themselves from unexpected costs. One accident, even a small one, could cost thousands of dollars in repairs. That’s why having the right policy matters.
In this guide, we’ll explore the best car insurance providers in New Zealand (2025), their features, and tips to help you make the right choice.
Why Car Insurance Matters in New Zealand
Even though it’s not mandatory, driving without car insurance is risky:
- Repair costs can be extremely high.
- If you damage another car, you’re legally liable.
- Comprehensive policies also cover theft, fire, and natural disasters.
Types of Car Insurance in New Zealand
- Comprehensive Insurance – Covers your car and others’ vehicles.
- Third-Party, Fire & Theft – Protects against fire/theft plus third-party damage.
- Third-Party Only – Only covers damage you cause to others’ vehicles or property.
Top Car Insurance Providers in New Zealand (2025)
1. AA Insurance
- Why it’s trusted: Award-winning customer service.
- Highlights:
- Comprehensive cover with roadside assistance.
- Discounts for multiple vehicles.
- Flexible payment terms.
- Best for: Families and drivers wanting reliable support.
2. Tower Insurance
- Why people choose it: Digital-first, quick claims.
- Highlights:
- Usage-based discounts (low mileage drivers save).
- Online claim management 24/7.
- Options for rental car cover.
- Best for: Drivers who prefer online convenience.
3. AMI Insurance
- Why it stands out: Longstanding provider with strong community presence.
- Highlights:
- Comprehensive and third-party policies.
- Good multi-policy discounts (home + car).
- Large network of service centres.
- Best for: Drivers who prefer face-to-face service.
4. State Insurance
- Why it’s solid: Part of IAG, one of Australasia’s biggest insurers.
- Highlights:
- Online quotes and claims.
- Competitive pricing.
- Great for safe drivers.
- Best for: Budget-conscious drivers.
5. Trade Me Insurance (Powered by Tower)
- Why it’s popular: Affordable and easy to buy online.
- Highlights:
- Competitive pricing for new drivers.
- Backed by Tower Insurance.
- Extras for added protection.
- Best for: Young and first-time car owners.
6. Youi NZ
- Why it’s unique: Personalized pricing based on your lifestyle.
- Highlights:
- Tailored premiums (pay for what you use).
- Highly rated customer service.
- Quick claims process.
- Best for: Drivers who want custom coverage.
Cost of Car Insurance in New Zealand (2025)
- Comprehensive: $800 – $1,200 NZD per year.
- Third-Party, Fire & Theft: $400 – $700 NZD per year.
- Third-Party Only: $250 – $500 NZD per year.
💡 Tip: Young drivers (under 25) usually pay higher premiums.
Tips for Choosing the Best Provider
- Compare quotes online – Use comparison sites.
- Check add-ons – Like roadside assistance or windscreen cover.
- Look at claims satisfaction – Fast claims are worth paying for.
- Bundle policies – Save money by combining home + car insurance.
- Safe driver discounts – Many providers reward clean driving records.
Final Thoughts
Car insurance in New Zealand gives drivers peace of mind.
- AA Insurance and AMI are perfect for families.
- Tower and Trade Me Insurance work well for younger or online-focused drivers.
- Youi is best if you want a personalized plan.
By comparing carefully, you’ll find the coverage that fits your budget and lifestyle.