Key takeaways
- State is our best car insurance in New Zealand overall for 2026. It won Canstar's car Insurer of the Year for a third straight year, earned 5 stars for value across all six driver profiles, and also took Canstar's claims and roadside satisfaction awards.
- MAS has the happiest customers. It topped Consumer NZ's car insurance satisfaction ratings for the tenth year running and won Canstar's 2026 Most Satisfied Customers award for car insurance.
- No insurer is cheapest for everyone. For the same car and driver, quotes in 2026 differ by an average of $651 — so comparing at least five quotes matters more than brand loyalty.
- Bundling no longer guarantees a discount. AA, AMI, State and Tower have all dropped multi-policy discounts, so price each policy on its own merits.
Car insurance isn't compulsory in New Zealand, but most drivers carry it — and with premiums up sharply since 2023, choosing well has real money attached. Below, we rank the six insurers that performed best across independent 2026 research, explain exactly why, and show you how to find the right policy for your car, age and location.
Our top picks for 2026
Side-by-side comparison
The table summarises how each insurer performed in the 2026 research we relied on. "Value rating" is the range of star ratings each insurer received in Canstar's 2026 car insurance awards across six driver profiles (where it was a winner).
| Insurer | Best for | Our score | Canstar value rating 2026 | Satisfaction signal | Financial strength | Standout cover |
|---|---|---|---|---|---|---|
| State | Most drivers | 4.8 / 5 | 5★ in all six profiles | Canstar claims & roadside award winner | AA (S&P), via IAG NZ | Excess-free careless-driving defence costs to $10,000 |
| MAS | Professionals | 4.6 / 5 | Not a 2026 value winner | Consumer People's Choice 10 years; Canstar car satisfaction winner | A (S&P) | Roadside assistance, no-excess glass and keys (to $1,000) |
| AA Insurance | Repair peace of mind | 4.4 / 5 | 4★–5★ | 2nd in Canstar claims satisfaction | AA- (S&P) | Lifetime repair guarantee, even after you sell |
| AMI | Built-in extras | 4.2 / 5 | 4★–5★ | Mid-table satisfaction | AA (S&P), via IAG NZ | Standard excess-free glass + unlimited roadside callouts |
| FMG | Rural & 50+ | 4.2 / 5 | Not a 2026 value winner | Canstar seniors car & home satisfaction winner | A (AM Best) | Excess-free when not at fault; misfuelling cover |
| Tower | Under-25s on a budget | 3.8 / 5 | 3★–5★ | Near the bottom for satisfaction | A- (AM Best) | New-for-old replacement within two years of purchase |
Ratings and features checked against insurer and Canstar publications in October 2026. Policy wordings change — always confirm details with the insurer before you buy.
The 2026 awards scoreboard
Two independent bodies shape most "best car insurance in NZ" conversations. Canstar rates policies on price and features using standardised quotes, and separately surveys customers. Consumer NZ runs an annual satisfaction survey and gives its People's Choice badge to providers that rate well above average. Here's who won what this year.
Third consecutive win, combining top value scores with leading customer satisfaction.
Awarded for the strongest mix of premiums and features across six driver profiles.
Ranked first of 13 brands after a survey of 3,127 policyholders.
Maximum scores in all six claims categories among 809 recent claimants.
Top-rated insurer-provided roadside assistance, ahead of AMI and Tower.
Chosen by 2,711 surveyed Kiwis aged 50+, noted for market-leading service.
Tenth consecutive year, with the highest car insurance satisfaction score in Consumer's latest survey.
ANZ, ASB, BNZ and Westpac all rated below average for car insurance satisfaction in Consumer's survey published in 2025.
In-depth reviews of the best car insurers in New Zealand
Each review covers what the independent data says, the policy features that actually matter at claim time, and the trade-offs. Scores use the weighted method explained in How we ranked insurers.
State Insurance
Best car insurance overallState is the most complete all-rounder in the 2026 market. Canstar named it car Insurer of the Year for the third year in a row and gave it a clean sweep of 5-star value ratings across all six driver profiles it tests — under-25 male and female, 25–29, 30–49, 50+, and families with a young driver. No other insurer matched that.
Price is part of the story. At a like-for-like $400 excess, Canstar found State's premiums sat around 8–9% below the market average for drivers aged 25–49 and roughly 18–25% below average for under-25s, families and over-50s. State also cut its standard excess from $500 to $300 and scrapped its additional age excess for young drivers, so under-25s now pay the same excess as everyone else when they claim.
Service backs up the price. State won Canstar's 2026 awards for both car insurance claims and insurer-provided roadside assistance, with customers giving it maximum scores across every category assessed. It's a division of IAG New Zealand, which holds an AA ("very strong") financial strength rating from S&P.
Pros
- Only insurer rated 5★ for value in every Canstar profile
- Award-winning claims and roadside service
- Lower $300 standard excess
- Strong pricing for young drivers and families
Cons
- Ranked fourth, not first, in Canstar's wider car satisfaction survey
- No multi-policy discount any more
- Consumer NZ found big insurers generally trail smaller ones for satisfaction
MAS (Medical Assurance Society)
Best for customer satisfactionIf you judge an insurer by how its own customers feel, MAS is in a league of its own. In February 2026 it was named Consumer People's Choice for car insurance for the tenth consecutive year, recording an 84% satisfaction score for car cover — the highest in Consumer NZ's survey of 4,795 New Zealanders — with 96% of its car insurance respondents satisfied overall.
Canstar's numbers agree. MAS won the 2026 Most Satisfied Customers award for car insurance, ranking first among 13 brands. Its customers gave it the maximum possible score in every category except cost — and even on cost, it still out-rated the competition.
MAS is a member-owned mutual that serves a community of more than 50,000 professionals, so check eligibility before you get attached. Its general insurer, Medical Insurance Society, holds an "A" (strong) rating from S&P and reported a 200% solvency ratio at 30 June 2026.
Pros
- Best customer satisfaction results in the country, two surveys running
- Generous standard benefits on comprehensive cover
- Member-owned, NZ-owned mutual
- Freedom to pick a repairer
Cons
- Aimed at professionals — not everyone can join
- Not among Canstar's 2026 value award winners
- Hire car cover is an optional extra
AA Insurance
Best for repair guarantees & claimsAA Insurance collected a Canstar Outstanding Value award for the third consecutive year in 2026. Canstar found its premiums stable year on year and below the market average across every profile tested — about 6% lower for drivers aged 25–49 and up to 18% lower for over-50s — with its sharpest relative pricing on younger drivers. Its value ratings ranged from 4 to 5 stars.
Its signature feature is a lifetime repair guarantee: work done by an AA-approved repairer is guaranteed for the life of the car, even after you sell it. AA also has a strong claims record — it won Canstar's car claims satisfaction award in 2024 and 2025, and finished second behind State in 2026.
AA Insurance is a joint venture between Vero (Suncorp) and the New Zealand Automobile Association, and carries an AA- ("very strong") S&P rating according to Quashed's insurer comparison.
Pros
- Three straight years of Canstar value awards
- Repair guarantee that transfers with the car
- Consistently strong claims satisfaction
- Below-average premiums across all Canstar profiles
Cons
- Excess-free windscreen and rental car cost extra
- Multi-policy discount has been dropped
- Can be pricey for some profiles — one August 2026 sample quote put it over $900 above the cheapest
AMI
Best for built-in extrasAMI won back-to-back Canstar Outstanding Value awards by pairing competitive premiums with features many rivals charge extra for. Canstar found AMI's prices below the market average for every profile — around 6% for 25–49 year olds, 14–17% for under-25s and families, and more than 20% for drivers over 50.
What sets AMI apart is what's included. Its comprehensive policy covers accidental damage to windscreens, side and rear windows and sunroofs as standard with no excess, and it bundles in AMI Roadside Rescue with unlimited 24/7 nationwide callouts at no extra cost. For many drivers, that removes the need for a separate roadside membership.
Like State, AMI is a division of IAG New Zealand, so it shares the same AA rating from S&P. It also runs MotorHub assessment centres in Auckland and Christchurch.
Pros
- Glass and roadside included without add-on fees
- Strongest pricing for over-50s and under-25 women (5★)
- Backed by IAG's AA financial strength rating
Cons
- Only seventh of 13 in Canstar's 2026 satisfaction ranking
- Third of five in Canstar's claims satisfaction research
- Was the highest quote in one August 2026 sample comparison
FMG
Best for rural, provincial & 50+ driversFMG is a mutual insurer with roots in New Zealand's farming communities, and its customers consistently rate it among the best in the country. In 2026 it won Canstar's Most Satisfied Customers award for seniors' car and home insurance, based on 2,711 Kiwis aged 50 and over, with Canstar's panel highlighting its market-leading customer service. It also placed third of 13 in Canstar's overall car satisfaction ranking.
That's not a one-off. FMG won Canstar's car satisfaction award three years running up to 2024, and scored 79% for car insurance satisfaction in Consumer NZ's survey published in February 2025 — second only to MAS.
Its comprehensive Superior Private Vehicles policy includes excess-free cover when you're not at fault, excess-free glass, lock and key replacement, and cover for accidentally filling up with the wrong fuel. FMG Insurance Limited holds an "A" (Excellent) rating from AM Best.
Pros
- Outstanding service and satisfaction track record
- Mutual ownership aligns clients and owners
- Understands rural vehicles, utes and gravel-road risks
Cons
- Not among Canstar's 2026 value award winners
- Rural and provincial focus — city drivers may find sharper prices elsewhere
- Hire car cover costs extra
Tower
Best budget pick for under-25sTower earned a 2026 Canstar Outstanding Value award largely on the back of significant price cuts for young drivers: its under-25 premiums fell around 14% year on year, leaving its under-25 and 50+ pricing 20–24% below the market average. It scored 5 stars in both under-25 profiles.
Its comprehensive policy is feature-rich, too. Tower offers new-for-old replacement if your car is written off within two years of purchase, no excess for theft from a locked garage, a repair guarantee for as long as you own the vehicle, and up to $1,000 excess-free on a first claim for lost, stolen or duplicated keys.
Tower is NZX-listed and underwrites Trade Me Insurance; it also began providing general insurance to Westpac's retail customers from July 2026. AM Best affirmed its A- (Excellent) rating in April 2026.
Pros
- Among the cheapest options for under-25s in Canstar's research
- Strong pricing for over-50s
- Generous key and new-for-old benefits
Cons
- Ranked 12th of 13 in Canstar's 2026 car satisfaction survey
- Family-with-young-driver premiums rose about 7% (3★)
- Removed its multi-policy discount in January 2026
Other insurers worth a quote
New Zealand has more than 18 places to buy car insurance, and several smaller brands are underwritten by the same large insurers. These didn't make our top six on the available data, but they can win on price for particular drivers.
Trade Me Insurance
Online-only and underwritten by Tower. It ranked a surprising second of 13 brands in Canstar's 2026 car satisfaction survey — well ahead of its underwriter.
Cove
A digital-first car and pet insurer backed by Japan's Aioi Nissay Dowa (MS&AD group). Consumer NZ notes it doesn't use a standard excess. Sixth for satisfaction in Canstar's 2026 survey.
Assurant
A specialist motor insurer, formerly Protecta, with more than 30 years in New Zealand. Worth checking if you pay monthly — Quashed reports it doesn't charge extra for instalments.
Provident
A 100% New Zealand-owned motor specialist, often sold through car dealers. It came in close to the cheapest in an August 2026 sample comparison by Quashed.
How much does car insurance cost in New Zealand in 2026?
According to the Quashed Insurance Index, built from tens of thousands of live quotes, comprehensive car insurance averaged $1,311 a year (about $109 a month) in the April–June 2026 quarter. That's up 6.1% on a year earlier and 18.8% over three years — though still just below the Q2 2024 peak.
Average comprehensive premium (Q2 each year)
Average premium by region, Q2 2026
Source: Quashed Insurance Index, Market Scan quoted premiums. Regional figures are averages across all cars and drivers quoted, not the same car priced in different places.
What pushes your premium up or down
- Your age and experience. Drivers aged 18–24 were quoted an average of $1,714 a year in late 2025, compared with $1,346 for 25–30 year olds.
- Your car. Expensive, powerful or frequently stolen models cost more to insure, while cars with cheap, plentiful parts tend to be cheaper.
- Where you park and how far you drive. Street parking in a higher-risk suburb and long annual distances both raise the price.
- Your excess and payment method. A higher excess lowers your premium; paying monthly often adds a loading.
- The insurer itself. Each insurer prices risk differently — which is why the same driver can see quotes hundreds of dollars apart.
Types of car insurance in New Zealand
New Zealand insurers sell three main levels of cover. Comprehensive is by far the most popular — Canstar's research found 87% of insured drivers choose it.
| What's covered | Comprehensive | Third party, fire & theft | Third party only |
|---|---|---|---|
| Damage you cause to other people's cars and property | ✓ | ✓ | ✓ |
| Your car stolen | ✓ | ✓ | ✕ |
| Your car damaged by fire | ✓ | ✓ | ✕ |
| Accidental damage to your own car | ✓ | ✕ | ✕ |
| Extras such as glass, towing and rental car | ✓ | ✕ | ✕ |
Some third-party policies include limited extras, such as MAS's cover of up to $3,000 if an uninsured driver is fully at fault. Check each wording.
Agreed value vs market value
This decides what you're paid if your car is written off, and it's locked in when you buy. Agreed value fixes the payout up front (usually for a slightly higher premium). Market value pays what the car was worth just before the loss, which can be less than you expect. If your car is relatively new or hard to replace, agreed value gives more certainty.
What changed in 2026 — and what's coming next
Multi-policy discounts disappear
Tower removed its multi-policy discount, and AA, AMI and State have also dropped theirs. Bundling car, house and contents with one insurer is no longer a dependable way to save.
State lowers its excess and drops age excess
State cut its standard excess from $500 to $300 and removed the extra excess for young drivers, according to Canstar's 2026 research.
New $25 Fire and Emergency levy
A flat levy of $25 per insured vehicle now applies to policies starting or renewing from this date — up from $9.53, and newly charged on third-party-only cover, which previously paid nothing.
Tower takes over Westpac's general insurance
Tower began providing general insurance products to Westpac's retail customers under a new partnership.
Contracts of Insurance Act 2024 takes full effect
The biggest overhaul of insurance law in a century. For consumer policies, your old duty to disclose everything material is replaced with a duty to take reasonable care not to misrepresent. Insurers must explain that duty clearly, remedies for mistakes become proportionate, and unfair contract terms rules will extend to consumer insurance. Details are on MBIE's insurance contract law page.
Which car insurer fits you?
The "best" insurer depends on who's driving and what you value. Use this as a starting shortlist, then get at least three quotes.
Both scored 5★ for under-25s in Canstar's 2026 research, and State has scrapped its young driver excess.
State was 5★ for families; AA and AMI scored 4★. Tower dropped to 3★ here.
AMI priced more than 20% below average for 50+; FMG won Canstar's seniors satisfaction award.
A mutual built around rural communities, with top-tier service ratings.
If you qualify, it's the satisfaction leader with rich standard benefits.
Excess-free glass and unlimited roadside callouts come as standard.
Five things to check before you buy
- The excess structureLook beyond the standard excess for extra excesses on young drivers, theft or glass claims — they can stack.
- Agreed or market valueKnow exactly what you'd be paid if the car were written off.
- Rental car and roadsideAre they included, optional or missing? A week without a car can cost more than the add-on.
- Repair choice and guaranteesCan you choose your repairer, and how long are repairs guaranteed?
- Financial strength and the Fair Insurance CodeCheck the insurer's rating and whether it's an Insurance Council of New Zealand member bound by the Fair Insurance Code.
How to pay less for car insurance in NZ
- Compare at every renewalDon't let your policy roll over automatically. Get fresh quotes from at least five insurers using the same details.
- Consider a higher excessIn one Quashed example, moving from a $500 to a $1,500 excess cut the cheapest quote by about 20%. Only do it if you could pay that excess tomorrow.
- Pay annually if you canMonthly instalments commonly carry a 10–20% loading, though some insurers don't charge extra.
- Insure for a realistic valueOver-insuring an older car inflates the premium without increasing what you'd realistically get back on a market-value policy.
- List drivers honestlyAdding an experienced driver can help, but naming someone else as main driver when you drive most ("fronting") can void a claim.
- Declare security and parkingA garage, alarm or immobiliser is worth mentioning. Consumer NZ says switching providers could save up to $670 a year in its survey.
- Don't assume bundling savesWith major insurers dropping multi-policy discounts, the best car insurer for you may not be your home insurer.
What to do if your claim is declined
Start with your insurer's internal complaints process and ask for the decision in writing, with the policy wording it relies on. If you're still unhappy, every insurer must belong to an approved dispute resolution scheme. For most, that's the Insurance & Financial Services Ombudsman (IFSO) Scheme, which is independent and free for consumers, with compensation limits now set at $500,000.
You won't be alone: the IFSO Scheme accepted a record 600 disputes for investigation in 2024–25, and motor vehicle insurance made up 19% of them — second only to house insurance.
How we ranked the best car insurance in New Zealand
We scored each insurer out of 5 using five weighted factors, drawing only on published, verifiable sources from 2024–2026. We did not obtain our own quotes; pricing insights come from Canstar's standardised research and Quashed's live-quote data.
Where an insurer wasn't included in a piece of research (for example, MAS and FMG weren't among Canstar's 2026 value award winners or claims award shortlist), we used a neutral-to-moderate score rather than guessing. Rankings reflect our editorial judgement of the evidence and are not personal financial advice.
Frequently asked questions
What is the best car insurance in New Zealand in 2026?
Based on 2026 independent research, State is the best all-round choice: it was Canstar's car Insurer of the Year for the third year running and won the claims and roadside satisfaction awards. MAS leads for customer satisfaction if you're eligible, while AA Insurance, AMI, FMG and Tower each stand out for specific drivers.
Is car insurance compulsory in New Zealand?
No. Unlike Australia and the UK, New Zealand doesn't legally require car insurance. But you're personally liable for damage you cause to other people's vehicles and property, so most drivers carry at least third-party cover. Injuries are covered separately by ACC.
Who has the cheapest car insurance in NZ?
There isn't one cheapest insurer. For the same car and driver, the gap between the highest and lowest quote averaged $651 in 2026. In Canstar's research, State, Tower and AMI priced well below average for young drivers and over-50s — but your own quotes are the only reliable answer.
How much is car insurance in New Zealand per month?
Comprehensive cover averaged about $109 a month ($1,311 a year) in Q2 2026. Auckland drivers paid the most, averaging $1,496 a year, while Wellington averaged $1,128.
Is comprehensive car insurance worth it?
For most cars, yes — it's the only level that covers damage to your own vehicle in an at-fault crash. Third-party-only cover is common on cars worth under about $5,000, where comprehensive premiums are hard to justify against the car's value.
Does a not-at-fault claim increase my premium?
Usually not on its own. Many insurers waive or refund your excess when another identified driver is fully at fault — MAS and FMG both include this — but check your policy wording.
Why is there a $25 Fire and Emergency levy on my car insurance?
Fire and Emergency New Zealand is funded mainly through levies on insurance. From 1 July 2026, every insured vehicle pays a flat $25 a year, including third-party-only policies. It applies from your first renewal on or after that date.
Should I bundle car insurance with my home and contents?
Not automatically. AA, AMI, State and Tower have all dropped multi-policy discounts, so the insurer with the best car policy for you may not be the best for your house. Compare each policy separately.
Sources
- Canstar NZ — Car Insurance Star Ratings and Awards 2026
- Consumer NZ — Best and worst insurance companies in New Zealand (updated February 2026)
- Consumer NZ — Media release on insurance satisfaction survey (February 2025)
- MAS — Consumer People's Choice for the tenth year running (February 2026)
- MAS — Motor vehicle insurance benefits
- MAS — Financial strength ratings and solvency
- State — Financial strength rating (IAG New Zealand)
- AMI — Financial position
- Tower — Financial strength rating
- AM Best — Affirms credit ratings of Tower Limited (April 2026)
- FMG — Disclosure Statement 2025
- Quashed — Insurance Index, Q2 2026
- Quashed — Car insurance NZ: costs, providers and savings data
- Department of Internal Affairs — Insurance-based levy to fund Fire and Emergency New Zealand
- MBIE — Insurance contract law review
- NZ Legislation — Contracts of Insurance (Repeals and Amendments) Act 2024
- Insurance & Financial Services Ombudsman Scheme
- Canstar — Car insurance awards 2024 media release (via Scoop)
This article provides general information only and does not take into account your personal objectives, financial situation or needs. It is not financial advice. Policy features, prices and ratings can change; always read the policy wording and confirm details with the insurer before buying. Last fact-checked 16 October 2026.