For years, Kiwi drivers have been told they face a choice: get the cheapest car insurance and risk poor cover, or pay a premium for the best protection. With the average cost of comprehensive insurance in New Zealand now at $1,236 a year, this feels like a decision you can't afford to get wrong.
But what if this choice is a myth?
The truth is, you don't have to sacrifice quality for a great price. The "cheapest" policy isn't about getting less; it's about finding the lowest possible price for the best possible cover that fits your needs. The secret isn't compromise—it's comparison.
This guide will show you how to get the best of both worlds. We'll walk you through a simple, proven process to find the "best" car insurance and also the "cheapest" price for you.
Step 1: Define What the "Best" Car Insurance Looks Like for You
Before you can find the cheapest price, you need to know what you're shopping for. The "best" car insurance isn't a one-size-fits-all policy; it's the one that provides the right features and is backed by a provider you can trust.
To build your ideal policy, focus on three key areas: Policy, Provider, and Price.
A. The Best POLICY: Must-Have Features for Real Protection
A great policy is more than just a low price—it's about having the right benefits that protect you from common and costly situations. When reviewing comprehensive policies, look for these key features:
Comprehensive Policy Benefits Snapshot | AA Insurance | Assurant | Cove |
New Vehicle Replacement | If under 1 year old | If under 1 year old | No |
Stolen Keys | Excess free <$1,000 | Up to $500 | Up to $1,000 |
Emergency Towing | Covered | Up to $1,000 | Up to $1,000 |
Trailer Cover | Up to $1,000 | Up to $1,000 | Up to $1,000 |
Rental Car Hire | Option | Covered if car is stolen | Option |
Cover for Young Drivers | Yes | Yes | No for under 21 |
Source: Quashed - Market Scan - Vehicle (to see full Market Scan benefits comparison Sign up for Free)
B. The Best PROVIDER: Why Customer Service and Reputation Matter
The "best" insurers are those with a good track record of excellent customer service and fair, efficient claims processing. Bigger doesn't always mean better.
Customer reviews are one way to find out how the insurance provider is treating customers:
Awards are another way to get a sense of the product quality and service standards, but bear in mind that most of these organisations charge the insurers a hefty fee for advertising these awards:
Canstar Awards: In 2025, Canstar named State as "Car Insurer of the Year" for its blend of competitive pricing and strong features. FMG, AA Insurance, and AMI also received "Outstanding Value" awards, making them strong contenders.
MoneyHub:
Trusted Brands (Reader's Digest):
C. The Right PRICE Structure: Customising Your Excess
The final part of defining your "best" policy is choosing an excess you can comfortably afford. The excess is the amount you pay out-of-pocket in a claim. A higher excess will lower your premium, but it needs to be a realistic amount you could pay without financial stress.
Once you've decided on your ideal features, preferred providers, and affordable excess, you have defined your "best" policy. Now, it's time to find the "cheapest" price for it.
How Quashed simplifies car insurance for Kiwi drivers
Finding the right car insurance can be a real headache—with rising premiums, confusing policies, and too much fine print. That’s where Quashed steps in, making it easy to compare, track, and manage your policies in one place. Here’s how:
Compare multiple insurers in one place: You can quickly see different policy options side by side.
Keep all your policies in one place: Say goodbye to digging through paperwork; everything’s sorted in one simple dashboard.
Understand your cover easily: With side-by-side comparisons help you see what’s covered and what’s not—no jargon, just the facts.
Adjust your cover to suit your needs: You can explore ways to manage your policy, such as adjusting your excess or bundling policies.
Make the right call for your car
45,000+ Kiwis are using Quashed to compare insurance—will you be next?
See your options side by side and choose the coverage that works for you, all in one place.
Sign up now for free and get started on your car insurance comparison today!
Further reading
Want to explore more about car insurance? Check out these helpful blogs:
Car Insurance Guide: A complete guide to car insurance.
Smart Ways to Slash Your Car Insurance: Tips on cutting costs without losing coverage.
What Car Insurance Covers: Key details on what’s included in your policy.
Comparing Insurance Costs for Top Cars: Insurance costs for popular NZ car models.
Why Is Car Insurance So Expensive?: Understand why premiums are rising.
Choosing the Best Car Insurance: Factors to consider when picking a policy.
Sorting Out Your Car Insurance Renewal: Tips to avoid overpaying at renewal.
Car Insurance Quotes Explained: Get accurate quotes with confidence.
Electric Vehicles and Insurance: Do EVs cost more to insure?
Debunking Car Insurance Myths: Common myths that could cost you.
FAQs
Why are car insurance premiums going up so much in New Zealand?
Car insurance costs are climbing, and it’s got Kiwis scratching their heads. Rising repair bills, inflation, and global reinsurance hikes are pushing prices up—whether you’ve claimed or not. But here’s the thing: you don’t have to take it lying down. Quashed lets you compare policies side by side, so you can check out what’s available and make a call that works for you.
What should I watch out for with cheap car insurance?
A bargain policy might seem like a win—until you need to claim. Some budget policies come with sky-high excesses, sneaky exclusions, and limits that could leave you stranded. With Quashed, you can compare the fine print and weigh up different options based on price and cover.
How can I lower my car insurance premium without sacrificing coverage?
Cutting costs without cutting corners is possible. Increasing your excess, bundling policies, and keeping a clean driving record all help. Quashed makes it easy to compare policies and explore ways to manage your premium.
Does age affect my car insurance rates?
Yes, drivers under 25 often face higher premiums because of increased risk. But safe driving and completing a defensive driving course can help lower premiums over time.
What factors influence my car insurance premium?
Several factors influence your premium, such as your age, driving history, vehicle type, location, and the level of coverage you choose. Premiums vary based on insurer pricing models and individual risk factors.
Should I shop around for car insurance when my renewal is due?
Yes, absolutely! Insurance companies sometimes increase premiums during renewals, even if your circumstances haven’t changed. Comparing policies from different providers allows you to see if there’s a better option that suits your needs. For more on how to handle renewals, check out our blog.
Does my driving history really make a big difference?
It sure does. A clean record means lower premiums, while accidents can bump up your costs. By using Quashed, you can compare policies from insurers that may offer better deals for safe drivers.
What should I consider when insuring an electric vehicle?
EVs have unique insurance needs, from battery coverage to charging equipment protection. Quashed lets you compare policies that may include coverage for EV-specific needs, such as battery protection.
How does Quashed compare to other comparison tools?
When comparing car insurance options, Quashed lets you evaluate a range of insurance options side by side, helping you make an informed choice. To learn more about what sets Quashed apart, check out our blog.
This article provides general information only and does not constitute insurance or financial advice. Insurance policies vary between providers, and you should check with your insurer or a licensed adviser for guidance specific to your situation. For full details, refer to Quashed’s terms and conditions.
