Car insurance NZ

How much does car insurance cost in NZ?

Comprehensive car insurance averages $1,311 a year (about $109 a month) in Q2 2026².

What car insurance has cost over time

Car insurance cost by region

Auckland drivers pay the most of the main centres, at $1,496 a year².

The same car, very different quotes

Across every comparison we run, the gap between the highest and lowest quote for the same car and driver averages $651 — about 64% of the cheapest premium³.

There is no single cheapest car insurer in New Zealand. The insurer that wins for one driver routinely loses for the next, which is why comparing your own profile is the only way to know.

See the full Quashed Insurance Index

How to save on car insurance in NZ

1. Shop around every year

   Don’t just let your policy auto-renew. 79% of Kiwis who compared were quoted a cheaper policy — an average of $404 a year.¹

2. Lift your excess

   Moving from a $500 to a $1,500 excess cut the cheapest quote by around 20% (about $247 a year) in our worked example.⁴

3. Pay annually, not monthly

   Monthly instalments commonly carry a 10–20% loading. Some insurers (Assurant, for example) charge no extra to pay monthly, so it is worth checking before you switch.

4. Right-size your sum insured

   Insuring a realistic market value rather than an inflated one moved the cheapest quote by 15–21% in our worked example.⁴

5. Protect your no-claims history

   A clean claims record can be worth up to a 30% difference on your premium.

6. Check who is on the policy

   Restricting cover to drivers over 25 typically moves the premium 5–10%. If someone on the policy no longer drives the car, take them off it.

7. Add an experienced second driver

   Adding an older, experienced driver to the policy can bring the premium down. But whoever drives the car most must be listed as the main driver — declaring otherwise is fronting, and it can void a claim outright.

8. Tell them about security

   A garage, alarm or immobiliser is usually worth 5–10% and takes a minute to add.

Worked example: a 2015 Toyota Aqua for a 40-year-old driver, Auckland ranged from $1,251 to $2,169 depending on insurer, sum insured and excess⁴.

More on naming drivers correctly, and why fronting backfires

What you need to get car insurance quotes

1. Your car: the rego, or the make, model and year.
2. You — age, address and licence type.
3. Your history — claims and convictions in the last few years.

It takes 90 seconds. You can also upload your current policy and compare it side by side — the only place in New Zealand you can do that.

These are real quotes, returned live from insurers’ own systems for your details — not indicative estimates or a point-in-time price survey.

Do you need car insurance in NZ?

Car insurance is not legally required in New Zealand — unlike the UK and Australia. But if you cause a crash, you are personally liable for the damage you do to other people’s vehicles and property.

With plenty of EVs and SUVs on the road worth $70,000 or more, a single at-fault crash can turn into a six-figure bill. That liability, rather than damage to your own car, is the reason most Kiwis carry at least third party cover.

Types of car insurance cover

Comprehensive is the most popular choice in New Zealand. Third Party Only is common on cars worth under about $5,000, where the cost of comprehensive cover is hard to justify against the car’s value.

What car insurance doesn’t cover

Comprehensive is the broadest cover sold in New Zealand, but it is not unlimited. The common exclusions are consistent across insurers.

• Wear, tear and mechanical failure

  Insurance covers sudden accidental damage, not a clutch or gearbox that wore out. Mechanical breakdown insurance is a separate product.

• Driving unlicensed, disqualified or over the limit

  A claim can be declined outright. This is also why declaring the real main driver matters.

• Undeclared use or modifications

  Using the car for delivery or ride-share on a private policy, or fitting undeclared modifications, can void cover.

• Driving with an expired WoF or rego

  Some insurers reduce or decline a claim if the vehicle was not road-legal at the time.

• Intentional damage

  Damage you cause to your own car on purpose is never covered, and neither is loss arising from an illegal act. Insurance pays for accidents, not choices.

• Anything under your excess

  A $700 repair on a $1,000 excess is entirely yours. This is why the excess you pick changes the premium so much.

Wordings differ between insurers — the policy document is what decides a claim. Check the exclusions before you buy, not after.

Car insurance providers in New Zealand

Quashed compares live car insurance quotes from 10+ NZ providers. Several of them are backed by the same underwriters — but they still sell different policy benefits, and their pricing for the same driver can differ enormously. Compare the quotes rather than picking a brand.

We don’t publish a “cheapest insurer” ranking, because there isn’t one. As the spread data above shows, the insurer that wins for one driver routinely loses for the next. Don’t be misled by sites naming one or two cheapest car insurers in NZ — the cheapest option for someone else could be the most expensive for you. A different car, suburb, driver age and claims history all move the price.

Read our full review of the top 10 car insurance companies in NZ

How your excess works

Your excess is what you pay towards a claim before the insurer pays anything. Raising it lowers your premium, because you are carrying more of the risk yourself.

In our worked example, moving from a $500 excess to $1,500 cut the cheapest quote by about 20% — roughly $247 a year⁴. That trade only makes sense if you could comfortably find the higher excess on the day you need to claim.

Watch for excesses that stack. A young or inexperienced driver usually triggers an extra excess on top of the standard one, and some policies add a further amount for windscreen or theft claims.

Agreed value vs market value

This decides what you are paid if the car is written off, and it is settled when you buy the policy — not when you claim.

Compare Trade Me asking prices against insurance payouts

Proof the same car gets very different prices

The cheapest insurer was different in each example — there is no consistent winner. The only way to find yours is to compare.⁵

Car insurance for young drivers

Drivers aged 18–24 were quoted an average of $1,714 a year, against $1,346 for 25–30 year olds (Q4 2025) — under-25s typically pay 20–30% more.

Read our guide to car insurance for young drivers in NZ

How to switch car insurers

1. Compare car insurance — run a Market Scan and see your options side by side (90 seconds).
2. Buy — take out the new policy online, usually in about five minutes.
3. Cancel the old one — you can cancel at any time and most insurers refund the unused premium pro-rata.

What to do in a car accident

1. Check if anyone is hurt — call 111 for an ambulance

   Injuries come before everything else. Call 111 if anyone is hurt, and ask for the police too: injury crashes must be reported. Move to a safe spot and put your hazards on if the car is blocking traffic.

2. Photograph everything, then swap details

   Take photos before anything is moved: both vehicles, the damage, the position on the road, and the other driver’s licence. If they will not show it, photograph them and their vehicle including the plate. Then swap name, address, phone, rego and insurer.

3. Call roadside assistance if the car needs towing

   Don’t drive a car that isn’t safe to drive. Many policies include towing after an accident, so check your cover before paying for a tow yourself.

4. Lodge the claim promptly

   Most insurers take claims online or by phone, and prefer to hear from you before repairs are arranged. Theft and malicious damage need a police report and reference number before an insurer will progress the claim.

5. Pay your excess

   Payable when the claim is accepted, even if the crash was not your fault — though it is usually refunded once the at-fault driver’s insurer settles.

6. Assessment and repair

   The insurer inspects the damage and either authorises repair or writes the car off. Whether you are paid agreed or market value is decided by the policy you bought, not at claim time.

More articles on car insurance

• The full NZ car insurance guide
• Comprehensive vs third party cover
• How to find the cheapest and best car insurance
• How to save money on car insurance
• Car insurance for young drivers NZ
• Teen drivers and fronting
• Older drivers, licences and insurance
• Market value vs agreed value
• Open vs named driver policies
• Expired rego or WoF and your cover
• Car insurance in Auckland
• Car insurance in Wellington
• Car insurance in Christchurch

Insurer reviews

• Top 10 car insurance companies NZ
• AA Insurance
• AMI
• State
• Tower
• Cove
• MAS
• Provident
• Assurant
• Autosure
• AMP

Tools and data

• Car insurance calculator
• Quashed Insurance Index
• Average cost of car, house and contents insurance

Car insurance FAQs

Is car insurance compulsory in New Zealand?

No. Unlike the UK and Australia, New Zealand does not legally require car insurance. But you are still personally liable for damage you cause to other people’s property, and with many EVs and SUVs now worth $70,000 or more, a single at-fault crash can leave you with a six-figure bill. Third party cover is the usual way drivers cap that risk.

What is the average cost of car insurance in NZ?

Comprehensive car insurance averages $1,311 a year (about $109 a month) in Q2 2026, based on quotes run through Quashed Market Scan. Auckland is the most expensive main centre at $1,496.

What is the difference between agreed value and market value?

Agreed value fixes the payout at a figure you and the insurer settle on when the policy starts, so you know exactly what you would receive if the car were written off. Market value pays what the car was worth immediately before the loss, which can be less than you expect on a car that has depreciated. Agreed value usually costs more.

Are other drivers covered on my policy?

Most policies cover any licensed driver you give permission to, but excesses change. A young or inexperienced driver almost always triggers a much higher excess, and some policies exclude under-25s entirely unless they are listed. Check the wording before lending your car.

Can I still get a multi-policy discount?

They are disappearing. Tower removed its multi-policy discount in January 2026, and several others have trimmed theirs. Bundling is no longer a reliable way to get the best price; comparing each policy separately often beats a bundle.

Are smaller insurers safe to buy from?

Every insurer licensed in New Zealand must meet Reserve Bank of New Zealand solvency requirements, and many smaller brands are underwritten by large international insurers. Financial strength ratings are published and worth a look, but a smaller name is not automatically a riskier one.

How long does it take to switch car insurers?

Comparing takes 90 seconds on Market Scan and buying takes roughly five minutes. You can cancel your old policy at any time and most insurers refund the unused portion pro-rata, so you are not locked in until renewal.

What is not covered by comprehensive car insurance?

Comprehensive covers sudden accidental damage, not wear and tear or mechanical failure — that needs separate mechanical breakdown insurance. Claims can also be declined if you were driving unlicensed, disqualified or over the limit, if the driver or the vehicle’s use was not declared, or if modifications were never disclosed. Anything costing less than your excess is effectively not covered either.

Does raising my excess actually lower my premium?

Yes, materially. In our worked example, moving from a $500 excess to a $1,500 excess cut the cheapest quote by around 20% — about $247 a year. The trade-off is that you carry more of the cost at claim time, so only raise it to a figure you could comfortably pay on the day. Watch for excesses that stack: a young driver, windscreen or theft claim often adds a further amount on top.

Why do quotes for the same car differ so much?

Insurers weight age, address, claims history and vehicle risk very differently. In Q2 2026 the gap between the highest and lowest quote in the same comparison averaged $651 — about 64% of the cheapest premium. There is no single cheapest insurer; the winner changes with the driver.

Compare your other cover

• House
• Contents
• Life
• Health

Reviewed July 2026 by James, Quashed. Figures are refreshed each quarter when the Quashed Insurance Index publishes.