Ultimate NZ Guide to Car Insurance (2026): Compare & Find the Best and Cheapest Cover

Based on the latest Q1 2026 Quashed Index data published in April 2026, the average cost of comprehensive car insurance in New Zealand is $1,267 a year (or $106 a month).

Third Party Fire & Theft and Third Party Only policies typically cost significantly less than comprehensive cover, but prices vary widely based on your insurer, vehicle and driver profile. To see what you’d pay for these options, run a free Market Scan.

The average cost of car insurance in New Zealand has significantly increased since 2023, making it more important than ever to compare your options.

Important trend: Comprehensive car insurance premiums have declined for two consecutive periods after the sharp 38% spike in Q1 2024. That said, drivers rolling over their existing policies are still seeing an average 3% increase at renewal, so shopping around remains important.

There is no single “cheapest” car insurance company. The best price for you depends entirely on your profile and vehicle. Insurers calculate your premium based on these key factors:

• Driver: The driver's location, age, gender, claims history, and driving record.

• Vehicle: The year, make, model, and value of your car. More expensive or powerful cars cost more to insure.

• Coverage: The type of cover, your sum insured value, and the excess you choose.

Insurers also factor in their own business costs such as reinsurance, government levies, and profit margins. This is why prices can vary by hundreds, and sometimes thousands, of dollars for the exact same driver and car.

The only way to find the cheapest price for you is to compare multiple providers.

Choosing the right type of policy is your first major decision.

Comprehensive car insurance: The most popular choice in New Zealand. It covers damage to your car and other people’s property, giving you complete peace of mind.

Third Party (Fire & Theft / Only) car insurance: Primarily protects you from the huge cost of damaging someone else’s vehicle. With many late-model cars, EVs and SUVs on NZ roads worth $70,000 or more, the repair or replacement bill from an at-fault accident can run well into six figures. Third Party policies offer little to no cover for your own car, making them a common choice for those with vehicles worth less than $5,000.

To compare the price and cover benefits of car insurance across different insurance providers, use Market Scan, NZ’s #1 car insurance real-time comparison tool.

These two levers have the biggest impact on your premium.

• Sum Insured: The maximum amount the insurer will pay for your car. This should be its current market value, what it would cost to buy a similar one today on Trade Me or Turners.

• Excess: The amount you agree to cover first when you make a claim.

Here's an example using a 40-year-old in Auckland looking to insure a 2015 Toyota Aqua, based on the cheapest quote returned by Quashed Market Scan at each combination of sum insured and excess in April 2026:

A higher excess will lower your premium. As the table shows, increasing your excess from $500 to $1,500 can save you around 20%. At $15,500 sum insured, that is $247 a year.

A lower sum insured will lower your premium. As the table shows, lowering your sum insured from $15,500 to $5,500 can save 15% to 21% depending on the excess you choose.

Now that you understand the basics, use this framework to compare policies effectively.

• Price: Compare quotes from at least 4-5 different providers. Use a tool like Market Scan to do this in minutes instead of hours.

• Policy Benefits: Don’t assume all comprehensive policies are the same. Check the fine print for key benefits like rental car cover, glass replacement, and limits on stolen key replacement.

• Service: Read recent online reviews to see how the insurer handles claims and customer queries. Smaller, local providers often offer faster and more helpful support.

• Credibility: Look at the insurer’s Financial Strength Rating. This shows they have the capital to pay claims. The Reserve Bank oversees the insurers in NZ and has a minimum capital requirement in order for them to operate.

Picking the best car insurance for you comes down to comparing the prices, policy benefits, credibility and customer service of car insurance, so don’t skip out on comparing your cover.

Market Scan makes it fast and easy to help you find the cheapest and best car insurance.

Here is a look at some of the major players and competitive challengers in the NZ market.

Here is a shortlist of five alternative car insurance providers that you may not have heard of that could be the best car insurance option for you.

Ratings shown are the most recent publicly available at time of writing. Star ratings and review counts change over time, so always check the latest on each provider’s listing before you decide.

Car Insurance Policy Benefits Comparison

Market Scan is the only NZ car insurance comparison tool that lets you upload and compare your existing car insurance (e.g. AA vs AMI vs State vs Tower) policy side-by-side to other options in the market. This makes it easy for you to find the cheapest and best car insurance policy.

Check how your current car insurance price and policy compares HERE.

Comparing the market can save you over $800. In Q1 2026, Kiwis who shopped their comprehensive car insurance with the Quashed Market Scan found a cheaper policy 81% of the time, with average savings of $377 per year.

Example 1: 40-year-old male, Auckland, 2015 Toyota Aqua ($15,500 sum insured, $500 excess)

Cheapest Quote (Provident) = $1,251

Highest Quote (Tower): $2,169

Price Difference Gap/Savings = $918

Example 2: 40-year-old male, Auckland, 2022 Volkswagen Golf ($32,000 sum insured, $500 excess)

Cheapest Quote (Cove): $1,602

Highest Quote (AMP): $2,431

Price Difference Gap/Savings = $829

You can see that car insurance prices vary a lot from one car insurance provider to another. The amount you can save depends on what insurers are willing to offer you to insure your vehicle. The more options you compare, the more likely you will find greater savings.

If you’re not shopping around and switching your insurance cover from time to time, the insurers have little incentive to compete and lower their prices. They know you'll simply roll over the policy and keep paying more each year.

Find out how you can give yourself the best chance of finding the cheapest and best car insurance in a few minutes below. To get real-time quotes now, use Market Scan for FREE.

1. Shop Around Annually: This has the biggest impact, potential savings of 50% or more.

2. Increase Your Excess: Saves 10-25%.

3. Pay Your Premiums Annually: Most insurers still charge 10-20% more to pay monthly, though a small number have reduced or removed this loading, so check before you switch.

4. Review Your Sum Insured: Don't over-insure an ageing car. Saves 5-25%.

5. Build Your No-Claims History: A clean record can save you up to 30%.

6. Restrict Drivers to Over-25s: Saves 5-10%.

7. Improve Vehicle Security: A factory-fitted alarm or immobiliser can save 5-10%.

Shop and save on your car insurance with Market Scan for FREE.

Switching your car insurance is much easier than you think. You can switch at any time.

1. Compare the market with a tool like Market Scan to find a cheaper, better policy.

2. Purchase your new policy online. It usually takes about five minutes.

3. Cancel your old policy. Simply call or email your old insurer to cancel. They will refund you for any unused portion of the premium you had already paid.

Find the Best and Cheapest Insurance Today

Quashed.co.nz is NZ’s #1 online insurance platform that helps you to compare, shop and track all your policies on one simple dashboard.

Our unique Market Scan tool helps you to compare prices and policy benefits from over 10 insurance providers in real-time online, giving you a much more comprehensive comparison.

Find cheaper and better car insurance with Market Scan for FREE.

Frequently Asked Questions (FAQ)

Why is my car policy so much higher than last year, even with no claims?

Increasing cost of repairs, increasing use of technology, spikes in theft & risk and more climate-related claims have increased the cost for insurers, which they then pass on in price hikes. Profit margins also factor into the price of premiums.

Is it cheaper if I pay for the car policy for an entire year at once?

Most of the time, yes. Paying your premium annually is one of the easiest ways to save money. The majority of NZ insurers still charge a fee of 10-20% to pay by the month, which means an annual upfront payment can save $120-$240 on a $1,200 policy. That said, a small number of providers, including Assurant, now charge the same price whether you pay monthly or yearly, so it pays to check your insurer’s payment schedule before assuming an annual saving applies.

How much can I save by increasing my car insurance excess?

A significant amount. The excess is the amount you pay towards a claim, so a higher excess means you’re taking on more of the risk yourself. Based on Quashed Market Scan data for a 2015 Toyota Aqua in Auckland (April 2026), increasing your excess from $500 to $1,000 lowers the cheapest annual premium by around $90-$150 depending on sum insured. Taking the jump further from $500 to $1,500 saves around 15-20% a year, which works out to $138-$247 on the same profile.

Which specific car insurers are generally cheaper for young drivers (under 25)?

There is no single “cheapest” insurer for young drivers. The only way to find out is to get multiple, real-time quotes. A comparison tool is the most efficient way to do this.

Will bundling my car insurance (multi-policy discounts) actually save me money?

Most major NZ insurers have now stopped offering multi-policy discounts. Tower was the most recent to remove them, for new policies from 28 January 2026 and renewals from 1 January 2026. Only a small number of providers, such as MAS and Cove, still offer limited bundling benefits. In most cases, comparing across insurers will save you more than bundling.

Is a cheaper car policy from a smaller/online-only insurer as reliable as one from a big brand insurer?

All licensed insurers in New Zealand are regulated by the Reserve Bank and must meet strict financial solvency standards. This ensures they have enough capital to pay out claims. The main difference is usually in the service model (e.g., online-only vs. a full call centre) and marketing spend. A lower price often reflects lower overheads, not a lower ability to pay.

Which car insurance comparison website is the most comprehensive for NZ?

While several sites exist, some only provide information and static comparisons. A comprehensive tool like Quashed’s Market Scan is unique because it provides real-time, buyable quotes from a wide range of insurers and allows you to compare the specific policy benefits side-by-side, not just the price. You can also upload and compare your policy against other options they show.

Is it difficult to switch car insurance companies, and can I do it at any time?

It is incredibly easy and you can do it at any time. It’s a simple 3-step process: buy your new policy online or over the phone. Contact your old insurer via email or phone and tell them you want to cancel. They will give you a pro-rata refund for any unused portion of your premium. You do not have to wait until your renewal date.

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