FMG Insurance NZ Review 2026: Mutual Home and Car Protection for Kiwis

Step 1. Understand What FMG Is — and Who It Is Built For

The Background

FMG's origins trace back to 1905, when a group of New Zealand farmers established mutual fire insurance associations to give rural communities an alternative to offshore-owned insurers that lacked understanding of rural risks. Through a series of amalgamations, these associations came together as Farmers' Mutual Group in 1978. In 2025, FMG celebrated 120 years of continuous operation — one of New Zealand's longest-running insurers by origin, and the oldest that remains independently owned and operated.

Today FMG is structured as a mutual under the Farmers' Mutual Group Act 2007. That means it is owned by its members — not by shareholders. It employs over 900 people, operates from more than 30 regional offices, and serves over 129,000 members and clients nationally. FMG is also New Zealand's largest 100% Kiwi-owned and operated general insurer, and in 2023 became a Certified B Corporation — independently assessed against standards of social and environmental performance, transparency, and accountability.

What FMG Covers

FMG offers a broad range of insurance for both rural and residential customers:

• Home — covers your house and additional structures including garages, sheds, gates, fences, patios, retaining walls, and driveways. Automatic legal liability cover of up to $1,000,000 is included.

• Private vehicles — FMG's Superior Private Vehicles policy is its top-tier comprehensive cover for cars, trailers, horse floats, caravans, and motorhomes. An Essential policy covers third-party-only, third-party fire and theft, and fire and theft options.

• Household contents — covers personal belongings at home and on the go, including in Australia. Full-set replacement applies if a matching item cannot be found.

• Farm vehicles, farm buildings, livestock, crops, and commercial vehicles — reflecting FMG's rural roots.

• Life and health — underwritten through Fidelity Life, AIA, Resolution Life, and Southern Cross.

The Mutual Difference

As a mutual, FMG's structure means its focus is on delivering value to members rather than returning profit to shareholders. FMG describes itself as aiming to be 'profit-making rather than profit-maximising'. Between mid-2024 and mid-2025, FMG made premium reductions of around $35 million across several products, linked to improving claims trends — meaning some clients benefited through premium decreases or smaller premium increases at renewal.

This member-first model is worth understanding, but it does not mean FMG is automatically the cheapest or the best-fit insurer for every Kiwi. Premium pricing remains specific to your individual risk profile, vehicle, and location. Whether you live rurally, on a lifestyle block, or in the suburbs, the only way to know where FMG sits in the market for your specific situation is to compare — which is exactly what the free Quashed Market Scan is designed for.

Step 2. Review FMG's Car Insurance — Cover, Policy Types, and Key Features

FMG's Car Insurance Policies

FMG offers two tiers of private vehicle cover:

• Superior Private Vehicles — FMG's comprehensive policy, covering accidental loss, damage to the vehicle and its accessories, legal liability, and windscreen and glass. FMG recommends this level of cover for all vehicles.

• Essential Private Vehicles — FMG's third-party-level policy, available in four options: third-party only, third-party fire and theft, fire and theft, and fire only. Unlike some insurers, you can choose the combination that suits your needs.

The Superior Private Vehicles policy also includes automatic cover for new or replacement vehicles for up to 30 days after purchase while you update your details with FMG.

Optional Benefits You Can Add to the Superior Policy

FMG's Superior policy is designed to be extended. Optional benefits include:

• Hire charges — cover for up to $100 per day for 30 days from the date FMG accepts your claim, while your vehicle is being repaired or replaced.

• Misfuelling or fuel contamination — covers expenses if the wrong fuel is accidentally used, causing a breakdown or failure.

• Natural hazard (natural disaster) cover — FMG recommends considering this add-on for damage from earthquakes, volcanic eruptions, tsunamis, and landslides.

For commercial vehicle customers, FMG also provides fleet cover, with additions and deletions managed at renewal rather than mid-term — a practical advantage for rural and agricultural businesses.

What FMG Car Insurance Does Not Cover

Like all insurers, FMG's car policies have exclusions. The Superior Private Vehicles policy does not cover:

• Breakdown or failure of mechanical, electrical, or electronic systems (though damage to other parts resulting from such a failure may be covered).

• General wear and tear, deterioration, rust, or corrosion.

• Tyre loss from punctures, cuts, or brake application (unless this causes damage to other covered parts).

• Use of the vehicle for motor trade, driver instruction, or carrying goods (unless it is part of farming operations).

• Use by commission agents, insurance representatives, commercial travellers, or company representatives.

These exclusions are standard across most NZ car insurance policies. If your vehicle use is unusual or commercial, it is worth reviewing FMG's full policy wording at fmg.co.nz before purchasing.

How to Get a Quote and Make a Claim

FMG does not currently offer instant online quotes for new customers. To get a quote, you complete a short online form at fmg.co.nz and an FMG adviser contacts you — typically within one business day. For existing clients, FMG Connect (FMG's online portal) allows you to add or remove vehicles, update your details, and make windscreen and vehicle accident claims online at any time.

For claims, FMG can be contacted at 0800 366 466 or via FMG Connect. FMG uses a network of pre-approved repairers, which typically means faster repairs and guaranteed workmanship.

Because FMG does not offer instant quotes, comparing it against other NZ insurers who do — including AA Insurance, AMI, State, Tower, and others — requires using a comparison tool. The free Quashed Market Scan pulls real-time quotes from 10+ NZ insurers simultaneously, so you can see exactly how FMG's pricing compares without having to contact multiple providers individually.

Step 3. Review FMG's Home Insurance — What's Covered and What Makes It Different

FMG Home Policy Cover

FMG's Home policy covers your house and additional structures including garages, sheds, gates, fences, patios, and driveways. This breadth of structural cover — particularly the inclusion of gates, fences, and driveways — reflects FMG's rural expertise and is a genuine point of differentiation from some mainstream residential insurers.

Key automatic features of FMG's Home policy include:

• Accidental loss cover — the top tier of cover, protecting against a wide range of unforeseen events rather than only nominated perils.

• Legal liability up to $1,000,000 — automatically included, covering damage or loss you accidentally cause to someone else's property, or accidental bodily injury to another person at your section.

• Free replacement of locks and keys — if they are damaged, lost, stolen, or duplicated without your consent, with no excess to pay.

• Retaining walls — cover for repair or replacement of retaining walls, up to $50,000.

• Gradual damage from leaking pipes — cover for hidden damage caused over time by a leaking internal waste or water pipe (amount specified in policy).

• Natural disaster cover — FMG's home policy covers natural hazard damage, working alongside the Natural Hazards Commission Toka Tū Ake (NHC/EQC).

Optional Add-Ons for Home Insurance

FMG's home policy can be extended with optional benefits that are particularly relevant for rural and lifestyle block properties:

• Lifestyle block fencing — cover for fencing and windbreaks used in lifestyle block operations, up to $5,000.

• Lifestyle block pumps and motors — cover for breakdown or failure of pumps and motors servicing your lifestyle block, up to $5,000.

• Excess-free glass and sanitary fixtures — accidental breakage of glass doors, windows, skylights, permanently fixed mirrors, hand basins, baths, toilet bowls, or glass shower doors, without an excess applying.

FMG's Household Contents Policy

FMG's Household Contents policy is separate from the Home policy and covers personal belongings both at home and while away — including while travelling or on holiday in New Zealand and Australia. Notable features include:

• Full-set replacement — if a damaged item is part of a pair or set and a replacement cannot be found, FMG covers the replacement of the full set (excluding collections).

• Hearing aids, prescription glasses, and dentures — up to $5,000, or a higher agreed value.

• Student cover — up to $10,000 for a student studying away from home.

• Emergency accommodation — if FMG accepts a claim and your home cannot be lived in, up to $30,000 is available for temporary accommodation costs, moving, storage, and pet boarding.

• Fast advance payment — if all contents are destroyed, a $5,000 advance payment within 48 hours of claim acceptance (deducted from the final settlement).

FMG also offers a Rental House policy for investment property owners, which includes legal liability cover for accidental damage to a guest's property or injury at the property. This is particularly useful for rural and provincial New Zealand property investors.

For more information on how to compare home insurance costs across NZ providers, visit Quashed's Average Car, House, and Contents Insurance Costs NZ 2026 for the latest Quashed Index Q4 2025 data.

Sum Insured vs Area Replacement: Why FMG's Options Matter

One of the most important — and most overlooked — differences in home insurance is how your insurer calculates the maximum it will pay to rebuild your home after a total loss. Most mainstream NZ insurers now offer only sum insured cover, where you nominate a fixed dollar amount as your rebuild limit. If actual rebuild costs exceed that figure — as they often do during post-disaster surges when builders and materials are in high demand — you bear the shortfall.

FMG is one of the few major NZ insurers that still offers area-based replacement cover (also called full replacement). Under this option, your cover is based on the floor area of your home in square metres rather than a fixed dollar amount. If your home is destroyed, FMG covers the reasonable cost to rebuild to the same specifications — even if construction costs have risen since you took out the policy. This protects you against exactly the scenario that caught many Canterbury homeowners off guard: rebuild costs escalating well beyond their nominated sum insured due to surging demand for labour and materials.

FMG offers three levels of home cover:

• Replacement (area-based) — covers the reasonable cost to rebuild your home to an as-new condition, limited to the floor area in square metres on your policy certificate. This is FMG's highest level of home cover.

• Nominated Replacement (sum insured) — covers the reasonable cost to rebuild to an as-new condition, limited to the dollar amount on your certificate. This is the model used by most other NZ insurers.

• Present Day Value — covers the cost to repair or rebuild to the same condition your home was in before the loss, up to the sum insured. This takes into account the age and wear of your home.

If you are comparing FMG's home insurance against other providers, check whether each insurer offers sum insured only or whether area-based replacement is available. This distinction can make a material difference to your payout in a major claim — particularly in regions exposed to natural hazard risk. For a side-by-side comparison of home insurance pricing from 10+ NZ insurers, use the free Quashed Market Scan.

Step 4. Understand FMG's Awards Record — What It Means for You

The Awards

FMG's customer satisfaction record is the strongest of any insurer in the New Zealand market over recent years:

• Canstar Most Satisfied Customers — Car Insurance: FMG won this award in 2024 for the third consecutive year, and fourth time in five years. In 2024, FMG earned 5-Star ratings in four of the six award categories, and more 5-Star ratings than all competing insurers combined across 13 providers surveyed.

• Canstar Most Satisfied Customers — Home & Contents Insurance: FMG also won this award in 2024, making it a double award winner for the third consecutive year and fifth time in six years.

• Consumer NZ People's Choice Award: In 2024, FMG received this award for its home, car, and contents insurance for the eighth consecutive year. MAS also received the People's Choice award across all three categories in 2024, for the ninth consecutive year — making FMG and MAS the only two insurers to achieve this distinction.

• ANZIIF General Insurance Company of the Year 2023: Awarded by the Australasian Institute of Insurance and Finance, recognising FMG's response to the 2023 weather events — including Cyclone Gabrielle — which generated more claims than the Kaikōura and Canterbury earthquakes combined.

• B Corp Certification 2023: FMG became a Certified B Corporation, independently verified against standards of social and environmental performance, transparency, and accountability.

What the Awards Tell You — and What They Don't

FMG's satisfaction record is exceptional and consistent. For rural and lifestyle block customers in particular, FMG's combination of local adviser access, rural expertise, and mutual structure delivers a demonstrably different customer experience than mainstream insurers. The awards reflect that.

However, customer satisfaction and premium cost are separate questions. It is possible to rate your insurer highly on service while still overpaying relative to the rest of the market. Canstar's own data notes that only 24% of car insurance customers have actively researched a better deal — meaning most policyholders, including many happy FMG clients, may not know where their premium sits competitively.

It is also worth noting that in 2025, Canstar's Most Satisfied Customers awards for both home and car insurance were won by MAS — not FMG. The market for customer satisfaction, like the market for premiums, shifts year to year.

The right approach is to value FMG's service record while also checking its pricing against the market. If you are an FMG customer, use the free Quashed Market Scan at your next renewal to ensure that FMG's premium for your specific profile is competitive — and if it is, you can renew with confidence.

Step 5. Compare FMG Against the NZ Market — The Data You Need

What Kiwis Are Actually Paying: Car, House, and Contents

FMG offers car, home, and contents insurance — and all three markets have seen significant cost movement in recent years. To understand where FMG might sit relative to the market, you first need to understand what the NZ market looks like across all three product types. Quashed's Q4 2025 Index data, published in February 2026, provides the most current national picture:

Note: Wellington house insurance premiums are among the highest in the country due to seismic risk. Quashed's Q4 2025 data shows Wellington house insurance premiums are more than double Auckland's, averaging $4,394 compared to Auckland's $2,004. Nationally, house insurance premiums have risen 37% over three years from Q4 2022 ($2,062) to Q4 2025 ($2,815).

The Combined Household Insurance Bill

When you bundle all three policy types together — car, house, and contents — the total cost of insuring a typical New Zealand household has become a significant annual expense. According to Quashed's Q4 2025 data, the average combined annual cost of car, house, and contents insurance across New Zealand is $4,959, up 2% from the previous year and 37% higher than three years ago in Q4 2022.

This matters for FMG customers specifically, because FMG offers all three product types. If you hold car, home, and contents policies with any single insurer — including FMG — you have three separate opportunities to either save or overpay. Quashed's data shows that across all three product types, users who compare find savings:

• House insurance: Quashed users found cheaper cover in 61% of cases, with average savings of $673 per year.

• Car insurance: Quashed users found cheaper cover in 80% of cases, with average savings of $367 per year.

• Contents insurance: Quashed users found cheaper cover in 78% of cases, with average savings of $311 per year.

These savings do not require switching to a lesser insurer or reducing your cover. They reflect the reality that the same risk is priced differently across different providers — and that comparing is the only way to find where the market sits for your specific profile.

Why Regional Differences Matter for FMG Customers

FMG's client base is concentrated in rural and provincial New Zealand — the regions where insurance price variation is often most pronounced. Wellington house insurance premiums average $4,394 annually — more than double Auckland's $2,004. Canterbury homeowners pay an average of $2,778 per year. Nationally, house insurance premiums rose 4% year-on-year from Q4 2024 ($2,704) to Q4 2025 ($2,815). These regional differences are driven by earthquake risk, weather event exposure, and local rebuild costs — all factors that FMG's advisers understand deeply, but that also mean FMG's pricing in your specific region may or may not be the most competitive in the market.

For the full breakdown of national and regional insurance costs across car, house, and contents, read Quashed's Average Car, House, and Contents Insurance Costs NZ 2026. And to compare FMG's pricing across all three product types for your own property and vehicle, use the free Quashed Market Scan.

The Loyalty Tax

Quashed's Q4 2025 data shows that Kiwis who do not shop around their insurance pay an average loyalty tax of $1,351 per year across their combined car, house, and contents policies. This applies to customers of every insurer — including FMG. The potential savings identified by Quashed users — $673 on house, $367 on car, and $311 on contents — illustrate just how much is on the table for those who take the time to compare at renewal.

Final Verdict: Is FMG Right for You?

FMG is a genuinely distinctive insurer. Its mutual structure, 120-year history, rural expertise, local adviser network, and consistent customer satisfaction record set it apart from every other major general insurer in New Zealand. For rural, lifestyle block, and provincial New Zealand clients in particular, FMG's breadth of cover, policy flexibility, and community commitment make it one of the most compelling options in the market.

But FMG is not automatically the cheapest option, and its pricing — like all insurers — is specific to your individual risk profile. The same driver with the same car pays a different premium at every insurer. FMG's awards confirm it delivers excellent service; they do not confirm it is the most competitive price for your situation.

The right approach is straightforward: use the free Quashed Market Scan to see how FMG's real-time premium for your home and vehicle compares to the rest of the NZ market. If FMG comes out competitive, you can purchase or renew with confidence knowing you've done your homework. If another insurer is materially cheaper, you have the information you need to make an informed decision.

Related Reading

The Quashed team has the guides you need to make smarter insurance decisions at every stage:

• Comparing Insurance Costs for the Most Popular Cars in NZ — Real premium data for the Ford Ranger, Toyota Corolla, Toyota Hilux, Mazda CX-5, and Mitsubishi Outlander across Auckland, Wellington, and Christchurch.

• Ultimate NZ Guide to Car Insurance (2025) — Everything you need to know about car insurance in New Zealand: cover types, premium factors, and how to compare.

• Choosing Your Next Vehicle: How Car Make and Model Impact Your Insurance in NZ 2026 — How your vehicle choice drives your premium, with real data from Quashed's Market Scan.

• Electric Vehicles: Do They Cost More to Insure? — EV vs petrol and hybrid insurance cost comparisons using Quashed Market Scan data across three case studies.

• Average Car, House, and Contents Insurance Costs NZ 2026 — The latest Quashed Index Q4 2025 data on NZ insurance premiums, regional breakdowns, and the loyalty tax.

• Find Cheaper Car Insurance in NZ: 14 Proven Ways to Save Hundreds — Practical, data-backed strategies to reduce your car insurance costs without reducing your cover.

Frequently Asked Questions: FMG Insurance in New Zealand

Who is FMG Insurance?

FMG (Farmers' Mutual Group) is New Zealand's largest 100% Kiwi-owned and operated general insurer and the country's leading rural insurer. Founded in 1905, it is structured as a mutual — owned by its members, not shareholders — with all profits reinvested into the business. It operates from more than 30 regional offices and employs over 900 people across New Zealand. FMG is also a Certified B Corporation as of 2023.

Does FMG offer car insurance to non-rural customers?

Yes. While FMG's heritage is rural, its car and home insurance policies are available to any New Zealand resident — whether you live on a farm, a lifestyle block, in a provincial town, or in a city. FMG's Superior Private Vehicles policy is its top-tier comprehensive cover for everyday private vehicles. However, some of FMG's optional benefits and policy extensions are specifically designed for rural and lifestyle block properties.

What cover does FMG's Superior Private Vehicles policy include?

FMG's Superior Private Vehicles policy covers accidental loss and damage to your vehicle, its accessories, and spare parts; legal liability as the owner and driver; windscreen and glass; and a new or replacement vehicle for up to 30 days after purchase. Optional add-ons include hire charges (up to $100 per day for 30 days from claim acceptance), misfuelling cover, and natural hazard cover. FMG recommends this level of cover for all vehicles.

What awards has FMG won for its car and home insurance?

FMG won Canstar's Most Satisfied Customers awards for both car insurance and home and contents insurance in 2024 — the third consecutive year for both, and the fourth time in five years for car insurance. FMG also received Consumer NZ's People's Choice Award for its home, car, and contents insurance for the eighth year running in 2024, and was named ANZIIF General Insurance Company of the Year in 2023 for its response to Cyclone Gabrielle and the Auckland Anniversary Weekend floods.

Is FMG the cheapest car insurance in New Zealand?

FMG's pricing varies by vehicle, driver profile, and location — as it does for every insurer. FMG's awards are for customer satisfaction, not lowest price. The only way to know how FMG's premium compares for your specific situation is to get quotes from multiple insurers. Get a quote from FMG and then use the free Quashed Market Scan to compare it with 10+ NZ insurers in under two minutes.

How do I make a claim with FMG?

FMG claims can be lodged via FMG Connect — available online at any time — or by calling 0800 366 466. For vehicle accident and windscreen claims, FMG Connect allows you to submit and track claims digitally. For urgent queries, phone support is available during business hours. FMG uses pre-approved repairers, which typically means faster turnaround and guaranteed workmanship.

Does FMG car insurance cover a rental or hire vehicle?

FMG's Superior Private Vehicles policy includes an optional hire charges benefit, which covers the cost of hiring a replacement vehicle — up to $100 per day for 30 days from the date FMG accepts your claim — while your vehicle is being repaired or replaced. This is an optional add-on, not an automatic inclusion, so check your policy schedule to confirm whether it applies to your cover.

How does FMG's mutual structure affect my insurance?

As a mutual, FMG is owned by its members (policyholders), not external shareholders. Any surplus is reinvested into the business rather than paid as dividends. FMG describes its aim as being 'profit-making rather than profit-maximising', which gives it more flexibility to manage premium increases with members' interests in mind. Between mid-2024 and mid-2025, FMG made premium reductions of around $35 million across several products linked to improving claims trends.

Should I compare FMG even if I'm happy with them?

Yes. Quashed's Q4 2025 data shows that Kiwis who do not shop around their insurance pay an average loyalty tax of $1,351 per year across their combined car, house, and contents policies. Being satisfied with your insurer's service does not mean you are getting the best available price. Comparing at renewal is the responsible way to ensure your loyalty is being rewarded, not exploited. The free 

Quashed Market Scan takes under two minutes and shows you real-time quotes from 10+ NZ insurers alongside your current premium.