Getting multiple car insurance quotes is one of the easiest ways to save hundreds of dollars per year. Pricing varies dramatically between NZ insurers for identical cover.
Get at least 3 quotes — AA Insurance, AMI (or State), and Tower/Youi. Prices can vary 20–40% for identical cover. AA Insurance is most trusted for claims service. Tower and Youi can be significantly cheaper for some profiles. Trade Me Insurance is worth checking for straightforward vehicles. Always compare agreed value vs market value and check the excess structure.
NZ Car Insurance Provider Comparison
| Provider | Ownership | Known for | Best for |
|---|---|---|---|
| AA Insurance | NZ (AA + IAG joint venture) | Trusted brand, claims service | Peace of mind, families |
| AMI | IAG (Australia) | Competitive pricing, widespread | Value, multi-policy discount |
| State | IAG (Australia) | Same as AMI, different pricing | Compare vs AMI — often different price |
| Tower | NZ (NZX-listed) | Risk-based pricing, digital experience | Clean-record drivers, digital-savvy |
| Youi | South African-owned | Very personalised pricing | Worth quoting — can be cheapest |
| Trade Me Insurance | Underwritten by major insurer | Simple, online | Straightforward vehicles |
| Turners Insurance | NZ (Turners Group) | Used cars, specialist vehicles | Used car buyers |
AA Insurance — Most Trusted Claims Service
Best for: Those who prioritise claims handling over absolute lowest price.
AA Insurance is a joint venture between the NZ Automobile Association and IAG. It consistently ranks well in NZ consumer surveys for customer satisfaction and claims handling.
Standout features:
- “Choice repair” — you choose your own repairer (not just approved list)
- Emergency road assistance add-on available (different from AA membership)
- Agreed value standard on comprehensive
- Young driver excess (under 25) applies per incident, not blanket exclusion
- Multi-policy discount (car + contents = discount on both)
Pricing: Not the cheapest in most cases — you pay a premium for the service reputation. Worth paying for if claims experience matters to you.
AMI and State — Competitive IAG Brands
Best for: Value-oriented buyers; existing IAG customers wanting multi-policy discounts.
AMI and State are both owned by Insurance Australia Group (IAG) — but they use different pricing algorithms and often quote different prices for the same risk. Always get quotes from both AMI and State.
AMI:
- Widespread in NZ — strong rural and provincial presence
- Competitive pricing at most age/risk profiles
- Multi-policy discounts (car + contents + house)
State:
- Same owner as AMI, different pricing model
- Often cheaper than AMI for some profiles
- Also multi-policy discounts
Tip: IAG (which owns AMI, State, and is a partner in AA Insurance) is the dominant NZ insurer by market share. Getting quotes from all three IAG brands plus Tower and Youi gives you a good market picture.
Tower Insurance — Best Digital Experience
Best for: Clean-record drivers, tech-savvy users, those who manage insurance digitally.
Tower is NZ’s only NZX-listed insurer. It uses sophisticated risk-based pricing — meaning:
- Low-risk drivers (clean record, low mileage, good area) can get very competitive quotes
- Higher-risk drivers may get higher-than-average prices
Tower uses a good app and digital claims process. Worth getting a quote — it’s often one of the cheapest for the right profile.
Standout features:
- Strong digital claims experience
- Competitive pricing for low-risk profiles
- Various excess options
- Flexible cover customisation
Youi — Most Personalised Pricing
Best for: Drivers willing to answer more questions for a potentially lower price.
Youi is known for asking more detailed questions than other insurers (your daily commute, where you park, how often you drive). This personalised pricing means:
- Low-risk drivers can get notably cheaper quotes
- High-risk drivers will be priced accordingly (or declined)
Standout features:
- Potentially cheapest for the right profile
- 24/7 NZ-based call centre
- Strong claims service reputation
- Watch for: their pricing algorithm sometimes produces surprisingly high quotes for profiles that seem low-risk — compare carefully
Trade Me Insurance — Best for Simple Cases
Best for: Buying online quickly for a standard vehicle.
Trade Me Insurance (underwritten by a major insurer) is easy to quote online and often competitive for straightforward risk profiles. Not the most sophisticated product but functional.
How Much Can You Save by Comparing?
Real example: 38-year-old, Auckland, $25,000 Toyota RAV4, clean driving record, comprehensive
| Insurer | Annual premium (indicative) |
|---|---|
| AA Insurance | ~$1,350 |
| AMI | ~$1,180 |
| State | ~$1,100 |
| Tower | ~$1,020 |
| Youi | ~$950 |
Difference between highest and lowest: ~$400/year. Over 10 years: $4,000. It takes 15 minutes to get 5 quotes.
What to Check in Every Quote
1. Agreed value vs market value Agreed value locks in the payout if your car is written off. Market value fluctuates. For cars over $10,000: request agreed value and compare the premium difference.
2. Excess structure
- Standard excess (applies to all claims)
- Young driver excess (extra excess if driver is under 25)
- Voluntary excess (you can choose a higher excess for lower premium)
- Named driver excess (extra excess for unnamed/occasional drivers)
3. What’s included at no extra cost
- Windscreen replacement: some include free of excess; others charge standard excess
- Hire car after accident: some include; others are add-on
- Personal belongings in car: some include; others exclude
4. Uninsured driver benefit If a named uninsured driver hits your car, some insurers waive your excess. Check — it matters in NZ where many vehicles are uninsured.
Multi-Policy Discounts
Bundling car + contents (+ house) insurance with one provider typically saves 5–15%. AMI, AA Insurance, State, and Tower all offer multi-policy discounts. Check whether bundling is actually cheaper than separate best-price policies from different providers.