Car Insurance New Zealand

Car Insurance in New Zealand is optional for car owners, unlike some countries which impose compulsory third party insurance. Despite this, the majority of car owners in New Zealand insure their vehicles. Plus, in our latest Driver Survey we found that 97% of respondents agreed it’s important for all drivers on NZ roads to have some form of car insurance. And it’s easy to see why, when you consider that it could cost thousands to repair or replace a vehicle. Not to mention the cost to repair someone else’s vehicle or property, if you’re at fault in an accident. Car insurance can protect you from potentially huge repair bills or being without a vehicle.

Car Insurance to suit your needs and wallet

There’s no one-size-fits-all with car insurance, so that’s why there are different cover types to suit your situation. These range from Third Party car insurance which provides limited cover at a lower price, through to Comprehensive car insurance, offering fuller protection at a higher price. When choosing a cover type, consider the level of protection you need for your vehicle and how much you’d like to spend.

For greater flexibility, AA Insurance offers three different types of car insurance. That way, you can get all the cover you need (and nothing you don’t) at a price that suits.

Our cover types and optional extras

  • This policy provides cover for any costs you’re legally required to pay for damage you accidentally cause to someone else’s car or property. You get a lower level of protection for a lower price. 

  • This policy offers Third Party cover as well as protection if your vehicle is stolen or damaged by fire. You also get the option of adding excess-free glass cover to your policy, which gives you unlimited, excess-free claims on accidental damage to your vehicle’s windscreen or window glass.

  • This is the highest level of cover available. It gives you more protection at a higher price. You’ll be covered for any accidental damage to your vehicle as well as damage you accidentally cause to someone else’s vehicle or property. Our Comprehensive policy gives you greater flexibility to choose from additional options like rental cover and excess-free glass cover.

For a quick and easy comparison of our options, have a look at our car insurance comparison table.

Application for cover is subject to underwriting acceptance. Limits, excesses, terms, conditions and exclusions apply to the insurance cover referred to. For full policy and benefit terms and conditions please go to

Choosing the right excess for you

An excess is the amount you pay if you make a claim - it’s your contribution to the claim cost. With most car insurance in New Zealand you can choose from a range of excess options. The higher the excess you choose, the lower your premium will be. However, if you select a higher excess you need to ensure you can afford to pay this amount if you make a claim. Finding the right excess is about balancing the premium you’d like to pay with the amount you can afford to pay at claim time.

It’s easy to compare cover types and excess options with us. Simply get a quote to compare prices for each product, excess and optional extras, if they apply, to suit your budget.

Get the best out of your car insurance

Make sure you get the best deal on your insurance. Consider any discounts you may be eligible for such as Multi Policy Discounts and AA Member Discounts.

Keep in mind that getting the best deal isn’t just about price and discounts. You may find the cheapest option isn’t the best deal because it doesn’t give you all the protection you need. When comparing insurers, it pays to check that you’re comparing like with like.