Car Insurance Policy Comparison - AMI vs AA vs State vs Tower and more
Compare the benefits and cover of New Zealand's most popular car insurance policies side by side in seconds with our comprehensive table and tools
Updated 29 September 2022
Our guide covers:
Our guide covers:
What makes a good car insurance policy?
While core cover is similar between policies, several key factors make or break a car insurance policy's effectiveness. By looking at these factors and comparing the different benefits in detail between providers, our guide helps readers see beyond the annual price and look at what offers true value.
Know This First: Car insurance is confined mainly to three cover levels, with the benefits standard between provider when it comes to comprehensive, third party and third party fire and theft.
To make an informed choice about which policy is the most suitable, it's essential to look at crucial policy features alongside the annual price. While not every feature compared below will be relevant, we have focused on completeness to present a comprehensive comparison of policies.
Our comparison considers:
Want to know what cars are favoured by insurers?
This guide in a nutshell - the video below outlines what you need to know about comparing car insurance policies:
Know This First: Car insurance is confined mainly to three cover levels, with the benefits standard between provider when it comes to comprehensive, third party and third party fire and theft.
To make an informed choice about which policy is the most suitable, it's essential to look at crucial policy features alongside the annual price. While not every feature compared below will be relevant, we have focused on completeness to present a comprehensive comparison of policies.
Our comparison considers:
- Customer Support - When you have a car accident, whether it be major or minor, customer support is really important.
- Excess Levels - The excess amount is what you need to pay before the insurer covers the rest of the repair or replacement costs. Excess usually starts at $400.
- Windscreen and Window Cover - Some insurers include it as standard, others sell it as an add-on, and some let you claim on it without paying the excess.
- No Claims Discount - Insurers aren't as upfront about their no claims discount policies as we'd like them to be. Our no claims discount guide outlines the differences in policies and how this can save you money if you stay loyal to one insurer.
- Multi-Policy Discount - If you're insuring your car along with your home and/or contents, some insurers offer a multi-policy discount. We look at these in detail.
- Temporary Replacement Car Cover - If your car is being fixed after a claimable event (i.e. accident), some insurers provide a temporary car.
Want to know what cars are favoured by insurers?
- Our guide to the cheapest cars to insure lists models which predominantly are compact in size, have small engines and are Japanese-made.
- The value of these cars (and the low risk nature of their drivers) makes them more attractive to insurers and therefore cheaper to insure.
This guide in a nutshell - the video below outlines what you need to know about comparing car insurance policies:
Compare Car Insurance Quotes With Our Top 2 Insurers
- Our research highlighted a shortlist of value-leading car insurers. We suggest including quotes from Tower Insurance and Cove Insurance when comparing to get an idea of what it's going to cost. Our compare Car Insurance guide has further information.
- As per this guide, we believe Tower Insurance has the most comprehensive car policy and leads on price in a number of our results, and its policy offers the greatest number of benefits.
- Cove Insurance is a challenger brand and users report finding price-leading insurance policies. Cove only offers comprehensive policies and excludes under 21 drivers.
- Getting a quote is easy and fast - five minutes is all you'll need.
- Switching car insurers can save you money - our top two insurers offered good deals year-round to attract new customers.
- Advertising Disclosure: Our reviews and research are based on price and coverage, but some insurers may pay MoneyHub a fee for a quote or policy etc. Our Advertising Policy has more details.
Car Insurance Policy Comparison - AMI vs AA Insurance vs Cove vs State vs Tower vs Trade Me Insurance
All comprehensive car insurance includes the following benefits:
Beyond these standard features, there are a number of 'must have' car insurance policy features. Some insurers offer these benefits for free or for an additional charge, while others exclude them and/or don't offer them as an add-on. Our aim is to make the key differences in the major insurers' car insurance policies clear, comparable and distinguishable.
Car insurance policies have a number of features – some are important while others are not. Our table below helps you understand what features we believe are a ‘must haves’ to help you make sure you buy the right policy.
- Collision cover, accidents caused by uninsured third parties
- Claims that were not your fault
- Liability protection, bodily injury including reparation and legal defence costs
Beyond these standard features, there are a number of 'must have' car insurance policy features. Some insurers offer these benefits for free or for an additional charge, while others exclude them and/or don't offer them as an add-on. Our aim is to make the key differences in the major insurers' car insurance policies clear, comparable and distinguishable.
Car insurance policies have a number of features – some are important while others are not. Our table below helps you understand what features we believe are a ‘must haves’ to help you make sure you buy the right policy.
‘Must have’ car insurance policy features: |
A good policy includes: |
Customer Support |
Phone Support to Make Claims - some insurers only offer online claims. Making a car insurance claim is often a stressful time, so we believe phone support is a must-have feature of any policy. |
Windscreen and Window Cover |
Excess-Free Glass Cover: This means your windscreen or any glass window will be repaired or replaced following a loss or damage claim without requiring an excess to be paid. If the policy doesn't include it, some insurers offer windscreen and window glass excess buyout, whereby you pay an additional fee for zero-excess cover. |
Loss or Theft of Keys |
Key Cover: If your car keys are lost or stolen, a good policy pays towards the cost of replacing the keys and/or any locks. The best policies offer this excess-free. |
Courtesy Car |
Free Alternative Car: If a claimable incident requires your car to be fixed, a good policy will include a free temporary car to keep you mobile while your car is replaced or repaired. If it's not included as standard, it should be an optional extra. |
Guaranteed Repairs |
Insurer-Backed 12-month guarantee: The best policies will guarantee any repair work carried out by the insurer's repairers. |
Adjustable Excess |
Adjustable Excess: The best car insurers offer flexible excess amounts, which allow their customers to adjust potential one-off costs (i.e. paying an excess) for the benefit of affordable ongoing policy costs. Most insurers offer excesses from $400 to $1,000. |
No Claims Discount |
No Claim Discount on renewal: The best insurers adjust their customers' premium costs if they're eligible to receive a no claims bonus. |
Breakdown Cover |
24/7 Breakdown Support: The best insurers optional low-cost breakdown assistance that covers your car if it breaks down and it needs repairing or taking to a garage. We believe such add-ons are more beneficial and cost-effective than AA Membership which instead covers a person, not any specific car. |
Road clearing costs, Towing and Temporary Storage |
Accident Restoration: If you have an accident, the best insurance policy will take care of the associated costs such as towing, road clearing and storage of your damaged vehicle. |
Child Seat Replacement |
Child Car Seat: If you have small children, a helpful benefit is an insurer who will replace your child seat(s) following an accident, fire or theft. Most insurers class child seats as an accessory. |
With the above must-have benefits outlined and understandable, we compare six major car insurance policies side by side to help identify the key differences:
Car Insurance Policy Comparison by Benefit or Service - AMI vs AA Insurance vs Cove vs State vs Tower vs Trade Me Insurance
‘Must have’ car insurance policy features: |
Tower (Most Comprehensive Policy) |
|||||
Customer Support (excluding breakdown) |
Toll-Free (standard hours) |
Toll-Free (standard hours) |
Toll-Free (standard hours) |
Toll-Free (standard hours) |
Toll-Free (standard hours) |
Toll-Free (standard hours) |
Windscreen and Window Cover |
Optional Extra (always excess-free) |
Optional Extra (always excess-free) |
Optional Extra (always excess-free) |
Optional Extra (always excess-free) |
Optional Extra (always excess-free) |
Optional Extra (always excess-free) |
Loss or Theft of Keys |
Not Covered |
Covered (excess-free if stolen, excess applies if lost) |
Covered ($100 excess) |
Covered (excess-free if under $300) |
Covered (first claim excess-free) |
Not Covered |
Courtesy Car |
Optional Extra |
Optional Extra |
Optional Extra |
Optional Extra |
Optional Extra |
Optional Extra |
Guaranteed Repairs |
Not Offered |
Lifetime Guarantee |
Quality Guarantee |
Guaranteed while insured with State |
Lifetime Guarantee |
Lifetime Guarantee |
Adjustable Excess |
Offered |
Offered |
Offered |
Offered |
Offered |
Offered |
No Claims Discount |
Included |
Not Offered |
Not Offered |
Not Offered |
Included |
Included |
Breakdown Cover |
Optional Extra |
Optional Extra |
Optional Extra |
Optional Extra |
Optional Extra |
Optional Extra |
Road clearing costs, Towing and Temporary Storage |
Included |
Included |
Included |
Included |
Included |
Included |
Child Seat Replacement |
Included |
Included |
Included |
Included |
Included |
Optional Extra |
Policy Documents |
Results:
- Our view is that Tower Insurance offers the most comprehensive policy, with an excess-free claim for lost keys, an optional excess reducing app for safer drivers and optional low-cost breakdown cover.
- All insurers offer breakdown cover as an optional extra, and it is likely to be significantly cheaper than an AA Membership. If you decide this is an option, most car insurers offer a competitive price for the service.
- While Trade Me Insurance is provided and managed by Tower, the policies are different and, as per the table above, the Tower policy offers more benefits.
- All insurers offer adjustable excesses, with AMI offering an excess as low as $100. Our guide to car excesses has more details.
Car Insurance Policy Comparison Frequently Asked Questions
While our tables above make car insurance policies more comparable, there will always be questions. We've anticipated the most common queries below.
What is the best car insurance policy?
Our research above found Tower Insurance to offer the most comprehensive coverage. However, there is no "best" policy as many factors influence the annual cost of car insurance. Our car insurance price comparison outlines more details about finding the right policy for your needs.
What does a standard car insurance policy exclude from its cover?
Car insurance is usually problem-free and most insurers accept claims without any resistance or requests for further information. However, some behaviour will invalidate a policy. This includes instances where you have:
Car insurance won't cover:
- Agreed to accept responsibility for an incident where the law couldn't hold you responsible
- Exceeded the alcohol limit or refused testing
- Left the scene of an accident or failed to stop
- Driven unlicensed or are non-compliant with your licence conditions (i.e. driving unlicensed passengers on a restricted licence)
- Caused criminal and reckless acts
- Driven unsafely
- Used the car for racing, off-roading, rallying, off-road etc.
Car insurance won't cover:
- Faults and defects
- Mechanical failure of the car
- Wear, tear and depreciation
Are optional extras such as breakdown cover and windscreen and glass cover worth the extra cost?
- It depends on your needs and budget. Most car insurers offer affordable breakdown cover for around $40/year, which is cheaper than AA Membership.
- Optional breakdown cover is, arguably, a cost-effective form of insurance that can save a lot of money if you do breakdown given the high one-off call-out fees.
- Windscreen cover is often sold as an excess-free additional benefit. While replacement prices vary, $400 to $800 is not an unreasonable range for windscreen replacement. However, whether it's right for you will come down to your budget.
What is excluded from car insurance cover?
Every policy has specific exclusions; the video below explains the fine print of one policy so you know the general events and items that won't be covered.
