Brokers and advisers reviewing car insurance for clients at renewal have a data point worth raising: New Zealand policyholders rank claims handling and comprehensiveness of cover well above price when assessing their insurer, according to Canstar’s 2026 car insurance awards research, published in October 2026.
Yet only 28% of insured drivers shop around for a better deal each year, the same research found. That disconnect between active insurer competition and low consumer engagement is where advisers can add value.
Canstar surveyed 3,127 policyholders across 13 providers for its customer satisfaction assessment. Customer service (27%), comprehensiveness of cover (22%), and value for money (22%) were the top three satisfaction drivers. Communication accounted for 16%. Cost came last at 13%.
In the claims-specific assessment, covering 809 policyholders who had made recent claims, process (28%), communication (24%), and speed of response (21%) ranked as the top satisfaction drivers. Quality of repairs, ease of claim, and timeliness of repair or replacement followed at 14%, 9%, and 4% respectively.
Those results sit alongside findings from the Financial Markets Authority’s July 2025 review of insurer claims handling after the 2023 North Island Weather Events. The FMA found that 43% of one insurer’s complaints concerned the speed of claim progress, and only 43% of insurers included details in claim confirmations about how policyholders would receive progress updates.
For advisers placing personal lines business, this data provides a framework for renewal conversations. Clients who focus on price alone may not be assessing the factors that will matter most when they need to make a claim. Brokers who can benchmark claims performance and service quality across providers are better placed to demonstrate value beyond premium comparison.
Read next: Brokers rank 2025’s best claims insurers
Four providers received Outstanding Value awards for car insurance in 2026: State, AA Insurance, AMI, and Tower.
State, part of Insurance Australia Group’s (IAG) New Zealand operation, was named Car Insurer of the Year for the third consecutive year. The insurer also received awards for Outstanding Value Home & Contents Insurance, Most Satisfied Customers for Car Insurance Claims, and Most Satisfied Customers for Roadside Assistance. In both the claims and roadside categories, State’s customers scored the insurer the maximum possible marks across all assessment criteria.
AA Insurance retained its Outstanding Value award for the third consecutive year, with premiums below the market average across all profiles assessed. AMI earned back-to-back Outstanding Value recognition and was also awarded Outstanding Value for Home & Contents Insurance. Tower received its award after reducing under-25 premiums by around 14% year on year, though its family-with-young-driver premiums rose approximately 7%.
Wayne Tippet (pictured), executive general manager of customer at State Insurance in New Zealand, said the results reflected a focus on simplifying the experience for policyholders. “Our people are driven to provide simple, easy car insurance that customers can trust, backed by great service when they need it most,” Tippet said.
Canstar’s research highlighted competitive pricing movements across age profiles. State reduced its standard excess from $500 to $300 in 2026 and removed its age excess for drivers under 25. Even when Canstar quoted at a $400 excess for comparison purposes, premiums sat below the market average: around 8%-9% lower for 25-29 and 30-49 year old drivers, and 18%-25% lower for under-25, family, and 50+ profiles.
This pricing activity comes as the broader motor insurance market shifts. Gross written premiums for motor vehicle insurance fell 3.2% to $3.41 billion in the year ended December 2025, while gross claims incurred rose 3.1% to $2.25 billion, according to Insurance Council of New Zealand (ICNZ) annual market statistics. The motor loss ratio edged up to 63% from 62.2%.
IAG New Zealand’s own financial performance reflected this environment. The insurer’s annual insurance profit fell 22.9% in its 2026 financial year despite adding 80,000 new customers, according to interest.co.nz, illustrating the margin pressure facing providers even as they compete for market share.
Paul Uprichard, executive director of the New Zealand Underwriting Agencies Council, noted in an August 2026 Insurance Business report that increased competition gives brokers “greater opportunity to optimise the overall solution for their clients,” while cautioning against focusing on premium alone.
A separate 2025 survey commissioned by the ICNZ found that only 21% of policyholders regularly shop around at renewal and 25% never explore alternatives. Kris Faafoi, chief executive of the ICNZ, noted that “a relatively low number of New Zealanders consider switching their insurance provider.”
With providers competing on excess structures, claims service, and age-based pricing, clients who have not had their cover reviewed may be overpaying or missing product changes suited to their circumstances. The financial pressure on households adds urgency, as Insurance Business has reported on how insurance has become one of the top financial concerns for New Zealanders.
Read more: One in five New Zealanders switch insurers amid financial pressure
Canstar assessed 12 providers’ comprehensive car insurance products for its outstanding value ratings across six consumer profiles, while the broader customer satisfaction survey covered 13 providers. The broader New Zealand insurance market continues to see premiums level off after several years of sharp increases.
