Survey finds 32 percent New Zealander don't understand car insurance policy

“State scored particularly well for the quality of its service, and throughout the customer claims journey – lodgement, process and outcome,” says Jose George, General Manager of Canstar New Zealand.

With an average annual spend of $801, most would agree that it’s important to know what your car insurance covers. But Canstar’s recent customer satisfaction survey has found that while 87 per cent of us favour a comprehensive policy, 32 per cent don’t understand what it covers.

While not mandatory in New Zealand, comprehensive, third-party and third-party fire and theft insurance are available to policyholders – all of which offer different levels of cover. Our survey found that in addition to the 87 per cent of respondents who prefer comprehensive cover, 10 per cent prefer third party fire and theft, and the remaining three per cent compulsory third party.

The most frequent type of car insurance claim is for damage to the car (48%), followed by accident (32%). Theft from the car (3%) and theft of car (2%) represent much smaller proportions of claims made. Other claims make up the balance.

In terms of providers, State has been awarded Canstar’s Most Satisfied Customers Award for car insurance for the first time. Its overall customer satisfaction performance has steadily increased since 2014.

“State scored particularly well for the quality of its service, and throughout the customer claims journey – lodgement, process and outcome,” says Jose George, General Manager of Canstar New Zealand.

Executive General Manager Customer and Consumer Kevin Hughes said he is extremely proud that State has been recognised with the 2019 Most Satisfied Customers Award for car insurance.

“Cars are often one of the most valuable items we own, both in terms of value and convenience. We know our customers are busy people and we’re committed to taking care of them when they need us most so they can get back on the road as quickly as possible.”

“We’re excited to be recognised as the leading brand for overall satisfaction. It’s a competitive market and a testament to the efforts our teams make every day for our customers.”

Nine providers were compared on value for money, claims lodgement, process and outcome, quality of service, clarity of policy, communication and overall satisfaction. To take part in the survey, the 1,782 Kiwi respondents had to have a current car insurance policy for which they are the bill payer, they also had to have made a claim within the last three years.

Details about the Canstar Most Satisfied Customers Award – Car Insurance 2019 winner can be found on our website.