Many New Zealanders are missing basic knowledge about their vehicle insurance policies, a new survey suggests.

Canstar research showed New Zealanders spent an average of $801 a year on their policies but while 87% said they preferred comprehensive cover, 32% did not understand what it entailed.

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. 

Canstar found 10% of those surveyed preferred third-party fire and theft, and the remaining 3% compulsory third-party.

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

State was 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 quality of its service, and throughout the customer claims journey – lodgement, process and outcome,” said Jose George, general manager of Canstar New Zealand. 

Executive general manager customer and consumer Kevin Hughes said he was proud.

“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 1782 Kiwi respondents had to have a current car insurance policy for which they were the bill-payer, they also had to have made a claim within the last three years.