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State car insurance review

With over 100 years in the New Zealand insurance market State has the right policy for almost every Kiwi car insurance need.

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★★★★★ – Awarded Highly Commmended car insurance brand by consumers in the Finder Car Insurance Awards 2021.

You can buy your choice of full or limited car insurance coverage when you take out a car insurance policy with State. All State policies offer Fly Buys points on your premium payments and a special discount for applying online.

State Insurance – key facts

  • State Insurance is a division of IAG New Zealand Limited, which also underwrites its policies. IAG has a financial strength rating of AA- (Very Strong).
  • State Insurance has been offering insurance for over 100 years and manages approximately 900,000 policies in New Zealand. It has offices around the country but also an online self-service portal called My State.
  • State Insurance also offers a range of other insurance products, including house and contents, travel, and business.

What cover options does State offer?

Name Product Legal Liability Agreed or Market Value Accidental Damage Roadside Assistance
State Comprehensive Car Insurance
Optional roadside rescue, windscreen glass cover and hire car add ons.
State Third Party, Fire and Theft Car Insurance
Optional roadside rescue and windscreen glass cover add ons.
State Third Party Car Insurance
Optional roadside rescue and windscreen glass cover add ons.

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You get third party cover as a minimum on all State car insurance policies. You can add additional cover by opting for more encompassing policies, with the provider’s comprehensive policy offering the best protection against car ownership risks. Read on for more details on what’s covered by State.

Buying comprehensive car insurance is advisable if you are able to afford it as this type of policy ensures that, under most circumstances, you will not be liable for any losses due to accidents, theft or fire. You just need to pay the excess agreed in your policy.

State’s comprehensive policy includes:

  • Cover for damage due to an accident, irrespective of who is at fault
  • $5,000 towards defending the driver against a manslaughter charge
  • $20m in legal liability cover if you cause an accident that results in property loss or physical injury to someone else
  • $2,000 towards accidental death, $1,000 towards loss of a foot, eye or hand
  • Cover for medical expenses, up to $500
  • Up to $300 to repair locks and replace keys
  • Reimbursement for towing your car back to a safe place
  • Reimbursement for travel, ensuring passengers get home after an accident
  • $750 in cover for repairs to a trailer

Under this policy, you will gain cover for any damage or injury caused to a third party while also enjoying protection in case your car is stolen, or damaged in a fire.

The policy includes:

  • Up to $3,000 in cover if your car is damaged in an accident and it’s the fault of an uninsured driver
  • Legal liability cover of up to $20 million to pay reparations in case an accident caused by your driving causes property loss or injury to a third party
  • $5,000 towards your own defence if you are charged with manslaughter after an accident
  • Cover for damage by fire
  • Reimbursement if your car is stolen
  • Transportation back home for you and your passengers if your car is rendered undrivable

For some drivers third party-only insurance can be a good choice, especially if your car is no longer worth a lot.

A State third party policy covers:

  • Up to $3,000 to repair damage to your car if you are in an accident where an uninsured driver was at fault
  • $20 million in liability cover in case your driving results in an accident leading to physical injury or property damage to a third party
  • Up to $5,000 to cover your legal defence costs if you are in an accident and you’re charged with manslaughter as a result
  • Towing to get your car back to a safe place or to a repairer

What is generally excluded by State car insurance?

Most policies contain exclusions to protect the insurer from unreasonable claims. At State, the list of exclusions includes:

  • Accidents where the driver had a blood-alcohol level above the legal limit
  • Accidents where the driver was under the influence of drugs
  • Drivers who do not hold a legal driving license
  • Drivers who refuse to stop at the scene of an accident
  • Electrical or mechanical breakdown
  • Modifications to your car which has not been reported to and approved by State
  • Driving your car in an unsafe or unroadworthy condition
  • Using your car for racing or testing
  • Using your car to carry fare-paying passengers
  • Nuclear accidents, war or terrorism
  • Tyre damage consisting of punctures, cuts or caused by braking

How much excess will I pay?

State Car Insurance will ordinarily charge you an excess for a claim. This is the portion of the claim that you will have to pay. Your excess will be set when you apply for a quote at State.

At State, there is an exception to excess rules. You won’t be expected to pay an excess if an accident is caused by the driver of another vehicle, provided you can identify the driver to State and that the driver admits that they are at fault.

How to save on your State Car Insurance policy

  • Buy online. State offers a $50 discount if you buy your comprehensive policy online, with lesser discounts for policies with third party coverage.
  • Multi-policy discount. You can save up to 10% if you take out another policy with State, such as contents insurance for your home.
  • Collect Fly Buys points. If you currently collect Fly Buys points you can top up your account by taking out a policy at State. Every level of cover qualifies for Fly Buys points, you get one Fly Buys point for every $25 in premiums you pay.
  • Trim options. Hire car and windscreen cover can be great options to have should you need to claim, but these options will increase your premium.
  • Choose less cover. Comprehensive policies are the best option if you want to be fully protected, but you can save a significant amount by opting for a third-party-only policy.

How do I make a claim?

Claiming from State Car Insurance is easy. You can do so online, or by calling the State toll-free number. There are a few steps you need to take to make sure your claim is successful, including:

  • After an accident, make sure you do whatever you can to prevent further damage to your car
  • Record the personal details of all parties involved in the accident
  • Inform State Car Insurance as soon as possible
  • Allow State Car Insurance to examine the car

Other benefits of getting insurance with State

State offers a number of optional coverage arrangements which can come in handy in case you need to make a claim. The company also offers a few other perks some car owners may find attractive.

  • Hire car option. $50 a day towards a hire car if your car is under repair.
  • Roadside recovery option. Roadside rescue for a range of circumstances that would otherwise leave you stranded.
  • Repair guarantee. Any repair work carried out as a result of a claim is carried out by State’s approved repairer network. These repairs are fully guaranteed for as long as you own your car.
  • Agreed value. State may pay the agreed value of your vehicle in case of theft or a write-off, instead of market value. This can leave you better off in case of a claim.
  • Mobile app. You can download State’s mobile app to get access to offers, to make a claim or to renew your policy.


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