State Insurance is one of New Zealand's oldest and most established general insurers, founded in 1905 and now part of IAG New Zealand Limited - the country's largest general insurance group. With over 400,000 customers and approximately 900,000 policies, State covers car, home, contents, landlord, travel, and motorcycle insurance. Rated AA (Very Strong) by Standard & Poor's and winner of multiple Canstar awards including Car Insurer of the Year 2024 & 2025.
In This Review
What is State Insurance and who's behind it?
State Insurance is one of New Zealand's oldest general insurers, founded in 1905. Originally a government-owned insurer, State was privatised in the 1990s and acquired by IAG New Zealand Limited in 2001 - at the time, State was New Zealand's largest general insurer. IAG is a subsidiary of Insurance Australia Group (ASX: IAG), the largest general insurance group in New Zealand and Australia.
Today, State operates as a business division of IAG New Zealand alongside sister brands AMI Insurance, NZI, and Lumley. State serves over 400,000 customers managing approximately 900,000 policies across New Zealand.
State holds an AA (Very Strong) financial strength rating from Standard & Poor's via IAG New Zealand. The company is a Licensed Financial Advice Provider for fire and general insurance, a member of ICNZ following the Fair Insurance Code, and operates under a Fair Conduct Programme (FCP).
State takes a digital-first approach, emphasising plain-language policies and online self-service. The company offers the following product range:
State Insurance sells policies directly to consumers online and by phone. The company's digital-first approach includes the State app and My State online account for 24/7 policy management.
How customers rate State Insurance across major review platforms
Note on rating discrepancy: State Insurance shows a significant gap between its Google rating (4.6/5) and Trustpilot (1.8/5) scores. Google reviews tend to capture everyday service interactions, while Trustpilot attracts a higher proportion of claims-related feedback - 81% of Trustpilot reviews are 1-star. Meanwhile, Canstar has awarded State Car Insurer of the Year in both 2024 and 2025, and Outstanding Value Home & Contents 2025. Consumer NZ survey data (Oct 2024) placed State below average for value, customer support, and communication. We do our best to keep all data up to date and accurate. If you've noticed something incorrect, please let us know.
Common themes from reviews across Google, Trustpilot, and Consumer NZ surveys
Claim was handled really efficiently. Had the payout sorted within a week of my car being written off. The assessor was great and kept me in the loop the whole time.
Signed up online in about five minutes. Pricing was competitive - actually came in cheaper than my renewal with my previous insurer. The app is handy for managing everything.
Had a terrible experience with a claim. Waited weeks for updates, called multiple times and sat on hold for over 45 minutes each time. The call centre seemed to be overseas.
Have my car and home insured with State. One excess for multi-policy claims is a genuine benefit. Been with them for years and never had a major issue.
Cancelled my policy but they kept billing me for two more months. Took multiple phone calls and a formal complaint to get a refund. Very frustrating.
State's been around since 1905 and that heritage gives me confidence. The Canstar awards back it up. Pricing is fair and the cover is solid.
Reviews are paraphrased summaries of customer feedback. Theme percentages are based on our analysis of available Google, Trustpilot, and Consumer NZ survey data as of March 2026.
State Insurance covers 8 major insurance categories with a focus on car, home, and contents
Three levels of cover plus dedicated Electric Vehicle Insurance. Winner of Canstar Car Insurer of the Year 2024 & 2025. Includes up to $20 million third-party liability.
Comprehensive home cover including natural disaster protection. Up to $30,000 temporary accommodation - above many competitors. Also includes Home Construction Insurance for new builds.
Comprehensive contents cover with up to $2 million legal liability. Includes identity theft coverage as standard - a useful inclusion that not all insurers offer.
Designed specifically for tenants. Covers contents and personal belongings without needing to insure the property itself.
Three landlord cover options - Home only, Contents only, or combined Home & Contents. Designed for property investors with tenant-specific risks covered.
Comprehensive and Third Party motorcycle cover. Includes automatic helmet coverage under Comprehensive claims, with optional protective clothing add-on for leathers and safety gear.
International and Domestic (NZ) travel insurance. Claims are handled by Cover-More, a specialist travel insurance provider.
A range of business cover options including liability, vehicle, assets, and interruption. Specialist packages for tradies, builders, couriers, and taxi/rideshare drivers.
The good and the not-so-good based on customer reviews and our analysis
How much does State car insurance actually cost? Indicative examples based on market data
State Insurance positions itself in the mid-market range. Canstar noted that State's premiums remained stable while the broader market saw approximately 14% increases - contributing to its Car Insurer of the Year wins. Three car insurance tiers offer flexibility at different price points.
Disclaimer: These are indicative estimates based on publicly reported data and market analysis. Actual premiums vary based on your individual circumstances. Always obtain a personalised quote from State Insurance for accurate pricing.
Auckland typically costs more than regional areas due to higher theft and accident rates.
Higher-value vehicles cost more to insure. SUVs and performance cars attract higher premiums than sedans.
No claims in the past 3-5 years significantly reduces your premium. Recent at-fault claims increase it.
Garage parking is cheapest. Off-street parking costs moderately more. Street parking attracts the highest premiums.
Choosing a higher voluntary excess ($500-$1,000) can reduce your monthly premium by 10-20%.
Insuring car, home, and contents together with State may reduce your overall premiums through multi-policy discounts.
State Insurance vs. other popular NZ car insurers
| Feature | State | AA Insurance | AMI | Tower | Cove |
|---|---|---|---|---|---|
| Overall Rating | 3.8/5 Canstar winner | 3.8/5 3,131 reviews | 3.9/5 | 4.0/5 | 4.7/5 2,381 reviews |
| Cover Types | Comp, TP, TPFT, EV | Comp, TP, TPFT | Comp, TP, TPFT | Comp, TP, TPFT | Comprehensive only |
| Online Quotes | Instant | Instant | Instant | Instant | Instant |
| Billing | Monthly or Annual | Monthly or Annual | Monthly or Annual | Monthly or Annual | Monthly only |
| Min Driver Age | Any (with excess) | Any (with excess) | Any (with excess) | Any (with excess) | 21+ |
| Max Vehicle Value | No stated limit | No stated limit | No stated limit | No stated limit | $80,000 |
| Roadside Assist | Add-on ($39/yr) | AA Members | Add-on | Add-on | Add-on |
| Windscreen Cover | Included | Included | Included | Included | Add-on |
| Product Range | 8+ categories | 13+ categories | 10 categories | 8 categories | 3 categories |
| Price Range | $$$ | $$$ | $$$ | $$$ | $$ |
Disclaimer: Ratings are aggregated from Google, Trustpilot, and industry awards. Features may change - always verify details directly with the insurer. Data current as of March 2026. If you've noticed something incorrect, please let us know.
Other NZ insurers worth considering, depending on your priorities
Joint venture between Vero and the NZ Automobile Association. Covers all 13 insurance categories - the broadest range of any NZ insurer. AA Member discounts can make it very competitive.
Sister brand to State under IAG. Strong in regional NZ with a large branch network. A solid alternative if you prefer face-to-face service over digital-first.
NZ-owned insurer with innovative features like SmartDriver discounts and risk-based pricing. Strong digital platform and transparent approach to pricing.
Digital-first insurance brand offering car and pet insurance at competitive prices. Monthly billing with no lock-in contracts. May suit drivers aged 21+ who prioritise value and a fully online experience.
State Insurance may suit some customers more than others
Over 120 years of NZ insurance history, an AA financial strength rating, and Canstar award wins give confidence in a well-established provider.
The State app and My State online account allow 24/7 policy management, online claims, and digital self-service - well-suited to customers who prefer managing things digitally.
One excess for multi-policy claims and potential bundle discounts make State competitive for customers insuring car, home, and contents together.
Customers who prioritise phone-based service with short wait times, or those wanting the lowest possible price without brand considerations.
Compare.org.nz's editorial assessment of State Insurance
With over 120 years in the NZ market, an AA (Very Strong) financial strength rating via IAG, and back-to-back Canstar Car Insurer of the Year wins (2024 & 2025), State Insurance has clear strengths. The company's digital-first approach, plain-language policies, and multi-policy benefits are genuine differentiators.
However, the gap between State's industry awards and its Trustpilot rating (1.8/5 - with 81% 1-star reviews) is concerning. Consumer NZ survey data (Oct 2024) also placed State below average for value, customer support, and communication. Common complaints include long call centre wait times, overseas representatives, and billing issues after cancellation.
For customers who value brand heritage, a digital-first experience, and competitive car insurance pricing - particularly if bundling multiple policies - State is a solid choice. Those who prioritise responsive customer service or the lowest price may find alternatives like Tower or the insurance brand Cove more suitable.
Common questions about State Insurance
How we research and rate insurance companies
This review is based on data collected from the following sources, last verified in March 2026:
Our editorial scores (out of 10) are calculated using a weighted methodology that considers:
Disclaimer: Nothing on this page constitutes financial advice. Scores are editorial opinion based on publicly available data. Always verify details directly with your insurer and consider seeking professional advice for your specific situation. We do our best to keep all data up to date and accurate. If you've noticed something incorrect, please let us know.
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