State car insurance review

We dive into what State’s car insurance policies cover, the available discounts on offer, and the top features of getting insured with the company.

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Updated 8 March 2024

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Latest State promotions

  • Earn Flybuys: Register your Flybuys number within State when you take out a policy and you’ll earn 1 Flybuys for every $25 you spend on your premiums.


  • Online discount: State offers an online discount of $50 for comprehensive policies, $25 for third party, fire and theft, and $10 for third party only policies.
  • Multi-policy discount: Combine any car insurance policy with State with a house, contents, motorcycle, or landlord’s policy and you’ll benefit from a 10% discount.
  • Annual payment discount: Pay for your insurance all in one go and save. We got quotes with State and found this discount was around 7% on average.
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    Author: Kevin McHugh, Head of Publishing at Banked.

    About State

    State used to be known as the State Insurance Office and it has been insuring New Zealanders for more than 100 years. Like AMI, State is part of IAG New Zealand Limited which has a financial strength rating of AA- (‘very strong’).

    If you want to speak to State’s customer service team you can call them on 0800 80 24 24. Through State’s online self-service platform ‘My State’ you can view your policies, update your personal details and make a claim

    State is a member of the Insurance Council of New Zealand (ICNZ) and abides by the ICNZ Fair Insurance Code.

    Car insurance policies available from State

    State offers car insurance options ranging from comprehensive to third party only.


    State’s most fully featured policy will pay out if you damage your vehicle and if you cause damage to someone else’s car or property.

    Key features

    • Legal liability cover up to $20m
    • Accidental loss or damage to your own car
    • Agreed value cover
    • Damage to your car by uninsured drivers up to your agreed value
    • Cover for keys and locks up to $300
    • Towing and transport expenses after an accident
    • Guarantee on repairs carried out by an approved repairer
    • Medical expenses up to $500 following an accident

    Third party fire and theft

    The third party fire and theft policy from State will cover your vehicle against fire damage or if it’s stolen. It will also cover for any damage you cause to another car or someone’s property.

    Key features

    • Legal liability cover up to $20m
    • Cover for fire or theft of your vehicle
    • Damage to your car caused by uninsured drivers up to $3,000
    • Cover for towing after an accident
    • Guarantee on repairs carried out by an approved repairer
    • Road clearing costs after an accident

    Third party

    State’s lowest tier of car insurance, its third party only option will pay out to repair damage you accidentally cause to the property of others, including vehicles.

    Key features

    • Legal liability cover up to $20m
    • Damage to your car caused by uninsured drivers up to $3,000
    • Cover for towing after an accident

    Get full details about what State covers in its car insurance policy document.

    Optional add-ons

    At an additional cost, State has a number of optional add-ons for your policy that you can choose for extra peace of mind.

    • Roadside rescue: For an extra $30 each year you can add State’s roadside assistance package to any of its car insurance policies. Roadside rescue includes 3 free callouts over the course of the year.
    • No excess windscreen and glass cover: Add this add-on to your policy and you won’t have to pay the excess if you need to claim to have your car’s windscreen, windows, sunroof or driving lights repaired. Available with all State car insurance policies.
    • Hire car: If your car is being repaired or was stolen, State will pay up to $50 per day for a hire car for up to 14 days.

    What’s special about State car insurance?


    State is one of the few insurers in New Zealand that has a rewards scheme.

    Earn Flybuys on your premiums

    Flybuys logo

    Take out your car insurance with State and you’ll be able to earn 1 Flybuys for every $25 you spend on your premium. You just need to make sure that you register your Flybuys number with the insurer when you first purchase the policy.

    Flybuys is a reward scheme with some flexibility. If you’re not so interested in Flybuys points, you can choose to earn New World dollars or fuel discounts at Z or Caltex instead. Just remember that you can’t convert points of one type to another once they’ve been earned.

    3 top ways to save on State car insurance

    If you know where to look, there are a number of ways to save when taking out car insurance with State.

    1. Take out 2 policies and save: State offers a multi-policy discount of 10% which rewards customers who have at least 2 policies. Combine your car cover with your house, contents, or another eligible policy and save.
    2. Buy online: State will also give you a discount if you buy your cover online, with the size of the discount varying with the policy you choose. Save $50 with a comprehensive policy, $25 will a third party fire and theft policy, and $10 with a third party only policy.
    3. Pay for your cover in one go: If you have money to pay for your year’s car insurance in one go, it can be a great way to save. We ran quotes and found that you could save around 7% if you pay annually. 

    Other insurance products offered by State

    As well as car insurance, State also offers:

    • contents insurance
    • house insurance
    • travel insurance
    • business insurance (liability, vehicle, assets, and business interruption)
    • motorbike insurance
    • trailer insurance
    • boat insurance
    • caravan insurance
    • landlord insurance
    • contract works insurance
    Picture of Kevin McHugh

    Kevin McHugh

    Kevin is the founder and Head of Publishing at Banked. With years of experience working in personal finance, insurance, and related areas, Kevin created Banked to help Kiwis make better financial decisions.