How does a car insurance claim work in NZ?
General information, not advice on your situation. Buying through Tower's online quote is direct, without advice. QuoteHub is a Tower partner and Smiths Insurance & KiwiSaver may receive a commission from Tower.
In New Zealand you make a car insurance claim by making everyone safe, swapping details, photographing the damage, and then telling your insurer before you book any repairs. The insurer checks your cover, may send an assessor, and then either arranges the repair or pays out; Tower's wording says to tell it as soon as you become aware of anything that may lead to a claim (Tower comprehensive wording). The Insurance Council of NZ (ICNZ) gives the same advice, including having your policy number, photos and any Police report number to hand (ICNZ guide to making a claim). Tower's wording is the worked example below, because other insurers' wordings differ in detail, so check your own.
The claim in seven steps
Most claims move through the same stages. The table shows what you do and what the insurer does at each one, using Tower's claims page and wording (Tower claims page).
| Stage | What you do | What the insurer does |
|---|---|---|
| 1. At the scene | Make people and property safe, call emergency services if needed, take photos (Tower wording) | Nothing yet, but the wording says to call Tower if you need immediate assistance (Tower wording) |
| 2. Swap details | For a minor crash with no Police, exchange names, phone numbers, addresses, registration numbers and insurers (ICNZ guide) | Nothing yet |
| 3. Check your policy | Read your cover type, excess and any exclusions (ICNZ guide) | Nothing yet |
| 4. Lodge the claim | Claim online in My Tower, by the online claim form, or by phone (Tower claims page) | Explains the process and lodges the claim (Tower wording) |
| 5. Wait for approval | Do not book repairs or spend money on the claim without permission (Tower wording) | May ask for more information and arranges an assessor if needed (Tower wording) |
| 6. Decision | Answer questions and let the insurer inspect the car (Tower wording) | Decides whether the claim fits the policy and explains clearly if it does not (Tower wording) |
| 7. Repair or settlement | Pay your excess, then collect the repaired car or the payout (Tower wording) | Arranges the repair or pays out, covered in the settlement section below (Tower wording) |
Tower says over 87% of online car claims were approved instantly, based on the monthly average for online claims sent to one of its trusted repair partners between 1 April 2025 and 31 March 2026 (Tower car insurance page). That covers only claims sent online to those partners, so it is not a forecast for yours.
What to have ready before you lodge
You can still claim without a full set of details, but Tower says these help it process a vehicle claim faster (Tower claims page):
- the name, phone number, email address and registration number of anyone involved;
- your Police file number, if Police attended.
ICNZ adds the date and time of the incident, who was involved, the incident reference number and photos of the damage (ICNZ guide). For a theft claim you will need the Police report number, and Tower's wording says to tell the Police yourself if theft, arson, burglary or malicious damage appears to have happened (Tower wording). Tower also says that uploading photos or documents in My Tower can help it validate a claim twice as fast (Tower claims page).
Time limits for making a claim
There is no single legal countdown that applies to every NZ car policy, because the deadline sits in your policy wording. Tower's wording asks you to tell it as soon as you become aware of circumstances that may lead to a claim, and if it sends a claim form you must return it within 30 days (Tower wording). It does not set a fixed number of days for the first call in the wording read for this page.
Two practical points follow.
- Keep the car available. The wording requires you to let the insurer inspect the damaged car and to take reasonable steps to stop further loss, which is hard to do if the claim is left sitting.
- Check for your own deadline. Any notice period that applies to you sits in your policy wording or certificate of insurance, so check both rather than relying on a general rule.
Excess: what you pay and when you do not
The excess is the part of a claim you pay yourself, and it applies to each event that leads to a claim (Tower wording). Your certificate of insurance shows the amount, and extra excesses can apply for an inexperienced driver, some international licence holders or where underwriting has added one. The table shows when Tower's comprehensive wording waives or limits it.
| Situation | Excess under Tower's comprehensive wording |
|---|---|
| Another driver was more than 50% at fault and you have named them | No excess (wording) |
| Keys or locks lost, stolen or copied (that benefit only) | Excess free (wording) |
| Car stolen from a locked garage or secure parking building | Excess free (wording) |
| Windscreen or window glass claim | Excess applies unless you chose the optional windscreen excess buyout (Tower car page) |
| One event damages your car and another Tower-insured vehicle, boat, house or contents | One excess only, the highest of them (wording) |
ICNZ notes that many motor policies treat glass claims differently, and that once you have told your insurer and agreed which company does the work, the provider typically bills the insurer directly (ICNZ guide). Tower directs windscreen claims to its repair partner, NOVUS (Tower claims page).
Four common claims and what the wording says to do
The right first move depends on what happened.
- You reverse into a pole in a carpark. Nobody else is at fault, so your normal excess applies. Photograph the damage, lodge the claim, and wait for approval before any panel beater starts (Tower wording).
- A driver hits your parked car and drives off. You cannot name the party at fault, so the no-excess benefit does not apply. Tower's wording requires you to inform the Police if malicious damage or theft appears to have occurred and pass the acknowledgement number to Tower (Tower wording).
- A stone chips your windscreen. Tower sends windscreen claims to NOVUS, and your excess applies unless you chose the buyout (Tower claims page; Tower car page).
- Your car is stolen from a locked garage. Tell the Police, get the report number, and lodge the claim; that claim is excess free under Tower's wording (Tower wording).
What else a claim can pay for
A claim is not only the repair bill. Tower's comprehensive wording lists extras that apply once it has accepted a claim (Tower wording):
| Extra | What the wording says |
|---|---|
| Towing and temporary storage | Removal to the nearest repairer or place of safety if the car cannot be driven, plus storage, at reasonable cost (wording) |
| Transport costs | Travel and accommodation to finish your journey or get home, up to $500, extended to passengers and pets (wording) |
| Road clearing | Removing debris you must legally clear from a road or parking area, up to $1,000 (wording) |
| Rental vehicle (optional benefit) | A similar rental car or alternative transport, up to $1,000, and not for more than seven days after the claim is paid (wording) |
The rental benefit only applies if you chose it and it appears on your certificate, so most people will not have it by default. Roadside breakdown help is a separate matter, covered in QuoteHub's guide to Tower roadside assistance.
When the other driver was at fault
A not-at-fault claim still starts with your insurer if you want your own car fixed under a policy that covers it. Under Tower's comprehensive wording you pay no excess if you identify the party at fault with their name, phone number and registration number, and Tower is satisfied they were more than 50% at fault (Tower wording). After accepting a claim, you must cooperate with any action Tower takes to recover money from other parties, and let it take over legal rights of recovery you hold.
If the other driver has no insurance, the level of cover matters. Tower's third party, fire and theft and third party only wordings pay for repairs to your car, up to the least of the repair cost, market value or $4,000, if you identify the at-fault driver, Tower is satisfied they were more than 50% at fault and their vehicle was uninsured (third party, fire and theft wording; third party only wording). QuoteHub's guides to comprehensive cover and third party cover compare what each level repairs. Car insurance is not compulsory in New Zealand, which is why uninsured drivers exist; see is car insurance compulsory in NZ. For injuries, see how ACC and private insurance fit together, since a car policy's liability cover excludes injury where ACC provides cover.
Repair or write-off: how a claim settles
If the insurer decides the car is economic to repair, Tower can arrange the repair or pay the reasonable cost of repairs as assessed by it. The most it pays is the least of the repair cost, the market value at the time of loss and the agreed value on your certificate (Tower wording). If you use a Tower Repair Partner, the wording says Tower backs those repairs for as long as you own the car. Choosing a repairer outside its network may mean Tower pays a cash amount instead of arranging the repair.
Three details catch people out. Tower may use new, recycled or reconditioned parts. It does not pay for the cost of importing parts from overseas, or for any inability to match existing paint. And after a partial-loss repair it restores your sum insured to its pre-loss value (Tower wording).
If the car is a total loss, Tower pays the agreed or market value shown on your certificate, whichever applies, and pays any lender it has been told about. Unpaid instalments for the year are due before settlement, the car and any unused rego, road user charges and Warrant of Fitness (WoF) become Tower's, and the policy ends automatically (Tower wording). QuoteHub's explainer on agreed value and market value shows why that choice matters at this stage.
Why a claim can be declined or reduced
Tower's wording lists responsibilities that, if broken, let it decline a claim, recover payments already made, or cancel or avoid the policy (Tower wording). Common triggers include:
- statements that are not honest, correct and complete, whether at application or at claim time;
- a car that was not maintained to WoF standard, or was driven in an unroadworthy condition;
- not telling the insurer about business use, modifications or a new regular driver;
- repairs started before approval;
- a driver over the legal alcohol limit, without a valid licence, or who left the scene of an accident when that is an offence;
- agreeing with another party to accept responsibility when the law would not have held you liable.
One quieter rule: if another person makes a claim against you, the wording says not to discuss it with them and to refer them to the insurer instead (Tower wording). QuoteHub's pages on modified cars and what drives the price cover two of these in more detail.
If you disagree with a decision, ICNZ says to complain to the insurer first. Under the Fair Insurance Code the insurer acknowledges a complaint within five business days, responds within 10 business days and tells you about its external dispute resolution scheme if it cannot resolve things within two months. The two approved schemes are Financial Services Complaints Limited and the Insurance and Financial Services Ombudsman (ICNZ complaints page). Tower's own claims process is also covered in QuoteHub's guide to Tower insurance claims.
Getting a quote from Tower online
Before you compare how claims are handled, you will need your rego and the driver history for everyone who will drive the car. QuoteHub's link opens Tower's online quote, which is Tower's own quote tool. Other insurers sell car cover too, so the claims wording is worth reading wherever you buy. QuoteHub's Tower car insurance guide explains the covers Tower offers.
Questions people ask
How long do I have to make a car insurance claim in NZ?
There is no single figure, because it depends on your policy. Tower's wording asks you to tell it as soon as you become aware of circumstances that may lead to a claim, and to return any claim form within 30 days (Tower wording). Check your own wording and certificate.
Should I repair my car before the insurer approves the claim?
No. ICNZ says to contact your insurer before having any work done, and Tower's wording requires its permission before you arrange repairs or incur claim expenses (ICNZ guide; Tower wording). Emergency steps to stop further loss are still expected.
Do I pay an excess if the crash was not my fault?
Not always. Under Tower's comprehensive wording you pay no excess if you identify the other party and Tower is satisfied they were more than 50% at fault (Tower wording). Without those details, your normal excess applies.
Do I have to use the insurer's repairer?
Often, yes, in practice. ICNZ says repairs typically need to be done by the insurer's approved provider (ICNZ guide). Under Tower's wording, using a repairer outside its network may mean Tower pays a cash amount based on its own assessment of repair cost instead of arranging the repair (Tower wording).
Are things inside the car covered after a crash or theft?
Usually not by the car policy. ICNZ says personal possessions in a vehicle are not covered by motor insurance and may fall under a contents policy instead (ICNZ guide). Tower's wording also excludes personal effects and other contents left in the car, which need a separate contents policy (Tower wording).
What can I do if my claim is declined?
Ask the insurer for its reasons, which Tower's wording says it will explain clearly (Tower wording). You can then use the insurer's complaints process and, if it is not resolved, an external dispute resolution scheme at no cost to you (ICNZ complaints page).
Adviser's view
QuoteHub's read: the claim itself is usually straightforward, and what catches people out is repairing the car before the insurer approves it, or not knowing their excess and cover type until the day they need it.
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QuoteHub is a Tower partner. If you buy through this link, Smiths Insurance & KiwiSaver may receive a commission from Tower. Buying online is not financial advice.
Cite this page QuoteHub NZ (2026). How Car Insurance Claims Work in NZ. www.quotehub.co.nz/car-insurance/car-insurance-claims-nz. Updated 2026-10-07.
References
- ICNZ: Making a claim
- ICNZ: Making a complaint
- Tower: Submit your claim online
- Tower: Car insurance
- Tower: Comprehensive car insurance policy wording 09-24
- Tower: Third party, fire and theft policy wording 09-24
- Tower: Third party only policy wording 09-24
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