Insurer Reviews

Tower Car Insurance Review 2026

By InsurspyPublished 21 June 2025

Introduction

In our 2026 editorial review, Tower offers three private-car insurance levels in New Zealand: Comprehensive, Third Party Fire & Theft, and Third Party. Tower also provides online quotes and the My Tower online self-service portal. Whether it is suitable for you depends less on a headline rating and more on the cover level, vehicle use, excesses, value basis, optional benefits and the current policy wording.

Our view: Tower is worth including in a like-for-like comparison if online self-service matters to you. We cannot assess whether it will be the lowest-priced or best-value option for an individual driver without comparable current quotes and policy documents.

For a wider starting point, see our New Zealand car insurance guide.

Tower car insurance at a glance

Area to compare	What our research found	Why it matters
Cover levels	Comprehensive, Third Party Fire & Theft, and Third Party are currently available for private cars.	Choose the level that matches the amount of risk you can afford to retain.
Third Party Fire & Theft	This level includes fire and theft protection for the insured vehicle and legal liability for damage to someone else’s property.	It sits between third-party-only cover and comprehensive cover; check the wording for its full scope and exclusions.
Uninsured-driver protection	Tower lists up to $4,000 for uninsured-driver damage under Third Party Fire & Theft where the at-fault driver is identified and more than 50% at fault.	This is conditional protection, not a substitute for comprehensive cover.
Vehicle use	Commuting is permitted, but Tower says private-car cover does not cover using the car for work. Tower also says its private and commercial policies do not cover rideshare or carshare services.	Use outside the permitted purpose can be a major coverage issue.
Multi-policy discount	Tower says new policies no longer receive a multi-policy discount; its terms say private-car policies ceased eligibility from 28 January 2026.	Do not assume a home-and-car bundle will reduce a new car-policy premium.

Understanding the cover choices

Comprehensive

Comprehensive is one of Tower’s current cover levels. Before buying, read the current wording and your quote carefully to establish what events, vehicle value basis, excesses, limits, exclusions and optional benefits apply to your particular policy. A policy label alone does not describe every entitlement.

Third Party Fire & Theft

Tower describes this intermediate option as covering fire or theft of your vehicle as well as legal liability for damage you cause to another person’s property. The stated uninsured-driver benefit has specific conditions: the other driver must be identified and more than 50% at fault, and the listed limit is up to $4,000. Confirm the current wording, applicable excess and eligibility before relying on it.

Third Party

Third Party is Tower’s other listed private-car cover level. It may be relevant where the main priority is liability protection for damage caused to another person’s property, but readers should check the current policy documents to understand what is and is not insured.

Important use restrictions to check

In our research, the permitted-use wording is a key decision point. Tower says commuting is covered, but using a privately insured car for work is not. It also says neither private nor commercial policies cover rideshare or carshare services, including Uber, Ola, Zoomy and Yourdrive.

Describe how you use the vehicle accurately when obtaining a quote.
Check whether your role involves work-related driving rather than ordinary commuting.
Do not assume rideshare, carshare or delivery-style use is covered merely because you hold motor insurance.
If your circumstances change, ask Tower how this affects the policy before continuing that use.

Discount update and regulatory context

The old assumption that a new Tower car policy can receive a multi-policy discount is no longer current. Tower says it no longer offers that discount on new policies, and its detailed terms state that private-car policies ceased to be eligible from 28 January 2026.

For transparency, the Financial Markets Authority says Tower was ordered to pay a $7 million penalty after admissions concerning misleading multi-policy-discount representations. The FMA also says Tower repaid more than $11.7 million in remediation. This enforcement outcome concerns discount representations; it should not be treated as evidence about an individual motor claim or a prediction of future claims outcomes.

Financial strength rating

Tower Limited discloses an AM Best financial strength rating of A- (Excellent), with a stable outlook, dated April 2026. A financial-strength rating is an assessment of an insurer’s financial strength; it is not a product recommendation, a customer-service score or a guarantee that a particular claim will be accepted or paid.

How to compare a Tower quote

When we compare policy information, we recommend looking beyond the premium. Consumer NZ highlights the importance of comparing value basis and excesses alongside policy terms. Ask the same questions of each insurer so your quotes are genuinely comparable.

Confirm the value basis. Check whether the quote uses agreed value or market value, and understand how that affects a total-loss settlement.
Check every excess. Identify the standard excess and any additional excesses that may apply in your circumstances.
Match the permitted use. Make sure commuting, work-related driving and any other intended use are correctly disclosed and allowed.
Read exclusions and limits. Pay particular attention to items and situations you may expect to be covered but which may be limited or excluded.
Compare the final premium and documents. Obtain like-for-like quotes, then review the certificate, wording, endorsements and selected options before purchase.

Practical Takeaway

Tower has three current private-car cover levels and online self-service, but the right choice depends on your vehicle, intended use and willingness to bear an excess or uninsured loss. Third Party Fire & Theft has defined fire, theft, liability and conditional uninsured-driver protection, while rideshare and carshare use are not covered under the private or commercial policies described by Tower.

Before deciding, get a current quote, disclose use accurately, compare excesses and value basis, and read the wording that applies to your quote. This article is general information, not personalised insurance advice; your certificate of insurance, policy wording, endorsements, eligibility and circumstances determine the cover available.

References

Author / Editorial Team

This content was produced by Insurspy’s internal editorial and research team. In our editorial review, we compare publicly available policy information and prioritise current insurer disclosures, regulator material and independent New Zealand consumer guidance. We review articles for accuracy and practical usefulness, but insurance terms can change and readers should verify the current documents before making a decision.

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