Manage State Insurance (New Zealand)

How to cancel state insurance in new zealand and get your refund

Understanding state insurance and why you might cancel

State Insurance is a major New Zealand insurer run by IAG New Zealand Ltd, offering comprehensive home, contents, motor and travel insurance products to Kiwi households and drivers. Your cover is managed through their website, mobile app, and customer service channels, making policy administration straightforward.

Sometimes cancellation makes sense: you've found better value elsewhere, your circumstances have changed, or you're consolidating policies with another provider. Whatever your reason, Stopee is here to guide you through the cancellation process so you understand exactly what happens to your cover and refund.

Common reasons to cancel state insurance

You might cancel because premiums have increased at renewal, you've found a competitor offering lower rates, you no longer need a particular policy type, or you're moving to a different insurer for bundled savings. Life changes fast, and your insurance should keep pace with your needs.

Your cancellation rights under new zealand law

Under the Consumer Guarantees Act 1993 and the Insurance Law Reform Act 1977, you have the right to cancel your insurance policy. For most policies, you're entitled to cancel at any time and receive a pro-rata refund of unused premiums. Travel policies specifically come with a 14-day cooling-off period where you can cancel for a full refund if your trip hasn't started and no claim has been made.

If State Insurance fails to honor your cancellation request or withholds a refund without valid reason, you can escalate to the Financial Markets Authority (FMA) or the Insurance and Mortgages Ombudsman (IMO), New Zealand's official dispute resolution service.

How to contact state insurance for cancellation

Stopee recommends contacting State Insurance through the method most convenient for you; each route is legitimate and leads to the same outcome.

Primary contact methods

• Phone (fastest for immediate confirmation): Call 0800 80 24 24 during business hours. A customer adviser will process your cancellation request and discuss any refund entitlements on the spot.
• Online messaging: Use State Insurance's Facebook Messenger, live chat on their website, or submit a contact form on their help pages. Messaging is ideal if you prefer a written record without waiting on hold.
• Through your account: Log into your policy portal on the State Insurance website or mobile app. Many policies allow you to view cancellation options or contact support directly from your account dashboard.

Information to have ready

Before you contact State Insurance, gather your policy number, personal identification (driver's license or NZ passport number), and your preferred cancellation date. This speeds up the process and prevents delays caused by back-and-forth verification.

Step-by-step guide to cancelling your state insurance policy

Follow this straightforward sequence to cancel your policy without unnecessary back-and-forth.

Cancellation process by phone

1. Call 0800 80 24 24 and wait to speak with a customer adviser.
2. Provide your policy number and personal details to confirm your identity.
3. Clearly state your intention to cancel and your preferred cancellation date (you can choose today or any future date before renewal).
   • Pro tip: If you're cancelling before renewal, specify a date that avoids pro-rata refund complications; for example, the day before your next payment is due.
4. Ask the adviser to provide the cancellation date verbally and listen carefully for any mention of fees or conditions.
5. Request written confirmation via email or SMS immediately after the call.
6. Confirm the refund amount (if applicable) and the method and timeline for payment.
7. Keep the confirmation message and your original policy documents together in a safe place.

Cancellation process via online messaging or contact form

1. Access State Insurance's Facebook Messenger, live chat, or contact form on their website.
2. Write a clear message: "I wish to cancel my policy number [your number] effective [your date]."
3. Include your full name and the email address or phone number associated with your account.
   • Pro tip: Take a screenshot of your message and their response for your records.
4. Wait for their response (usually within 24 hours on business days).
5. Reply to confirm all details: cancellation date, refund amount, and payment method.
6. Ask them to send formal written confirmation via email.

Cancellation through your online account

1. Log into your State Insurance account on the website or mobile app.
2. Navigate to your policy details or "Manage Policy" section.
3. Look for a "Cancel Policy," "End Cover," or "Contact Us" option.
4. Follow the on-screen prompts to specify your cancellation date and reason (optional).
5. If no automated cancellation option appears, use the in-app messaging feature to contact State Insurance directly.
   • Warning: Some apps process cancellations on the app platform, not through State Insurance directly. Always confirm via State Insurance that your cancellation has been recorded in their system.
6. Request email confirmation of your cancellation once processed.

What happens to your cover after cancellation

Once your cancellation is confirmed, you need to understand exactly what stops and when.

Your cover ends on the cancellation date

Your insurance cover ceases on the specified date you've agreed with State Insurance. From that moment, you cannot make new claims for events occurring after that date. Any incidents, accidents, or losses that happen after your cover ends are your own responsibility.

Warning: If you're cancelling car insurance before purchasing new cover elsewhere, you become uninsured the moment your State Insurance policy ends. This is illegal if you drive a car. Plan your cancellation so your new policy starts on the same day your State Insurance ends.

Automatic renewal stops

Once cancelled, State Insurance will not automatically renew your policy at the next renewal date. You will not receive a renewal notice or further premium charges. If you change your mind after cancellation, you must apply for a new policy; re-applying may result in different terms or pricing.

Your policy records remain available

State Insurance retains your policy documents and claim history for seven years as required by New Zealand insurance regulations. You can request copies of your policy schedule, any claim correspondence, or proof of cancellation at any time. Keep Stopee's guidance in mind: always retain your cancellation confirmation and final policy statement for your own records, especially if you made claims during your policy term.

Understanding your refund entitlements

A refund is not guaranteed for all cancellations, but you are entitled to one under most circumstances.

How refunds are calculated

If you've paid premiums in advance and cancel before the end of the paid period, State Insurance refunds the pro-rata unused portion. For example, if you paid NZ$500 for a six-month policy and cancel three months in, you're entitled to approximately NZ$250 back.

Refunds are calculated from the cancellation date forward, not backward from the date you applied. The exact amount depends on your premium amount, the period covered, and whether any claims were made.

When you may not receive a refund

• Cancelled after cover ends: If you cancel on or after your policy renewal date (when the next premium is due), you've already entered the next billing period. A refund is unlikely unless you cancel within days of renewal.
• Claims made during the period: Some policies apply administrative fees to refunds if a claim was processed. Confirm with State Insurance whether claims affect your refund.
• Outstanding premium or debt: If you owe State Insurance money for a previous claim or unpaid premium, they may offset your refund against what you owe.

Travel policy cooling-off period

If you're cancelling a State Insurance travel policy, you have 14 days from purchase to cancel and receive a full refund, provided your trip has not yet started and no claim has been filed. After 14 days, a pro-rata refund applies for the unused portion of your journey.

Refund timeline and payment method

State Insurance typically processes refunds within 5 to 10 business days after cancellation is confirmed. Refunds are returned to the bank account or payment method used for your premium. If you haven't received your refund after two weeks, contact State Insurance immediately and request confirmation of the refund reference number and expected payment date.

Pro tip: Monitor your bank statement carefully. Refunds occasionally appear as "State Insurance" or "IAG NZ" and can be easy to miss if you're not looking for them.

State insurance pricing and policy options

Understanding what you're currently paying helps you evaluate whether cancellation and switching is financially worthwhile.

Sample premium rates (2025)

These are sample rates only. Your actual premium depends on your personal profile, claims history, location, vehicle age, home condition, and chosen excess level. Use these figures as a reference point when comparing State Insurance to competitor quotes.

Common mistakes to avoid when cancelling

Cancelling insurance can feel straightforward, but small oversights often lead to cover lapses, missed refunds, or disputed charges.

Assuming your old policy covers you after cancellation

Once your cancellation date passes, your cover stops immediately. If you're switching insurers, your new policy must start on the same day or earlier. A gap of even one day leaves you uninsured and legally exposed, especially for motor insurance.

Not requesting written confirmation

Phone calls are easy to forget or misremember. Always ask State Insurance to send confirmation via email or SMS. Stopee advises keeping this confirmation for at least three years. If State Insurance later claims you never cancelled, you'll have proof that you did.

Forgetting to stop direct debit payments

Cancellation of your policy does not automatically stop your direct debit authority with your bank. If State Insurance still holds your bank details and your account isn't properly closed, they may attempt to charge you at the next renewal. Contact your bank and ask them to cancel the direct debit mandate if State Insurance doesn't confirm it's stopped.

Cancelling on the wrong date

If you specify a future cancellation date, State Insurance will continue to charge you until that date arrives. If you want to cancel effective immediately, say so clearly. Conversely, if you're expecting a refund, cancelling mid-month may result in a smaller refund than cancelling at the end of your billing cycle.

Not following up on missing refunds

Refunds sometimes take longer than promised or disappear in processing. If you haven't received your refund after three weeks, call State Insurance on 0800 80 24 24 and ask for the refund status. Request the transaction reference number and expected payment date in writing.

Your cancellation checklist

Use this checklist to ensure you don't miss any step and protect yourself throughout the cancellation process.

• Confirm your new insurance policy starts on or before your State Insurance cancellation date (especially for car insurance).
• Gather your State Insurance policy number, personal ID, and preferred cancellation date before contacting them.
• Contact State Insurance via phone, online messaging, or your account portal and clearly state your intention to cancel.
• Ask for written confirmation of the cancellation date, refund amount, and refund payment method.
• Confirm that your direct debit authority will be stopped or contact your bank to cancel it manually.
• Keep the cancellation confirmation and original policy documents in a safe place for at least three years.
• Monitor your bank account for the refund payment within 2 to 3 weeks.
• If the refund doesn't arrive, contact State Insurance again within 21 days and escalate to the Insurance and Mortgages Ombudsman if necessary.
• File a complaint with the Financial Markets Authority if State Insurance refuses to honour your cancellation or refund entitlements.

When to contact the insurance and mortgages ombudsman

If State Insurance disputes your cancellation request or withholds a refund without clear justification, you have a formal recourse under New Zealand consumer law.

Escalation triggers

Contact the Insurance and Mortgages Ombudsman (IMO) if State Insurance refuses to cancel your policy, denies a refund you're entitled to, or fails to process a refund within 30 days of your cancellation request. The IMO investigates disputes between consumers and insurers free of charge and can order State Insurance to pay compensation.

The Financial Markets Authority (FMA) oversees insurance conduct and handles complaints about breaches of the Insurance Law Reform Act 1977. If State Insurance's cancellation or refund practices breach consumer law, you can file a complaint with the FMA as well.

Contacting state insurance for cancellation and support

Use these contact details to reach State Insurance and formally request your cancellation.

Primary address and contact centre

State Insurance Customer Service
Telephone: 0800 80 24 24
Hours: Monday to Friday, 8:00 am to 5:00 pm (NZST)
Online: Facebook Messenger via State Insurance's official page, or contact form on stateinsurance.co.nz

Head office and mailing address (Hamilton, New Zealand)
State Insurance Limited
IAG New Zealand Ltd
Private Bag 92198
Auckland, 1142
New Zealand

For dispute resolution and escalation:
Insurance and Mortgages Ombudsman
Email: info@imo.co.nz
Telephone: 0800 888 202

Why you should cancel with confidence

Cancelling your insurance is your right under New Zealand law, and State Insurance must process your request within a reasonable timeframe. Stopee has helped thousands of consumers cancel policies with clarity and confidence, understanding their refund entitlements, and avoiding costly cover gaps. By following this guide, you'll navigate your State Insurance cancellation smoothly, protect your consumer rights, and ensure you transition to new cover without interruption. If you encounter any resistance, Stopee's step-by-step approach and escalation pathways empower you to resolve disputes quickly through official channels.