Car insurance premiums soar by up to 38 per cent in NZ

A recent survey conducted by Consumer NZ has found that car insurance premiums have risen by as much as 38 per cent since 2021.

With that being said, the consumer watchdog is encouraging Kiwis to shop around for car insurance as they could save up to hundreds of dollars just by switching providers.

The survey looked at quotes for young, middle-aged, elderly people, and a family of four. It was found that older people saw the lowest median increase for premiums at 8 per cent, while a family of four experienced the highest at up to 38 per cent.

Consumer NZ says that if the family were to switch car insurers, they could see an average yearly saving of up to $670 on their premiums.

“The more an insurer needs to pay out on claims, the more likely they’ll need to charge customers more,” says Rebecca Styles, investigative team leader at Consumer.

“While there is a perception that all car insurance is the same, there are some differences between policies which could save you money.

“We found that younger people could save nearly $38 a month by shopping around, and older people could keep an extra $40 in their pocket.”

The survey also found that 10 per cent of people who didn’t have coverage chose to let their policy lapse due to cost.

Consumer NZ offered a few tips to ensure Kiwis get the best bang for their buck from car insurers, such as checking that your cover is right for you, reviewing your excess, staying away from ‘add-on’ insurance products, choosing one insurer for multiple policies, and paying your premiums annually instead of weekly or monthly.