Car owners downgrade insurance as premiums rise
Words NZ Autocar | Images Quashed, Car Expert
More people are looking to change their car insurance policy as premiums continue to rise, according to a NewstalkZB article. Some are considering moving to third party insurance only.
The insurance comparison website Quashed says that the comprehensive car insurance quotes have increased by 41 percent in the past two years. In the same period, quotes for home and contents insurance have risen by 31 percent.
Quashed CEO, Justin Lim, says more users are looking at their options, including third party insurance instead of comprehensive cover.
He added “Kiwis have had two, three, four years now of quite significant insurance premium increases. Consumers have learned to adapt to keep insurance affordable.”
“We haven’t quite seen the corresponding sort of switch across to third party car insurance yet but we have seen a 46 percent increase in interest.”
Prices still vary considerably between providers so it pays to shop around. On a 2020 Toyota Corolla, for example, five different Auckland insurers quoted annual fees from $960 to $1790.
Changing coverage, including the excess and the sum insured, could cut annual premiums by up to one-third. So the bill would be more like $673 in the case of the Toyota Corolla.
Switching to third party insurance could reduce premiums by up to two-thirds. Third party, fire and theft cover for the Corolla could be as low as $580.
One of the reasons for the rising rates, according to the Insurance Council, is that more people are buying new model cars that are more expensive to repair and replace.
Meantime cheaper, older cars are being targeted because they are easier to steal. While stolen vehicle claims dropped slightly last year, according to AMI, rates are still three times higher than they were five years ago.
Quashed says premiums average $1600 in Auckland, where car theft is more common. The average national figure is $1325.
People in their 30s and older drivers have seen their car insurance premiums rise by almost 45 per cent over the past two years. In the same period, younger people, aged 18 to 24, saw their premiums rise by just two percent.
