The current state of car insurance in NZ

According to the latest Quashed Insurance Index for Q3 2024, the average comprehensive car insurance premium in New Zealand has shot up to $1,346 - that's a whopping 18.1% increase over the past year. This significant jump means it's more crucial than ever for Kiwis to shop smart and compare their options.

These regional differences reflect variations in factors like traffic density, theft rates, and even the likelihood of natural disasters.

Age matters

Your age also plays a big role in how much you'll fork out for car insurance. Check out these average premiums by age group:

If you're a young driver, you might be feeling the pinch more than most. The Quashed Index shows that general insurance costs (including car insurance) for Kiwis aged 25-30 have skyrocketed by 58% over the past two years, rising from $2,960 in 2022 to $4,675 in 2024.

Comprehensive vs third-party insurance: what's best for Kiwis?

When it comes to car insurance in New Zealand, you've got options. Let's break down the difference between comprehensive and third party cover.

Comprehensive cover

Comprehensive insurance is the full monty. It covers damage to your own car, as well as damage you might cause to someone else's vehicle or property. As we've seen, the average comprehensive car insurance premium in NZ is now $1,346 per year.

Third-party cover

Third party insurance is the bare minimum required by law. It covers damage you cause to other people's property but not your own car. 

Which one should you choose?

The decision between comprehensive and third party insurance depends on several factors:

• Value of your car: If your car is worth less than $4,000, third party might be more cost-effective.

• Your financial situation: Can you afford to replace your car if it's written off?

• Your risk tolerance: Are you comfortable with the possibility of having to pay for repairs out of pocket?

For many Kiwis, the extra cost of comprehensive cover provides peace of mind that's worth the investment. However, if you're driving an older vehicle and are comfortable with the risks, third party could be a way to save some cash.

Tips for finding the best car insurance

So how do you find the right car insurance in New Zealand? Here are a few tips:

• Shop around: Don't just go with the first insurer you find. Use Quashed to compare quotes from multiple providers to find the best value.

• Assess your needs: Consider your vehicle, driving habits, and personal circumstances to determine the right level of coverage.

• Read the fine print: Understand exactly what is and isn't covered in the policy before you commit.

Remember, the goal is to find the car insurance that provides the greatest protection at a fair price - not simply the cheapest option available.

In addition to these tips, there are a few other important considerations when choosing car insurance in New Zealand:

• Understanding coverage for electric vehicles: Electric vehicles may have different insurance requirements than traditional gas-powered cars.

• Insuring specialty vehicles: Owners of unique models like the Toyota Aqua may need to explore specialist insurers.

• Comparing insurance costs by vehicle: The average cost of car insurance can vary significantly by make and model.

It’s a wrap

What matters most is that you and your vehicle are properly covered in the event of an accident or unexpected incident. may seem appealing, but the best coverage could end up saving you a lot of money and hassle in the long run.

Empower yourself to make the best choice for your car insurance! Sign up to Quashed to compare car insurance options tailored just for you. With just a few clicks, you can find the coverage that fits your needs and budget perfectly. Don’t miss out on potential savings—start comparing now and drive with peace of mind.