The importance of car insurance for Kiwi drivers

Car insurance gives Kiwi drivers important financial support and peace of mind as outlined in our guide. If you have an accident, your insurance policy can help pay to fix your own vehicle. It can also cover damages to other people’s cars.

Car insurance is like having a safety net. It lets you drive without always worrying about money troubles. When you choose the right policy, you feel secure behind the wheel. You can trust that you’re covered for many unexpected events.

Vehicle choice and car insurance premiums

When picking the right car, many people think about how well it saves fuel, how it looks, and its price. However, the brand and style you choose can greatly affect your car insurance. 

Insurers such as Cove, AA, AMI, and AMP consider several factors when determining your premium. They check how safe your car is, the price of its parts, and how often it gets stolen.

What’s more, cars with cheap and readily available parts usually have lower insurance premiums. When a claim is made, repairs cost less for insurers, which can translate into savings for you.

Justin Lim, CEO of Quashed, says “when choosing a vehicle, it’s crucial to understand how your choice of vehicle impacts your insurance premiums. High safety ratings and affordability of parts can help keep your costs down, allowing you to focus more on enjoying your drive as opposed to worrying about your wallet.”

So, it’s essential to look into and compare car insurance policies, especially when choosing a popular vehicle from Trade Me cars or a local dealership.

Insurance costs for the popular vehicle models in NZ

Did you know that your choice of car and location can significantly impact what you pay for car insurance in New Zealand, especially when considering the latest technological features?

Whether you're in Auckland, Wellington, or Christchurch, these costs can vary more than you might think.

From January to August 2024, we've gathered data showing how much your city and vehicle choice affect premiums for the most popular vehicles in New Zealand, as provided by our partner Turners. Check out the breakdown below:

Data from Jan to August 2024, Comprehensive car insurance only. Source: Quashed, Turners.

Looking at insurance costs across different vehicles and cities we can see the following:

• Cost variability: The Ford Ranger has the highest average insurance cost of $1,928 in Auckland, with an $809 difference between the highest and lowest premium costs. This highlights why Aucklanders should compare insurance quotes. Popular vehicles can often attract higher costs, especially in locations with high traffic densities or theft rates.

• Most economical option: The Toyota Corolla remains a budget-friendly choice, with an average insurance cost of $1,240 in Auckland, $989 in Wellington, and $958 in Christchurch. The maximum premium of $1,654 shows that even economical vehicles can incur significant insurance expenses, impacting overall ownership costs.

• Significant differences: The Toyota Hilux displays notable variability in premiums, particularly in Auckland, where the difference is $974 between its highest premium of $2,439 and lowest of $1,465. The Hilux is often used for off-road driving and heavy-duty tasks, which may contribute to higher premiums due to potential repair costs and increased risk of accidents.

• Mid-range vehicles: The Mazda CX-5 and Mitsubishi Outlander are competitive options when it comes to insurance. In Auckland, the Mazda CX-5 shows a difference of $513 between its highest premium of $1,716 and lowest of $1,203, while the Mitsubishi Outlander shows a difference of $784 in Auckland. This means buyers should consider both the purchase price and insurance costs for these vehicles.

Key takeaways for Kiwi drivers

Here are three key takeaways from our analysis:

1. Location matters: Your city can greatly influence your car insurance costs. Auckland tends to have higher insurance premiums, likely due to factors such as traffic density, accident rates, and the risk of theft.

2. Vehicle choice influences insurance costs: A Toyota Corolla, for example, may not be as desirable as a Ford Ranger but it could mean lower insurance costs overall, providing better affordability.

3. Shopping around can lead to savings: As the data shows, the difference between the highest and lowest costs for car insurance can be substantial. For instance, Auckland Toyota Hilux drivers could save up to $896 by comparing options. Taking time to compare quotes on platforms like Quashed can help Kiwi drivers find more affordable premiums and ensure they aren’t paying more than necessary for their car insurance.

So, what about your next car purchase?

Here are some key considerations:

• Research insurance costs before buying: Compare insurance quotes for different models using Quashed to understand how much you might pay. Even if a car seems affordable upfront, higher insurance premiums could make it more expensive in the long run. As Justin Lim, CEO of Quashed, points out, “including insurance in your car-buying decisions can help you avoid surprise costs and ensure that your new vehicle fits within your budget.”

• Consider your location: If you live in Auckland or plan to move there, be prepared for higher insurance premiums, especially for certain models. Conversely, if you're in a region with lower rates, you might have more flexibility in choosing a vehicle without worrying about exorbitant insurance costs.

• Consider vehicles with lower claims risk: Cars with high safety ratings, lower theft rates, or that are less costly to repair typically have lower insurance premiums. The Toyota Corolla, for instance, is a great example of an affordable-to-insure vehicle.

Comparing your car insurance options with Quashed

Quashed lets you compare quotes side-by-side. You can see the important features, benefits, and costs of each policy in real time. This makes it easy to find the cheapest car insurance that fits your budget and coverage needs.

Whether you need comprehensive car insurance, third-party cover, or something different, Quashed helps you make smart choices regarding an insurance provider. 

Tips in using Quashed to compare car insurance

• Sign up for free: For personalised car insurance comparisons suited to you and your vehicle, we invite you to sign up with your email. This gives you access to targeted options, whether you're insuring your current vehicle or browsing Trade Me for a new one.

• Gather your policy documents: Get details such as your car’s make, model, and any existing policy information to perform what we call a Market Scan. After signing up, a Market Scan gives you a clear and detailed overview of your options.

• Use the filters on the platform: Adjust the results of your Market Scan based on the type of cover (comprehensive vs. third party vs. third party, fire and theft), sum insured, and excess to find the best deal for you.

• Compare policy features: Look beyond price; check for optional extras like windscreen cover or roadside assistance, which can be especially valuable for new cars. Finally, make sure you read the policy wording.

• Potential buyers: You can use Quashed to evaluate the insurance costs of the cars you're considering buying. If you have the car’s number plate, that’s a helpful starting point. Additionally, be careful of the sum insured amount. Try using Trade Me’s free car valuation tool to help you determine an appropriate sum insured.

Wrapping it up

Understanding what affects car insurance costs is essential for every Kiwi driver. By staying informed about how vehicle choice, location, and safety ratings influence your premiums, you can make smarter decisions when selecting a policy that suits your needs.

Don't underestimate the potential savings that come from comparing insurance options—many drivers could find themselves paying significantly less simply by shopping around. With Quashed, you have the power to uncover the best deals tailored specifically to your circumstances.

So, before you hit the road in your next vehicle, take a moment to explore your options and ensure that you’re getting the best coverage at the best price. Sign up for free with Quashed today for personalised comparisons and to secure the peace of mind you deserve. 

Taking control of your insurance choices today can lead to substantial savings tomorrow!

FAQs

Why is car insurance so expensive in NZ?

Car insurance costs in New Zealand have climbed recently, and it's something many of us are feeling. Several factors are driving this increase. This includes:

1. Natural disasters: More frequent events, like the Auckland Anniversary Weekend floods and Cyclone Gabrielle, have led to a surge in insurance claims.

2. Rising costs: Inflation and advanced vehicle technology mean repairs are pricier, and supply chain issues make parts harder to find.

3. Reinsurance: With more claims from disasters, insurance companies are paying more for their own coverage, and these costs often flow through to us, the customers.

4. Cost recovery: Insurers putting up their prices to cover operating costs and profit margins.

How does Quashed help Kiwi drivers find the right car insurance?

Quashed helps you find car insurance in NZ easily online. You can compare quotes from different insurance companies quickly and in real time, which makes us different from others. With us, you can get a great deal on a comprehensive policy or any type of coverage you need.

For more details and answers to your questions, check out our car insurance FAQs.

If you want to understand more about the nuts and bolts of car insurance, read our .