Facing rising insurance costs

It’s no secret that insurance premiums are climbing. According to the Quashed Index Q3 2024, young Kiwis aged 25-39 have seen insurance costs rise by an average of 10-15% over the past year. For first-time buyers, these costs add up quickly, especially with new expenses like mortgage payments and maintenance.

While it’s easy to feel discouraged, these costs don’t have to be a roadblock. With the right approach, you can manage premiums while ensuring your home and finances stay protected. If you're curious about the recent premium hikes, check out our in-depth analysis on why house insurance premiums are increasing and what it means for Kiwi homeowners.

Why insurance matters: more than just a bill

Think of insurance as your financial backup plan. You hope you’ll never need it, but when something goes wrong, it’s a relief to have it. Insurance isn’t just another expense; it’s a tool for stability and peace of mind. Here’s 4 reasons why why it’s worth a second look:

1. It’s your financial safety net (that’s getting pricier)

Rising premiums are the reality, but that’s because insurance protects you when things go wrong. Finding a balance between affordable premiums and adequate coverage is key.

2. Unlike rates, you have control over insurance

Council rates are fixed, but with insurance, you have choices. For home, car, and contents coverage, you can shop around and compare. Tools like Quashed let you view your options all in one place, making it easy to find a policy that works for your budget.

3. Cheap coverage can mean big gaps

That bargain policy might look appealing, but if it doesn’t cover what you need, it’s a false economy. Look beyond the price tag to make sure your policy gives you real protection where it matters.

4. Think of insurance as security, not just a cost

Good insurance gives you peace of mind. It’s like locking your door at night—you do it because it makes you feel secure. Insurance is there to help you enjoy your home without constant worry.

Rising premiums got you wondering about your options? Our House Insurance: A Homeowner’s Guide has everything you need to know to protect your home—and your wallet.

Making insurance part of your financial plan

Insurance isn’t just about paying bills now—it’s a part of your larger financial picture. The smart choices you make today can have a big impact on your financial future.

For example, if you used KiwiSaver to help with your deposit, you may want to rebuild those savings. By adjusting your insurance—such as bundling policies or increasing your excess—you can free up money. Even saving $300 annually on premiums could make a difference if reinvested in KiwiSaver over time.

Ask yourself:

• Are you comparing insurance options regularly to get the best deal?

• Would raising your excess reduce your premiums significantly?

• How much more could your KiwiSaver grow if you reinvested these savings?

Overcoming common insurance challenges

As a new homeowner, insurance can seem daunting, but making informed choices now will pay off. Consider this: if you save $300 on premiums each year by bundling policies or choosing a higher excess, that’s $300 back in your pocket—or more to invest in your future.

Are you making insurance decisions that align with your long-term financial goals?

Tips for finding the right insurance 

Here are a few strategies to help you find the best deals for house, car, and contents insurance as a first-time buyer:

• Bundle your policies: Many providers offer discounts if you bundle house, car, and contents insurance. This not only saves you money but makes it easier to manage all your policies in one place. However, it's essential to evaluate each policy's coverage and cost individually. Not all insurers provide the best value across all policy types.

• Adjust your excess: A higher excess (the amount you pay on claims) generally lowers your premiums. Choose an amount you’re comfortable covering.

• Shop around every year: Don’t just renew your policy without checking other options. Tools like Quashed make it easy to compare rates and find deals that suit your budget and needs.

• Customise your cover: Tailor your policy based on your situation. For example, if you own an older home, you may need extra coverage for repairs. A new build may allow for more cost savings on coverage.

Curious about house insurance beyond just the rising costs? Check out our House Insurance: A Homeowner’s Guide for tips on picking the right cover and making the most of your policy.

Using Quashed for smart insurance choices

Quashed simplifies insurance shopping. Instead of juggling multiple websites or endless phone calls, Quashed lets you compare policies and customise coverage in one place. Use it to explore how small adjustments—like raising your excess—could lower your premiums without sacrificing important protections.

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Take a fresh look at insurance

Insurance for first-time homeowners doesn’t have to be complicated or expensive. By rethinking your approach, you can make insurance a powerful part of your financial strategy. It’s not just a bill—it’s a flexible tool that can protect your home, your finances, and your future.

With options like Quashed, you can simplify comparisons, find the right coverage, and even save on premiums. Take charge of your financial future by choosing the insurance that fits your goals, and enjoy the confidence that comes from knowing your new home is secure.