1. Shop, compare and save

When it comes to saving money on car insurance, one of the smartest moves you can make is to shop around and compare quotes. Why’s that? It’s simple.Car insurance premiums have been on the rise with an increase of 19%.

But not everyone has experienced the same impact. Looking at the data in the tables below, you’ll notice that the increase in comprehensive car insurance costs varies significantly by age.

For younger drivers aged 18-24, premiums have risen by 10%, while those aged 25-30 have seen a massive 43% jump! In contrast, older drivers aged 61+ faced a 37% increase, but their overall premiums remain lower than younger groups.

Table 1: Average annual comprehensive car insurance costs by age (Q2 2024)

Table 2: Range of annual comprehensive car insurance premiums by age (Q2 2024)

Source: Quashed

So, what's the takeaway?

There’s a considerable difference between the highest and lowest premiums within each age group, reflecting how different insurers assess risk. For instance, if you’re aged 18-24, you could be paying as much as $2,358 or as little as $1,357—a staggering $1,001 difference! Even for drivers aged 51-60, the gap is still $633.

What does this mean for you?

There’s potentially a lot of money to be saved by reviewing your policy and exploring your options. Rather than automatically renewing with your current insurer, take the time to compare—it could make a real difference to your wallet.

That’s where Quashed comes in. We make comparing car insurance effortless, allowing you to check quotes from multiple insurers in real time—all in one place. No more jumping between websites or dealing with outdated info. With Quashed, you’ll have the latest car insurance insights at your fingertips, making it easier than ever to find the best deal.

2. Don’t get caught off-guard: factor in insurance early

If you’re shopping around for a new petrol car, EV or hybrid on Trade Me cars or at a dealership, it’s smart to factor in the insurance costs right from the get-go, just as you would with maintenance and running costs (eg petrol).

Although it’s easy to focus on the car’s price tag, vehicle reliability and fuel efficiency, overlooking insurance can lead to some unexpected financial expenses down the road - if you decide to think about it after the event. 

Different models, engine sizes, and safety features can all impact your car insurance premium, so make sure you’re getting a complete picture of the total cost of ownership. Doing this upfront on Quashed can help you plan your finances and make a more informed decision. 

How do you do this on Quashed? 

First, sign up to Quashed for free. This will allow you to compare car insurance policies in a way that’s personalised to your needs and current situation. 

Once signed in, click on "Market Scan" and select the option "I don’t have an existing policy" (since you are looking at a new car). From there, click on the "Vehicle" menu. If you don’t have a number plate, you’ll need to enter the details of the car you’re considering, along with your details such as age, date of birth, years of driving experience, accident or claims history, as well as your preferred insured amount and excess.

3. Think about a higher excess

This tip is an oldie but a goodie! One of the simplest ways to lower your car insurance premiums is by choosing a higher excess. Let’s break it down using an example with the Ford Ranger, one of the most popular vehicles in New Zealand:

Assumption: Ford Ranger XLT Double Cab W/S, sum insured $40,000, Christchurch location. Source: Quashed

By choosing a higher excess, you’re taking on a bit more risk, but the payoff can be significant. As illustrated above, bumping your excess from $100 to $1,500 could put up to $544 back in your pocket!

However, it’s crucial to find the right balance. While a higher excess means lower upfront costs, you need to be confident you can cover that amount if you ever need to make a claim. Always review your overall policy, including any optional extras and policy exclusions, to ensure you’re fully protected.

4. Get the right sum insured

If you're looking to keep your insurance costs in check, it’s crucial to ensure your sum insured is accurate. Overvaluing your vehicle means you could be paying more than necessary. Let’s take a closer look using the example of a 1997 Toyota Land Cruiser Prado:

Assumption: Toyota Landcruiser Prado, 50 year old male, Auckland location. Source: Quashed

So, how can you make sure your sum insured is accurate? Use Trade Me's free online car valuation tool — it’s quick, easy, and gives you a clear picture of your car's true value. Once you have this figure, plug it into Quashed to see how much you could save on your premiums.

5. Who's in the driver’s seat? List the right people

Ensure you list all regular drivers on your car insurance policy, including anyone using rideshare services like Uber, to maintain full coverage. 

However, it’s worth noting that drivers under 25 often attract higher premiums due to their increased risk profile. If younger drivers don't frequently use your car, consider leaving them off the policy to save on costs at each renewal.

If they only occasionally drive, many New Zealand insurers allow temporary additions, giving you flexibility when needed. Remember, it's crucial to be transparent with your insurer about who uses your car regularly, as failing to do so could result in a denied claim if an unlisted driver is involved in an accident. This approach helps you manage costs while ensuring you remain protected.

6. Switch up your cover: when third-party makes sense

If your car’s value has taken a dip, it might be time to rethink your insurance cover. Switching to third-party or third-party fire and theft could be a smart move to cut costs while still keeping yourself protected against accidental damage you cause to others. 

After all, why keep paying more when your car is worth less? This is especially crucial if your vehicle is on the list of New Zealand's most stolen cars.

To show you the potential savings, let’s use a Toyota Corolla SE valued at $3,300 as an example:

source: Quashed

In this example by switching to third-party fire and theft, you could save up to $560 per year!

But remember: this approach does have its downsides. Moving away from comprehensive cover means you won’t be protected against damage to your car, lost or stolen keys, or unexpected costs like emergency transport and accommodation.

The bottom line? Make sure the savings outweigh the risks for your situation. If your car's value has dropped significantly, switching could be a simple way to keep your insurance costs in check without losing essential protection.

7. Pay once, save more: why paying yearly can be better

Paying your car insurance annually can often save you more than opting for monthly payments. Check out these examples from our data:

source: Quashed Tip: once you’ve signed up to Quashed, you can use Market Scan to explore different payment options, including annual versus monthly payments, to see which arrangement offers the best savings for you.

Market Scan quotes are direct from insurers

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8. Secure your ride

Insurers may reward drivers who take proactive steps to reduce the risk of theft or damage. Consider installing devices like alarms and immobilisers, which make it more difficult for thieves to steal your car.

By boosting your car's security, you're not just keeping it safe—you’re also showing your insurer that you’re a safer bet, which could mean some savings on your insurance costs. Check with your insurer to understand how much of a discount they offer for security features.

9. Bundling your insurance

Bundling your insurance policies can be an effective way to snag savings and cut down on admin headaches! But before you jump in, remember that it's not always the cheapest route—insurers differ in pricing and coverage. Want to be sure you're getting the best deal? Use Quashed’s Market Scan to easily compare quotes and see if bundling or mixing and matching policies gives you the biggest bang for your buck!

10. Clean driving, bigger savings

Your driving record is your golden ticket to cheaper car insurance. It’s simple – the cleaner your record, the more you save! In fact, every kilometre you drive without a hitch could mean extra cash in your back pocket.

So how do you keep that record shining bright? Easy – treat every drive like it’s your chance to impress. Stick to speed limits, stay laser-focused, and give distractions the boot. Be the driver who’s always one step ahead, spotting hazards before they happen.

Wrapping it all up

You don’t have to be stuck with high car insurance premiums. By taking action—whether it’s comparing quotes, adjusting your excess, or reassessing your coverage—you can save significantly. And Quashed is here to help you make those smart decisions effortlessly.

FAQs

What factors affect the cost of my car insurance?

Many things can affect the cost of your car insurance for your own vehicle, including whether you opt for a comprehensive policy or third party cover.

Your personal situation, like your age, driving history, and where you live, matters, as does your individual circumstances. The kind of insurance policy you select, which can include coverage for damages like a sunroof, also counts. The market value or agreed value of your car matters, too. The amount of coverage you pick and the chances of accidental loss or damage are important influences as well.

Why are car insurance costs increasing in NZ?

Car insurance premiums in New Zealand are rising due to several factors. The surge in extreme weather events like Cyclone Gabrielle has led to more claims, driving up costs for insurers.

Additionally, modern vehicles with advanced technologies are more expensive to repair, and rising inflation and supply chain disruptions have further increased repair costs. There’s also been a noticeable jump in claim rates, with more accidents and expensive vehicles on the road. Finally, higher regulatory costs, such as the EQC levy, are contributing to these increases. Together, these factors are causing premiums to climb for many Kiwis.

To learn more, visit our car insurance FAQs.