If there’s one thing most of us love, it’s saving a bit of cash—especially with rising living costs in New Zealand. When it comes to contents insurance, there are a few smart ways to trim those premiums. Let’s break it down and start saving!
1. Increase your excess and save more!
One simple way to lower your premium is to increase your excess. The excess is the amount you pay upfront if you make a claim.
By upping your excess, you're sharing a bit more risk with the insurer, but in return, you’ll enjoy lower premiums. It’s a trade-off—you’ll be paying a little more upfront if you need to claim, but you’ll be saving money in the long run if you don’t often need to use it.
Example: Sarah’s savings by adjusting her excess
Let’s take a hypothetical example of Sarah, a young professional living in Auckland. Sarah has a $50,000 contents insurance policy with an excess of $500. She recently decided to increase her excess to $1,000 after learning that it could lower her premiums. Here’s how this would affect her premium:
Excess | Yearly average contents insurance costs $ | Saving from changing the excess from $500 |
$500 | $570 | - |
$1,000 | $462 | $108 |
$2,000 | $418 | $152 |
Source: Quashed
By taking on a higher excess, Sarah ended up saving $108 annually. That may not sound like much, but over time, those savings can really add up. Sarah can now use that extra money for something important—like buying new gadgets or saving for a holiday!
Key takeaway: By simply adjusting your excess, you can save a significant amount on your premiums—just like Sarah did! Wondering if contents insurance is worth it? Our blog, Your Complete Guide To Contents Insurance, breaks down why it matters, how it works, and how to get started.
2. Secure your home & save on premiums
Investing in a solid security system can reduce your premium too. Installing burglar alarms, deadlocks, or even cameras can make you less of a target for thieves—something insurers absolutely love to see. Some companies offer discounts for properties with these features, so why not beef up your home security and save a bit more? Did you know? Insurers may offer up to 10% off your premiums just for adding security features like cameras or alarm systems. This can help you reduce the cost of coverage while increasing the protection of your belongings.
Looking for the best deals on contents insurance? Our guide makes it easy to find affordable options.
3. Shop around and compare with Quashed
It’s a no-brainer: compare quotes! Prices vary between insurers, so it pays (literally) to shop around. Get real-time quotes in minutes—compare live quotes side-by-side and instantly see the best options tailored to your needs. With Quashed, comparing policies is quick, easy, and transparent, so you can make an informed decision without the hassle.
Even if you’re happy with your current insurer, getting a quote from somewhere else gives you leverage when renegotiating your rate. Don’t miss out on the best deal—compare contents insurance today with Quashed and find the right coverage at the best price.
Want to know how Quashed measures up against MoneyHub? Read our full comparison here.
4. Keep an eye on your valuables
Being realistic about the value of your belongings can help save you money too. Overestimating can lead to higher premiums, and underestimating means you might not get the payout you expect. Do a home inventory every year or so and be realistic about what your belongings are worth. This ensures you’re not overpaying while keeping your coverage accurate.
Let’s look at a hypothetical example with Karen in Porirua, who is renting. Karen originally thought her belongings were worth $150,000, but after doing a proper inventory, she realised they were closer to $50,000.
Sum Insured | Yearly average contents insurance costs ($) | Saving from adjusting to $50,000 |
$150,000 (wrong valuation) | $1,266 | - |
$50,000 (correct valuation) | $881 | $395 |
Source: Data from Quashed real-time insurance comparisons
This scenario illustrates the importance of being realistic about your belongings’ value. Overestimating the worth can unnecessarily increase your premium, while underestimating it could leave you under-covered.
5. Avoid small claims— save big!
It might sound counter-intuitive, but frequent small claims can push up your premiums. If you can afford to replace something minor without claiming, it’s often better to do so. Insurers look favourably at those with a clean claims history, and you’ll likely see lower premiums as a result.
Feeling stuck on where to start with insurance? Our blog post on comparing insurance in New Zealand has tips to help you find the right cover — stress-free.
6. Pay annually instead of monthly
Did you know? Many insurers charge extra fees if you pay your premium in monthly instalments. By opting to pay annually, you could save yourself a small discount, lowering your overall cost. Sure, it might mean a bigger upfront cost, but it reduces your overall expense—and who doesn’t want that?
The average Kiwi household can save
$2,023.79 a year by shopping their insurance!
Find out how your renewal prices stack up against other options out there!
7. Ask about loyalty discounts
Been with your insurer for a while? It doesn’t hurt to ask for a loyalty discount. Some companies reward long-term customers with reduced rates. It’s always worth a quick call to see if this applies to you—after all, loyalty should go both ways!
Shop smarter with Quashed
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8. Avoid unnecessary add-ons
Insurers often offer extra add-ons to your policy, like accidental damage or extended cover for certain high-value items. While these can be useful, they also increase your premium. Review your policy and decide whether these add-ons are truly necessary. By stripping back to the essentials, you can often lower your premium.
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Lowering your contents insurance premium is about finding the balance that works for you. It’s worth assessing what you really need covered and then tailoring your policy to fit your lifestyle and budget. Whether it’s increasing your excess, beefing up your security, or shopping around for the best rates, these tips can help you trim that premium and keep more cash in your back pocket—where it belongs!
Get real-time quotes today and start comparing with Quashed. You can compare policies in minutes, find the best deal for your needs, and keep your premiums low—it’s easy!
FAQs
How can you lower the costs of your premium?
You can lower your premium by increasing your excess, securing your home, bundling your policies, shopping around, paying annually, and avoiding small claims. Asking about loyalty discounts can also help.
How much should contents insurance cover?
Your contents insurance should ideally cover the cost to replace everything you own. Conduct a home inventory to get an accurate value of your belongings—remember to include furniture, electronics, clothing, and any valuables.
Why should I use Quashed to find contents insurance?
Quashed makes finding the right contents insurance simple and stress-free. We provide real-time quotes and side-by-side comparisons, so you can easily compare coverage options, premiums, and excess amounts all in one place. No more switching between multiple websites or feeling overwhelmed by too many choices.
