Does Bundling Insurance Save Money in NZ? 2026

What Is Insurance Bundling and How Do Multi-Policy Discounts Work?

Insurance bundling means holding two or more policies, such as car, house, and contents, with the same insurer in return for a multi-policy discount. That discount was a percentage taken off your base premium, historically around 10% for two policies and up to 20% for three or more. It applied to the base premium only and usually excluded levies and other charges. For a long time, bundling was the standard money-saving tip in New Zealand. The problem in 2026 is simple: for almost every insurer, that discount no longer exists.

Do New Zealand Insurers Still Offer Multi-Policy Discounts in 2026?

Most do not. Between 2024 and early 2026, every major New Zealand insurer removed its multi-policy discount. State and AMI, both owned by IAG, began phasing theirs out in 2024. AA Insurance followed on 28 January 2025. Vero, along with the AMP and ANZ policies it underwrites, removed discounts from 1 May 2025. Tower and Trade Me Insurance, the last major holdouts, ended theirs in January 2026.

Note: Tower removed its discount in two stages. Some policies lost it on 28 January 2026, while others had renewals affected from 1 January 2026.

For a fuller breakdown of these changes and what they mean for your renewal, read The End of Multi-Policy Discounts in NZ? Why You Must Shop Around in 2026.

Which Insurers Still Offer Multi-Policy Discounts in NZ?

Two insurers still offer multi-policy discounts in 2026: MAS and Cove. They are the exception rather than the rule, and it is worth understanding how each programme works before assuming a discount is your cheapest option.

MAS offers two levels of bundle saving. Its Multi-Product Discount applies when you hold any two eligible policies, for example car and contents, or house and car. Its higher-tier Goldshield discount applies when you hold car, house, and contents cover together, rewarding a full set of policies with a larger reduction. MAS has also moved toward risk-based pricing, so any discount sits on top of a premium that already reflects your individual risk.

Cove takes a different approach. It offers a discount of up to 10% when you hold two or more eligible policies, and it allows cross-category combinations, so pairings such as pet and car insurance can qualify. That flexibility makes Cove a practical option for younger Kiwis who may not yet own a home.

Even with these two insurers, the discount is only part of the picture. A bundle saving applied to a premium that is high to begin with can still cost more than a sharper standalone policy from a competitor. Always compare the total price across the market, not the size of the discount.

Why Did Insurers Stop Offering Multi-Policy Discounts?

Insurers removed multi-policy discounts for two main reasons: a shift to risk-based pricing, and regulatory pressure after a run of overcharging cases. On pricing, insurers have moved from flat discounts toward risk-based, or personalised, pricing. Rather than a blanket percentage, each policy is now priced on its own specific risk, such as your suburb's flood and earthquake exposure or your vehicle's theft rate.

On regulation, applying multi-policy discounts correctly across millions of policies proved difficult, and several insurers were penalised for getting it wrong. In October 2025, IAG was ordered to pay a record $19.5 million penalty after overcharging around 269,000 customers about $35 million, partly by failing to apply discounts. Tower was penalised $7 million in December 2025, and AA Insurance was penalised more than $6 million in 2024 for similar failures. For insurers, removing the discount became simpler than maintaining it.

Does Bundling Your Insurance Actually Save You Money?

In most cases, no. Bundling no longer saves Kiwis money, for two reasons. First, the discount that made bundling attractive has been removed by almost every insurer. Second, even when bundling was common, it was never a guarantee of the best price.

The bigger issue is that no single insurer is the cheapest for every type of cover. The company that gives you a sharp price on your car may be well above the market on your house, and the reverse is just as common. Bundling ties all of your policies to one insurer's pricing, so you are unlikely to land the best available price on each one.

It also helps to remember that a discount is not the same as a low price. A 10% discount applied to an expensive policy can still leave you paying more than a competitor charges with no discount at all. The figure that matters is the final dollar amount you pay, not the percentage taken off it.

How Much Can You Save by Comparing Insurance Providers?

Comparing insurers is now the most reliable way to cut your premiums, and the savings dwarf any bundle discount. Our latest Quashed Index data shows the average New Zealand household with car, house, and contents cover pays about $5,020 a year. Households that do not shop around pay an average loyalty tax of $1,560 a year across those three policies, simply for staying put.

The savings show up policy by policy. In Q1 2026, Kiwis who compared with the Quashed Market Scan found a cheaper option:

• Car insurance: cheaper 81% of the time, saving an average of $377 a year

• House insurance: cheaper 67% of the time, saving an average of $908 a year

• Contents insurance: cheaper 76% of the time, saving an average of $275 a year

These savings come from comparing the market, so they do not depend on a discount and will not disappear when an insurer removes its multi-policy discount.

Should You Bundle Your Insurance in 2026?

For most New Zealanders, no. The smarter move is to compare each policy on its own and choose the best value for each one. Here is a simple approach:

1. Check your renewal notice. Find the multi-policy discount line on your latest renewal. If it is gone, the saving you were relying on may no longer exist, so staying with one insurer out of habit could be costing you money.

2. Compare each policy separately. Look at car, house, and contents on their own, and weigh the price alongside the cover and excess.

3. Split your policies if it pays. There is no penalty for using different insurers for different cover, and it often works out cheaper.

Worried about the admin? You can bring every policy, whatever the insurer, into one place with Quashed and manage them from a single dashboard. That removes the only real advantage bundling ever had. The fastest way to see where you stand is a free Quashed Market Scan, which compares real-time quotes and policy benefits from a wide range of NZ insurers in about 90 seconds.

Related Reading

Insurance moves fast in New Zealand. These up-to-date Quashed guides will help you compare with confidence and keep your premiums under control:

• Average Car, House, and Contents Insurance Cost NZ 2026: Our latest Quashed Index data on what Kiwis really pay for car, house, and contents insurance, and how much you could save by comparing.

• The End of Multi-Policy Discounts in NZ? Why You Must Shop Around in 2026: A closer look at which insurers have dropped bundle discounts, why it happened, and what it means for your next renewal.

• Ultimate NZ Guide to Car Insurance (2026): Compare & Find the Best and Cheapest Cover: Everything you need to know to compare car insurance, from how premiums are calculated to proven ways to pay less.

• Ultimate NZ Guide to House Insurance (2026): Compare & Find the Best and Cheapest Cover: How to set your sum insured, understand your cover, and cut your house insurance premium without losing protection.

• Ultimate NZ Guide to Contents Insurance (2026): Compare & Find the Best and Cheapest Cover: How to work out how much cover you need, choose the right level of protection, and keep your contents insurance premium down.

Frequently Asked Questions

Do Multi-Policy Discounts Still Exist in New Zealand?

Mostly, no. As of 2026, State, AMI, AA Insurance, AMP, ANZ, Tower, and Trade Me Insurance have all removed their multi-policy discounts. Only a small number of providers, such as MAS and Cove, still offer them, and even then it pays to compare the total price rather than rely on the discount.

Why Did Insurers Stop Offering Multi-Policy Discounts?

Insurers point to a shift toward risk-based pricing, where each policy is priced on its own risk instead of a flat discount. Regulatory pressure also played a part. Several insurers, including IAG, Tower, and AA Insurance, were penalised for failing to apply discounts correctly, which made the discounts costly and risky to maintain.

Is It Cheaper to Bundle Insurance or Use Different Companies?

Using different companies is usually cheaper in 2026. No single insurer offers the best price on every type of cover, so comparing car, house, and contents separately lets you pick the sharpest price for each. With most bundle discounts now gone, there is little downside to splitting your policies.

How Much Can I Save by Comparing Car, House, and Contents Insurance?

Comparing all three could save the average household around $1,560 a year. That figure is the loyalty tax Kiwis pay for not shopping around, and it breaks down policy by policy: in Q1 2026, those who compared with the Quashed Market Scan saved an average of $377 on car insurance, $908 on house insurance, and $275 on contents insurance. These savings come from comparing the market, so they apply with or without a bundle.

Which Insurers Still Offer Multi-Policy Discounts in NZ?

MAS and Cove are the two insurers still offering multi-policy discounts in 2026. MAS has a Multi-Product Discount for holding any two eligible policies, and a higher-tier Goldshield discount for holding car, house, and contents cover together. Cove offers a discount of up to 10% when you hold two or more eligible policies, and it allows cross-category combinations such as pet and car. Both MAS and Cove can be compared alongside other insurers on Quashed, so always check the total price rather than relying on the discount.

Is It Worth Switching Insurance Companies in NZ?

For most people, yes. Switching is the most effective way to escape the loyalty tax, and Quashed data shows the savings can run to hundreds of dollars on a single policy. You can switch at any time, not only at renewal, and your previous insurer refunds any unused premium. Managing more than one insurer is simple too, because tools like the Quashed dashboard let you store and track every policy in one place.