As we enter into 2024, New Zealanders all across the country are facing a significant rise in insurance costs from the aftermath of the most severe weather events in 2023 — the worst in decades. Nationally, car insurance has soared by a staggering 30%, while house and contents insurance aren’t far behind, experiencing hikes of 13% and 12% respectively. This surge isn't uniform, with insurance companies adjusting prices across different regions differently to cover claim losses while rebalancing their risk exposure. Join us as we look at the average insurance premiums for car, house and contents insurance and how they vary across the major regions in the nation.
Average cost of car insurance premium
Car insurance costs in New Zealand has seen a huge increase compared to last year. In the most recent quarter, yearly car insurance premium hit an average of $1,190 (Q3 2023) nationally, jumping by 30% from last year's $914. The increase has impacted Kiwis in different cities differently. The average cost of car insurance in Auckland is $1,399 a year or $117 a month. For Wellington, car insurance cost an average of $1,153 a year and $96 a month, and in Canterbury $1,029 is the average yearly premium or $86 a month consumers would pay for car insurance . These figures represents the cost of comprehensive car insurance.
To keep insurance premiums affordable, Wellingtonians are leading the way by choosing higher excess ($767) for their car insurance compared to those in Auckland ($575) and Canterbury ($516). This suggests a shift in how Kiwis across the country are handling rising insurance premiums in different regions.
Average Car Insurance Premium (Q3 2023)
Yearly | Monthly | |
|---|---|---|
National | $1,190 | $99.16 |
Auckland | $1,399 | $116.58 |
Canterbury | $1,029 | $85.75 |
Wellington | $1,153 | $96.08 |
How much you can save on premiums by comparing car insurance
Alongside the notable increase in car insurance premiums is the increasing difference in car insurance premiums being quoted by insurance companies. Our latest Market Scan data shows that the average difference in premiums being quoted for car insurance has gone up from $247 in 2022 to $596 in 2023. This means that the average consumer shopping for car insurance in New Zealand could be saving much more on their premiums compared to last year. This growing difference comes down to a number of factors including how insurers have been impacted differently from the claim losses they have experienced this year.
Average Car Insurance Premium Difference Across Insurers in 2023
Yearly | Monthly | |
|---|---|---|
Q1 | $408 | $34.00 |
Q2 | $510 | $42.50 |
Q3 | $880 | $73.33 |
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Average cost of house insurance premium
Now, let's talk house insurance. House insurance costs in New Zealand have unsurprisingly gone up, jumping from $2,064 a year to $2,353 a year in 2023, a 13% increase year on year. Signs point to further increases in 2024. Breaking it down by city, Auckland's average yearly house insurance premium is $1,923 or $160 a month, Wellington's average annual cost of house insurance is a hefty $3,913 (more than double Auckland’s) or $326 a month, and Canterbury sits in the middle at $2,601 annually or $217 a month. Hold onto your hats – in the Wellington region, some folks have seen their insurance bills skyrocket from $3,000 to over $9,000 in just a year.
Facing these price hikes, Wellington residents are getting savvy, tweaking their excess levels to deal with the soaring prices and to keep their homes insured. It remains to be seen if Aucklanders and Cantabrians will follow suit with increasing their excess as house insurance premiums continues to increase in 2024.
Average House Insurance Premium (Q3 2023)
Yearly | Monthly | |
|---|---|---|
National | $2,353 | $196.08 |
Auckland | $1,923 | $160.25 |
Canterbury | $2,601 | $216.75 |
Wellington | $3,913 | $326.08 |
How much you can save on premiums by comparing house insurance
Similar to car insurance, there is a growing gap when it comes to how much insurers are charging for house insurance up and down the country. A year ago, shopping your house insurance via Market Scan would have likely found you savings of $415 on average. This year, that price difference and potential savings has gone up to $932. Insurance companies are quoting vastly different premiums for the same exact property - it is staggering and difficult to explain even after accounting for differences in the benefits and level of coverage between policies. But what is true is that if you own a home in New Zealand, it is fair to say that comparing and shopping for your house insurance has never been more important and rewarding for your budget.
Average House Insurance Premium Difference Across Insurers in 2023
Yearly | Monthly | |
|---|---|---|
Q1 | $831 | $69.25 |
Q2 | $853 | $71.08 |
Q3 | $923 | $76.92 |
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Average cost of contents insurance premium
Let's move onto the cost of insuring your valuables. Contents insurance has overall increased by 12% from last year. On average, contents insurance now costs $711 a year or $64 per month across the country. Breaking it down by the key regions in New Zealand, in Auckland, it's $714 yearly or $63 a month, in Wellington, it's a bit higher at $905 a year or $75 a month, and in Canterbury, it's around $760 a year or $63 a month. So, whether you're in the city of sails, the windy capital, or the garden city, the cost of keeping your belongings covered has all been hit with an increase but Wellington once again takes top spot for the biggest increase in premiums this year.
Average Contents Insurance Premium (Q3 2023)
Yearly | Monthly | |
|---|---|---|
National | $771 | $64.25 |
Auckland | $714 | $59.50 |
Canterbury | $760 | $63.30 |
Wellington | $905 | $75.42 |
How much you can save on premiums by comparing contents insurance
Contents insurance is no different when it comes to varying premiums across insurers in New Zealand. From our latest Market Scan data, we have observed that the average difference in premiums quoted by insurers can be substantial. Based on data from thousands of quotes in the most recent quarter (Q3 2023), we found that there is a $409 price difference on average between the cheapest and the most expensive contents insurance quotes. There we’d encourage homeowners and renters alike to shop and compare your contents insurance. Savings hundreds of dollars on your contents policy will quickly add up over the years to thousands of dollars back in your pocket.
Average Contents Insurance Premium Difference Across Insurers in 2023
Yearly | Monthly | |
|---|---|---|
Q1 | $341 | $28.42 |
Q2 | $450 | $37.50 |
Q3 | $434 | $36.17 |
How to save on your insurance premiums in New Zealand
Saving on insurance is a savvy move, especially as premiums increase substantially and starts to impact on household budgets. Here are top three tips for you:
Make shopping and comparing your insurance a regular gig. Prices are changing fast. So don't get caught in the "lazy tax" – compare the costs of insurance and benefits regularly.
Check that you're not over-insuring (or under-insuring) by reviewing your sum insured amount. Online valuation calculators are your secret weapon to get it just right for your house, car, and contents.
If you've got some cash tucked away, consider adjusting your excess. It's like creating your own insurance safety net – a small increase excess could save you big bucks in premiums.
Lastly, use Market Scan to make shopping and comparing insurance quick and easy for you. Market Scan has been touted as NZ’s best tool to help Kiwis compare insurance prices and policies fast. Saving you time and money. Enter your information once and get multiple quotes back online in a couple of minutes. Kiwis can save on average $1,150+ a year on insurance by shopping and comparing policies.
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