Overspending on Contents Insurance? Leave that Thought Quashed With Our 2025 Guide.
Let’s be honest: nobody wakes up excited to pay their insurance bill. With the cost of living in Aotearoa squeezing budgets—from the supermarket checkout to the petrol pump—insurance premiums are another line item that seems to only go one way: up.
Recent data shows that the average Kiwi household is now spending significantly more on insurance than they were just two years ago. But while you can’t control the Natural Hazards Commission (NHC) levies or global reinsurance costs, you can control how you buy your cover.
At Quashed, we’ve crunched the numbers. Here are the six effective, research-backed ways to lower your contents insurance premium without leaving yourself exposed.
1. The Golden Rule: Stop Paying the "Loyalty Tax"
The single biggest mistake Kiwis make is auto-renewing their policy. Insurance companies often rely on apathy; if you don't check the market, you might miss out on competitive rates offered to new customers.
We found that prices for the exact same set of belongings can vary by hundreds of dollars between providers.
The Fix: Don’t spend hours filling out forms on ten different websites.
The Tool: Use the Quashed Market Scan to compare your current policy against the market in minutes.
Real Data: Our latest data suggests Kiwis can save an average of $300+ per year simply by switching to a provider that favours their specific risk profile (e.g., your location, age, and claim history).
2. Pull the "Excess" Lever
Your excess is the amount you agree to pay towards a claim before the insurer pays the rest. Most standard policies default to a low excess (e.g., $250 or $400).
As detailed in our How to Lower Your Contents Insurance Costs, raising your excess is a guaranteed way to slash your ongoing costs if you are financially resilient enough to cover a minor mishap yourself.
Real world breakdown:
Scenario: You have $50,000 of contents cover.
Standard: $250 excess = Higher Premium.
Smart Move: Increase excess to $1,000.
Result: You could see your premium drop by up to 30%.
3. The "Monthly Payment" Trap
Did you know some insurers charge you extra for the convenience of paying monthly or fortnightly? Paying in smaller blocks could add to your total annual bill depending on the provider. Some insurers call this an "administration fee," while others simply apply a higher rate.
Action: Check to see if your provider charges a premium for monthly or fortnightly payments. If it does, consider switching to yearly payments. If not, monthly or fortnightly payments can free up cash flow.
Learn More: Read our Complete Guide to Contents Insurance for more hidden policy costs to watch out for.
4. Right-Size Your "Sum Insured"
Your Sum Insured is the maximum amount the insurer will pay if you lose everything (e.g., in a total house fire).
The Problem: Many people guess this number. If you guess too high (e.g., insuring $100,000 for a flat that only contains $40,000 of stuff), you are paying for cover you can never claim.
The Solution: Use acontents valuation calculator or appraise your belongings. Be realistic about the replacement value of your clothes, appliances, and furniture.
Warning: Do not under-insure to save money. If you claim for a total loss and your sum insured is too low, the insurer will cap the payout at that limit, leaving you unable to replace your essentials.
5. Review Your "Specified Items"
Do you have a "specified item" listed on your policy? This is usually for high-value items like jewellery, cameras, or e-bikes that exceed the standard policy limit (e.g., items worth over $2,500).
Check this list every year.
Did you sell that engagement ring?
Is that "high-end" laptop from 2019 now worth less than $1,500?
The Save: If an item’s value has depreciated below the policy's standard limit, remove it as a specified item. For more details on what needs listing, check our guide on how to insure valuable items.
6. The "Bundle" Myth: Check the Final Price, Not the Discount
Historically, NZ insurers offered a 10-15% Multi-Policy Discount (MPD) if you bundled car and contents. However, this is changing. Major providers like AMI, State, and AA Insurance are moving away from fixed-percentage discounts in 2024/2025, opting instead for "risk-based pricing" or "net-rated" premiums.
The Trap: You might stay loyal to one insurer expecting a "bundle discount" that no longer exists or is "baked in" invisibly.
The Strategy: Ignore the promise of a "loyalty discount." Compare the total dollar amount of separate policies vs. a bundle using Quashed’s Market Scan. Often, two specialized providers (e.g., a dedicated car insurer + a dedicated contents insurer) can beat a "bundled" price from a single provider.
Frequently Asked Questions
Does my credit score affect my contents insurance premium in NZ?
Unlike in other countries, New Zealand insurers do not typically use your credit score to determine your premium. They focus on your claims history, location, and the security of your home.
What about the Natural Hazards Commission (NHC) levy?
As of late 2024, the government’s NHC levy (formerly EQC levy) is a fixed rate included in fire insurance policies. You cannot "opt-out" of this, as it provides vital cover for natural disasters (earthquakes, landslides). However, saving on the insurer’s portion of the premium using the tips above is fully within your control.
Ready to stop overpaying?
You don't need to call ten different call centres to find a better deal!
Scan the Market Now and see how much you could save on your contents insurance in under 3 minutes.
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Disclaimer: This article provides general information only and does not constitute financial advice. Policy terms, benefits, and savings vary by provider. Always read the specific policy wording before making a purchase decision.
