Insurers That Still Offer Multi-Policy Discounts & Those Discontinued - NZ 2026
Over the past two years, most of New Zealand's major insurers have quietly pulled their multi-policy discounts (MPDs), the long-standing reward for keeping several policies under one roof. State, AMI, AA Insurance, AMP and ANZ led the exodus through 2024 and 2025. As of early 2026, Tower has now joined them, ending its MPD programme for renewals from 1 January 2026 and new policies from 28 January 2026.
For many Kiwi households, that means the "bundle and save" playbook no longer applies. If your policies are still with one insurer purely out of habit or past discount, you could now be quietly overpaying. Read on for what's changed, why it happened, who's left offering MPDs, and how to keep your premiums in check without the bundle.
If you've been loyal to one insurer for the bundle discount, the maths has shifted. In Q1 2026, Kiwis who ran a free Quashed Market Scan found a cheaper car policy 81% of the time (saving $377 a year on average), a cheaper house policy 67% of the time ($908 a year), and a cheaper contents policy 76% of the time ($275 a year). Run a scan in a couple of minutes and see exactly where your premiums sit against the rest of the market.
What is an insurance multi-policy discount?
A multi-policy discount is a financial incentive offered by an insurance company to customers who purchase multiple types of cover from the same provider. Commonly referred to as "bundling", this discount rewarded policyholders for consolidating their insurance needs, such as home, contents, car or landlord cover, under one insurer.
How multi-policy discounts worked
Typically, when a customer held two or more eligible policies with an insurer, the insurer applied a percentage-based reduction to the premiums. The discount was usually applied to the base premium and excluded levies or additional charges. Insurers also generally required policies to meet minimum premium thresholds and specific eligibility criteria, such as ownership structures (e.g., policies held in personal names or trusts).
As examples, Tower Insurance previously offered a 10% discount for two policies and 20% for three or more policies. AMI previously provided around 5% for two policies and 10% to 13% for three policies.
What's changing with multi-policy discounts in NZ
The table below summarises when each major insurer discontinued their multi-policy discounts, for both new policies and renewals.
Insurer | MPD stopped for new policies | MPD stopped for renewals |
State | 10 March 2024 (home, contents, landlord); 27 May 2024 (car, motorbike) | After 27 May 2024 for all policies |
AMI | 15 August 2024 (home, contents, landlord); 26 October 2024 (car, motorbike) | After 26 October 2024 for all policies |
AA Insurance | 28 January 2025 | After 28 January 2025 |
AMP | 1 May 2025 | After 1 May 2025 |
ANZ | 1 May 2025 | After 1 May 2025 |
Tower | 28 January 2026 | 1 January 2026 (plus 2 December 2025 for policies with price-changing updates) |
Sources: State, AMI, AA Insurance, AMP, ANZ, Tower.
Why are insurers removing multi-policy discounts?
Simplification and risk-based pricing
Several insurers have cited simplification and personalisation as the primary reasons for removing multi-policy discounts. AMI and State (both brands of IAG) stated that instead of offering discounts, their personalised pricing data means customers are getting a "fair price upfront". AA Insurance told Consumer NZ the changes were about "simplifying" policy options.
The broader market trend is a shift towards risk-based pricing, where premiums are increasingly tailored to the specific risks of each property, driver or asset rather than rewarded with a flat discount for holding multiple policies. For customers in lower-risk situations, this can actually mean lower premiums than the old bundled rate; for higher-risk customers, it can mean the opposite.
Court actions and regulatory pressure
Alongside the stated rationale, legal action against insurers for failing to properly apply discounts has been a major catalyst for change. The Financial Markets Authority (FMA) has penalised multiple major insurers over the past two years:
AA Insurance was ordered to pay $6.175 million in October 2024 for failing to apply multi-policy and membership discounts, as well as guaranteed no-claims bonuses.
IAG was penalised a record $19.5 million in October 2025 for historical failures that overcharged approximately 269,000 customers around $35 million across its State, AMI and NZI brands and policies sold through major banks.
Tower was ordered to pay $7 million in December 2025 for misleading customers in invoices about its MPD offer since September 2016. The overcharging affected about 61,000 customers (around 90,200 policies, or 11% of Tower's total customer base), and Tower had already repaid more than $11.7 million in remediation.
Announcing the end of Tower's multi-policy discount, Tower CEO Paul Johnston acknowledged that despite significant system upgrades, "a risk remains that some customers might not receive the correct discount. That’s not good enough, so we have made the decision now."
What does this mean for consumers?
If you have multiple policies with any of the insurers in the table above, you've either already lost your multi-policy discount or will lose it at your next renewal. For most Kiwi households, this is a strong nudge to stop auto-renewing and start shopping around, because pricing across insurers can vary significantly.
Splitting your policies across different insurers is no longer penalised by the major players, so you can cherry-pick the sharpest-priced policy for each asset. And if you're worried about the admin of juggling multiple providers, you can sign up to Quashed to compare, shop and track all your policies in one place, even when they sit with different insurers. Use the Quashed Market Scan to compare multiple insurers side by side in minutes.
Which NZ insurers still offer multi-policy discounts in 2026?
While the major IAG brands, AA Insurance, Tower, AMP and ANZ have all removed their MPDs, a couple of providers on the Quashed platform still offer bundling benefits in 2026:
MAS continues to offer a multi-policy discount to its members across eligible policy types.
Cove offers a multi-policy discount of up to 10% when you hold two or more eligible policies (such as multiple cars, or car and pet insurance).
Both MAS and Cove are available on Quashed, so you can compare their quotes side by side with other NZ insurers in the same scan. Even where a discount still exists, it's no guarantee of the best deal. What matters is the total dollar amount you pay, not the discount percentage. A 10% discount on a more expensive base premium can still cost you more than a cheaper competitor's policy with no discount at all. Always compare the final price.
Does a multi-policy discount actually save you money?
In our earlier research, we found that NZ consumers were often better off shopping policies across different insurers than keeping everything with one provider. This allowed customers to pick the sharpest-priced policy for each asset and the one with the policy benefits that suited them best. Looking at premiums alone, this tended to work out cheaper than bundling everything with a single insurer.
Our latest Q1 2026 data reinforces this finding. According to our Average Cost of Car, House, and Contents Insurance NZ 2026 analysis, the average Kiwi household pays a "loyalty tax" of around $1,560 per year by not shopping their car, house and contents insurance. That's the average gap between staying with an existing insurer and finding the best available rates on the Quashed Market Scan.
In Q1 2026, Kiwis who ran a Quashed Market Scan found:
A cheaper comprehensive car insurance policy 81% of the time, with average savings of $377 per year.
A cheaper house insurance policy 67% of the time, with average savings of $908 per year.
A cheaper contents insurance policy 76% of the time, with average savings of $275 per year.
The takeaway: the savings from actively comparing insurers often outweigh what any historical bundle discount would have delivered.
How to save money on insurance without multi-policy discounts
There are several effective ways to keep insurance premiums in check now that most bundling discounts are gone.
1. Shop and compare your insurance
Find out if you're paying a "loyalty tax". Insurance companies price very differently, and prices shift from year to year. Sign up for free to Quashed and compare prices and policy benefits across a wide range of NZ insurers, including AMI, AMP, Autosure, Cove, Initio, MAS, Provident, Tower, AA, State, Assurant and more, in just a couple of minutes.
2. Check your sum insured
Are you over-insuring your car, house or contents? It's a good time to take stock. Trade Me's Value My Car tool gives you a quick estimate of your vehicle's current market value, handy for setting an accurate sum insured, and the Cordell Sum Sure calculator can help you estimate rebuild costs for your property. Quashed also has a simple contents calculator built into its contents insurance comparison tool.
3. Pick a higher excess
If you default to $250 on your contents policy, $500 on your car policy and $1,000 on your house policy, it may be worth reconsidering. Taking a higher excess (more of the risk yourself) can save between 5% and 15% on premiums. Quashed lets you easily adjust excess levels and compare how the premium changes across different providers.
The bottom line
The widespread removal of multi-policy discounts represents a significant shift in New Zealand's insurance market. While insurers have cited simplification and personalised pricing as the reasons, technical challenges and major regulatory action have clearly played a central role. For Kiwi households, this means auto-renewing with the same insurer year after year is a riskier strategy than ever, and comparing options at each renewal has become the most reliable way to manage costs.
Ready to compare insurance? Experience Quashed for yourself today
Take the guesswork out of comparing insurance with Quashed. It's fast, free and designed for Kiwi consumers who want real options without the hassle. Run a free Market Scan now and see how your premiums compare.
Further reading
Average Cost of Car, House, and Contents Insurance NZ 2026: See the latest Q1 2026 Quashed Index on what Kiwis are paying for insurance.
Tower Insurance 2026: The Quashed Ultimate Kiwi Review: A full breakdown of Tower's policies, cover tiers and excess rules in 2026.
MAS Insurance 2026 Review: The Quashed breakdown of one of the few NZ insurers still offering multi-policy discounts.
Cove Insurance NZ Review 2026: Costs, benefits and limitations for the other NZ insurer still bundling in 2026.
Assurant Car Insurance NZ Review 2026: Often among the cheapest car insurance providers on the Quashed Market Scan.
Why Is My House Insurance So Expensive? 2026 NZ Premium Hike Guide: What's driving house premiums up and what you can do about it.
Storm Damage Insurance NZ 2026: What car, house and contents policies actually cover for storm damage, and how to claim.
NZ Car Insurance 2026: Comprehensive vs Third Party: Work out which cover level actually fits your car, budget and risk tolerance.
Insurance Multi-Policy Discount FAQs
What is a multi-policy discount?
A multi-policy discount is a reduction in insurance premiums offered to customers who hold multiple policies (e.g., home, contents, car) with the same insurer. Discounts typically ranged from 5% to 20%, depending on the number of policies bundled.
Which NZ insurers have removed multi-policy discounts?
As of 2026, the major insurers that have phased out multi-policy discounts are State, AMI, AA Insurance, AMP, ANZ and Tower.
Do any NZ insurers still offer multi-policy discounts?
Yes. MAS continues to offer multi-policy discounts to its members, and Cove offers a discount of up to 10% when you hold two or more eligible policies. Both MAS and Cove are available on Quashed, so you can compare their quotes alongside other NZ insurers in a single scan. These are exceptions rather than the rule in 2026, so it's still worth comparing the total price, not just the discount.
When did multi-policy discounts end?
The end date varies by insurer. State and AMI phased out discounts between March 2024 and October 2024. AA Insurance ended its discount on 28 January 2025. AMP and ANZ ended theirs on 1 May 2025. Tower ended its MPD for renewals on 1 January 2026 and for new policies on 28 January 2026. Refer to the table above for specific dates, and check directly with your insurer if you have any questions.
Why are insurers removing these discounts?
The common reasons cited by insurers and industry commentary include the move toward risk-based, personalised pricing, simplification of policy structures, and the technical complexity of reliably applying discounts. Major FMA enforcement actions against AA Insurance ($6.175m in 2024), IAG ($19.5m in 2025) and Tower ($7m in 2025) have underlined the regulatory risk of getting discount calculations wrong.
Should I split my policies across different insurers now?
Possibly yes. With most major insurers no longer penalising split policies, you can cherry-pick the sharpest-priced policy for each asset. In Q1 2026, Quashed users found a cheaper comprehensive car policy 81% of the time, a cheaper house policy 67% of the time, and a cheaper contents policy 76% of the time. And if managing multiple providers sounds like extra admin, Quashed lets you compare, shop and track all your policies in one place, even when they're from different insurers. Running a free Quashed Market Scan is the quickest way to see whether splitting would save you money.
