MoneyHub Reveals Average Cost Of Car, House, And Contents Insurance Data Across New Zealand

MoneyHub's Latest Report Sheds Light on Rising Insurance Costs in New Zealand and Offers Strategies to Help Kiwis Save

MoneyHub’s comprehensive new report reveals the latest data on insurance costs in New Zealand for car, house, and contents cover, highlighting notable variations by region and identifying factors driving up premiums in 2024. With premiums having risen in recent years, New Zealanders are feeling the strain of increased insurance costs, largely driven by inflation, heightened weather risks, and escalating repair and replacement costs.

In an era of economic uncertainty, MoneyHub’s annual report aims to empower New Zealanders with the insights and tools needed to navigate and reduce insurance costs. Covering the latest trends and outlining practical ways to secure cost-effective coverage, the report is designed to provide transparency and guidance for anyone looking to protect their property without breaking the bank.

Key Insights from the Report:

• Premium Increases Across the Board: The report reveals significant year-on-year increases in insurance costs, with the most substantial hikes seen in house and contents insurance. Factors such as regional crime rates, exposure to natural disasters, and the cost of repairs have driven these premiums up, with the impacts felt most acutely in high-risk areas.
• Regional Variations in Cost: Our findings illustrate substantial differences in insurance premiums across regions. For example, car insurance costs in Auckland’s Mangere are notably higher than those in Wellington, while home insurance in Wellington can be double that of Christchurch due to earthquake and flood risks.
• The Importance of Regular Comparison and Switching: Our data highlights that premiums can vary by hundreds of dollars between providers for the same type of coverage. By comparing quotes regularly and switching insurers when advantageous, New Zealanders can potentially save significantly on their annual insurance costs.

Christopher Walsh on How Kiwis Can Combat Rising Insurance Costs

“Insurance is one of those areas where loyalty can cost you,” says Christopher Walsh, Founder of MoneyHub. “Our findings show that sticking with the same insurer year after year might not be in your best financial interest. Many insurers offer attractive rates to new customers, meaning existing clients may find themselves overpaying for coverage that could be cheaper elsewhere.”

Walsh continues, “The increasing frequency of natural disasters and rising repair costs mean that annual premium increases are likely here to stay. However, by reviewing their policies, considering higher excesses, and seeking out better deals, New Zealanders can take back some control over their insurance spending.”

Practical Tips for Managing Insurance Costs

1. Shop Around: “Every year, compare insurance providers to ensure you’re getting the best deal,” says Walsh. “Our research consistently shows that premiums can differ by hundreds of dollars for similar coverage between insurers.”

2. Adjust Excess Levels: Increasing your excess can significantly lower your premium. “Higher excesses shift some of the financial burden in the event of a claim but can bring noticeable savings on annual costs,” Walsh advises.

3. Invest in Home Security for Contents Coverage: For contents insurance, adding security features like alarms and cameras can reduce premiums by showing insurers you’re proactively mitigating risk.

About the Report

MoneyHub’s 2024 insurance report is part of an ongoing effort to provide transparent, accurate, and accessible information on insurance costs for Kiwis. The report covers regional insurance trends for car, house, and contents policies, frequently asked questions, and practical steps for reducing insurance costs. With insurance costs expected to rise further, MoneyHub is committed to providing annual updates to keep New Zealanders informed and financially prepared.

About MoneyHub

MoneyHub is a leading New Zealand financial information platform, dedicated to helping Kiwis make informed decisions. From car insurance comparisons to investment insights, MoneyHub delivers unbiased guidance to improve the financial wellbeing of everyday New Zealanders.

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