Are you looking for car insurance that won’t break the bank? Or maybe you’re after coverage that actually protects your wheels? A lot of Kiwi drivers reckon the cheapest policy is the way to go, but when it comes to car insurance, "cheap as chips" doesn’t always mean "sweet as." Scrimping on coverage might save you a few dollars upfront, but it could leave you wide open—and end up costing you more than a few bucks in the long run. So, how do you find the right balance between affordable premiums and proper protection? Let’s take a closer look.
The current state of car insurance in New Zealand
According to the latest Quashed Index for Q3 2024, the average comprehensive car insurance premium in New Zealand has shot up to $1,346—a whopping 18.1% increase over the past year. Rising costs mean it’s more crucial than ever for Kiwis to shop smart and compare their options.
Location | Average yearly car insurance cost ($) | Difference to the national average $ |
National | $1,346 | - |
Auckland | $1,579 | +$233 |
Canterbury | $1,254 | -$92 |
Wellington | $1,193 | -$153 |
Auckland’s higher premiums are driven by increased traffic congestion and higher vehicle theft rates. Meanwhile, Canterbury and Wellington benefit from lower theft rates and reduced risks, keeping their premiums below the national average. The 18.1% nationwide increase reflects broader pressures like rising repair costs, inflation, and global reinsurance trends.
Age matters
Your age also plays a significant role in how much you’ll pay for car insurance. Check out these average premiums by age group:
If you’re a young driver, you might be feeling the pinch more than most. The Quashed Index shows that general insurance costs (including car insurance) for Kiwis aged 25-30 have skyrocketed by 58% over the past two years, rising from $2,960 in 2022 to $4,675 in Q3 2024.
Younger drivers aged 18-24 face higher premiums due to increased risk factors like inexperience and higher accident rates. For middle-aged drivers in their 30s and 40s, premiums tend to stabilise as driving records improve and accident risks decrease. Older drivers, particularly those aged 51-60, generally enjoy lower premiums, reflecting safer driving habits and reduced risk profiles.
Even though younger drivers often pay more, comparing your options on Quashed can help you find a policy that works for your budget and needs.
Comprehensive v third-party insurance: what's best for Kiwis?
When it comes to car insurance in New Zealand, you've got options. Let's break down the difference between comprehensive and third-party cover.
Comprehensive cover
Comprehensive insurance is the full monty. It covers damage to your own car, as well as damage you might cause to someone else's vehicle or property. As we've seen, the average comprehensive car insurance premium in New Zealand is now $1,346 per year.
Third-party cover
Third-party insurance covers damage you cause to other people's property but not your own car.
Which one should you choose?
The decision between comprehensive and third-party insurance depends on several factors:
Value of your car: If your car is worth less than $4,000, third-party might be more cost-effective.
Your financial situation: Can you afford to replace your car if it's written off?
Your risk tolerance: Are you comfortable with the possibility of having to pay for repairs out of pocket?
For many Kiwis, the extra cost of comprehensive cover provides peace of mind that’s worth the investment. However, if you’re driving an older vehicle and are comfortable with the risks, third-party could be a way to save some cash.
The average Kiwi household can save
$2,023.79 a year by shopping their insurance!
Find out how your renewal prices stack up against other options out there!
Tips for finding the right car insurance
So, how do you find the right car insurance in New Zealand? Here are a few tips:
Shop around: Don't just go with the first insurer you find. Use Quashed to compare quotes from multiple providers to find the best value.
Assess your needs: Think about your vehicle's value, your daily commute, and your ability to cover unexpected repair costs to help determine the right level of coverage.
Read the fine print: Understand exactly what is and isn't covered in the policy before you commit.
Remember, the goal isn’t just to find the cheapest option but to secure car insurance that gives you the greatest protection at a fair price.
Other important considerations for Kiwi drivers
In addition to these tips, there are a few other important considerations when choosing car insurance in New Zealand:
Coverage for electric vehicles: Electric vehicles often have different insurance requirements compared to traditional gas-powered cars, so it’s worth checking if your policy covers everything you need.
Insuring specialty vehicles: If you own a unique model, like the Toyota Aqua, you might need to look into specialist insurers to ensure the right coverage.
Comparing insurance costs by vehicle: The cost of car insurance can vary a lot depending on your car’s make and model. Comparing options could save you money.
Make the right call for your car
Finding car insurance that ticks all the boxes doesn’t have to be a hassle. The right plan protects you on the road while keeping costs in check—giving you confidence every time you drive.
Get sorted with Quashed. Our easy-to-use comparison tool helps you find car insurance tailored to your needs and budget. Take control, compare your options now, and hit the road knowing you’ve made the smart choice.
Shop smarter with Quashed
Insurance just got way easier with Quashed. Compare, shop and track all your insurance in one place.
FAQs
What's the average cost of car insurance in New Zealand?
Prices typically range from $900 to $1,579 annually, with the average comprehensive car insurance premium sitting around $1,346 per year as of Q3 2024. Wondering why premiums are on the rise? Check out our blog on Why Is Car Insurance So Expensive? to learn more.
How do I find the cheapest car insurance in New Zealand?
Compare quotes from multiple providers using Quashed, consider increasing your excess, and look into bundling policies. Just remember—the cheapest option isn’t always the best fit for your needs.
What types of car insurance are available in NZ?
You can choose from comprehensive, third-party, or third-party fire and theft coverage. Specialised options like classic car insurance or business vehicle insurance are also available, depending on your needs.
Does age affect my car insurance rates?
Yes, drivers under 25 often face higher premiums due to increased risk. But don’t worry—safe driving and completing a defensive driving course can help lower your premiums over time.
What factors influence my car insurance premium?
Several factors influence your premium, including your age, driving history, vehicle type, location, and the level of coverage you choose. It’s all about the specifics—your driving habits and car can make a big difference.
Should I shop around for car insurance when my renewal is due?
Yes, absolutely! Insurance companies often raise premiums during renewals, even if your circumstances haven’t changed. Comparing policies from different providers allows you to find better rates and more suitable coverage. For more on how to handle renewals, check out our blog.
What information do I need to get accurate car insurance quotes?
To get accurate quotes, you'll need some basic details about your car, such as the make, model, year, and vehicle condition. You’ll also need to provide your driving history, including any accidents or claims. Finally, how often you drive and your preferred coverage level will affect the price. For more useful tips, read our blog on Car Insurance Quotes.
How does Quashed compare to other comparison tools?
When comparing car insurance options, Quashed offers real-time, tailored quotes from a wide variety of insurers. This allows you to quickly view a side-by-side comparison of premiums and coverage, helping you make the best choice for your needs. To learn more about what sets Quashed apart, check out our blog.
