If your latest car insurance renewal has you thinking, “Why am I paying this much?”—you’re not alone. Car insurance premiums in New Zealand have been steadily rising, making them harder to manage for many Kiwis. According to the latest Quashed Index, comprehensive car insurance costs jumped by 18.1% over the year ending September 2024. But why is car insurance so expensive? More importantly, what can you do about it? The good news is that with the right tools—like Quashed—you can take control of your premiums and make smarter decisions. Let’s break it down so you can better understand your costs and find ways to save.
What’s driving up your car insurance costs?
You might feel like your premiums are just a random number, but there’s a lot that goes into calculating them. Here’s why your car insurance might be getting more expensive:
Repair cost increases: Modern cars are packed with advanced tech, making repairs more expensive. Insurers adjust premiums to cover these rising costs. For ideas on managing rising insurance costs, check out our blog.
Extreme weather events: Floods, storms, and other natural disasters are becoming more frequent. Cyclone Gabrielle, for example, highlighted the growing risks. These events drive up weather-related claims, prompting insurers to increase prices.
Rising vehicle values: New and used car prices have surged due to inflation and supply chain disruptions. As the value of your car rises, so does the cost to insure it.
High claim rates: When accidents increase, insurers face higher payouts. For example, in high-density areas with higher accident rates—like Auckland—premiums are more likely to rise. To understand premium differences across locations and car models, check out our blog.
Inflation pressures: Inflation is driving up repair costs and labour rates, which, in turn, push up premiums. These economic pressures also increase operating costs for insurers, who then pass them on to consumers.
Location: Your location significantly impacts your premium. For example, Auckland residents pay among the highest premiums due to greater traffic densities, accident risks, and frequent extreme weather events.
Electric vehicles (EVs): If you’ve switched to an EV, you may find insurance costs are higher. Due to advanced parts, EVs can be more expensive to repair, which affects premiums.
Pro tip: If these factors are driving up your premiums, it’s worth using a tool like Quashed to compare policies and make adjustments that work for your budget.
How are your car insurance premiums calculated?
Curious about how your car insurance premium is calculated? Insurance companies look at a few key things, such as:
Your car: High-value or newer models cost more to insure due to advanced tech.
Your driving history: A clean record can save you money, while past accidents might raise your rates—even if the accident wasn’t your fault.
Your age: Drivers under 25 typically pay more due to higher accident risks. For instance, 18–24-year-olds often face higher premiums and excess rates.
How much you drive: High mileage increases accident risks, while low-mileage drivers may save.
Extras: Add-ons like rental car cover or roadside assistance add convenience but can raise your costs.
Understanding these factors helps you take control of your premiums. With Quashed, you can adjust key settings—like your excess or cover type—to explore how they impact your costs instantly.
The average Kiwi household can save
$2,023.79 a year by shopping their insurance!
Find out how your renewal prices stack up against other options out there!
How can Quashed help you save on car insurance?
Car insurance can feel like a maze, but Quashed makes it simple. Instead of jumping between countless insurer websites, you can compare prices and features side by side—all in real-time. Here are the key factors Quashed helps you adjust to maximise your savings:
Sum insured: Adjust the amount your car is covered for and instantly see how it impacts your premium. Lowering it can save you money, but make sure you leave enough cover for peace of mind.
Excess: Want lower monthly premiums? Raise your excess—the amount you’d pay if you make a claim—and instantly see the savings add up.
Type of cover: Whether you need comprehensive, third-party only, or third-party, fire, and theft, Quashed shows what’s included in each option and how it affects your premium.
With Quashed, comparing policies is straightforward and hassle-free. Let’s see how a small tweak—like adjusting your excess—can lead to big savings.
Example: see how tweaking your excess saves you money
Small adjustments can make a big difference to your car insurance premium. To show you how, here’s an example using a Toyota Aqua:
Excess ($) | Average yearly car insurance cost ($) | Saving from a higher excess ($) |
|---|---|---|
$100 | $2,639 | |
$500 | $2,512 | $127 |
$750 | $2,288 | $351 |
$1,500 | $2,018 | $621 |
Source: Quashed, assumes a sum insured of $15,000, Auckland location.
By raising your excess from $100 to $1,500, you could save $621 per year on your premium. That’s a significant saving for just one small adjustment.
Try this for yourself: With Quashed, you can adjust settings like your excess in seconds and see the impact on your premium. Whether you want to save upfront or reduce long-term costs, Quashed puts you in control.
Shop smarter with Quashed
Insurance just got way easier with Quashed. Compare, shop and track all your insurance in one place.
Be the boss of your car insurance
Car insurance premiums might be rising, but you’re not without options.
Small tweaks, like adjusting your excess or tailoring your coverage, can lead to big savings—just like the example above shows.
Quashed simplifies the process, letting you compare policies and instantly see how changes impact your premium. It’s fast, easy, and puts you in control of your costs.
FAQs
Why are car insurance premiums rising in New Zealand?
Car insurance premiums are increasing due to several factors, including inflation, higher repair costs for modern vehicles, more frequent extreme weather events like Cyclone Gabrielle, and rising car values. Insurers also adjust premiums based on claim rates and location risks, such as Auckland’s higher traffic density.
How can Quashed help me save on car insurance?
Quashed simplifies the process by letting you compare real-time quotes from multiple insurers side by side. You can adjust factors like your excess, coverage type, and sum insured to instantly see how these changes impact your premium. This makes it easy to find the best deal for your budget and needs.
Should I shop around when my car insurance policy is up for renewal?
Yes! Renewal time is often when premiums increase, even if your circumstances haven’t changed. Comparing your current policy against new quotes using Quashed ensures you’re not overpaying and helps you find better value.
What information do I need to get car insurance quotes on Quashed?
To get a quote, you’ll need details like your car’s make, model, and year, your driving history, and how often you drive. For more tips and guidance, check out our blog on car insurance quotes.
