Everyone loves a good deal, especially in today’s cost-of-living crisis, where every dollar counts. If you’re the type to shop around before making a purchase, why not do the same with your insurance? The truth is, insurance can be expensive, and prices are on the rise—as we’ve discussed in a post about the average costs of insurance.
But here's the good news: getting a great deal on insurance doesn’t have to be difficult, thanks to Quashed! We’ve put together this handy guide to help you save money on your insurance without sacrificing your cover, so you can stay protected without breaking the bank.
So, how much money can you save on your insurance?
Our latest data highlights the significant differences between the lowest and highest yearly premiums, showing that savvy consumers can potentially save by making informed decisions. 2024 Market Scan Data: January to September 2024
Insurance Type | Lowest Yearly Premium (average) ($) | Highest Yearly Premium (average) ($) | Difference ($) |
|---|---|---|---|
House insurance | $2,291 | $2,728 | $437 |
Contents insurance | $650 | $845 | $195 |
Car insurance: Comprehensive | $1,050 | $1,323 | $273 |
Car insurance: Third-party | $381 | $511 | $130 |
Source: Quashed One of the best ways to discover potential savings is by using Market Scan from Quashed to compare your current policy with others available in the market and switch to the most cost-effective insurer.
Another approach is to tailor your cover to suit your financial needs. For example, choosing third-party car insurance instead of comprehensive cover can significantly lower your premiums.
As we can see from the data in the table, the difference between the highest average premium for comprehensive car insurance and third-party car insurance is $812.
Beware of a loyalty tax, shop around
You may have heard the term "loyalty tax" before. This refers to the discounts insurers often offer exclusively to new customers, leaving long-term customers paying higher rates. While staying with the same insurer might seem convenient, it could mean missing out on savings—and you could end up paying more over time!
This isn’t always the case, but it’s worth keeping in mind. If you notice your insurer advertising discounts for new customers, it’s worth giving them a call to see if they’ll extend the offer to you.
Alternatively, you can explore other options to see if better deals or policies are available. A great way to check if you’re being affected by a loyalty tax is by using Market Scan. This tool lets you compare your current insurance with other offers in the market, so you can be sure you're still getting the best deal.
If you're looking for new cover, whether for a new car, home, or simply contents insurance, Market Scan is an excellent option. Market Scan provides multiple quotes and a side-by-side comparison of policy benefits, making it easy to evaluate and choose the right insurance for you. Plus, it’s fast and user-friendly, taking less than five minutes, and you only need to fill in your information once.
Don’t overinsure
Why pay for more than necessary? The more you insure, the more you pay. It’s important to check your sum insured regularly to make sure you’re not spending extra on insurance for your car, house, contents, or life insurance that you might not need.
To show how this works, let’s look at how different levels of contents insurance can affect costs for a house in Auckland:
Contents Sum Insured ($) | Yearly Average Contents Insurance Cost ($) | Savings By Reducing The Sum Insured ($) |
|---|---|---|
$150,000 | $960 | $0 |
$100,000 | $866 | $94 |
$50,000 | $690 | $270 |
$25,000 | $628 | $332 |
Source: Quashed As you can see, insuring your contents for $150,000 when the value of your contents is $25,000 could mean paying over $960 annually instead of just $628. That’s a big difference—and those extra costs can add up over time!
So, how do you make sure your sum insured is realistic? Thankfully, there are a number of online tools to help you calculate the value of your house and contents, such as Cordell Sum Insured for houses or the Quashed contents calculator that prompts you to list valuables you may have and offers a simple way to add it all up. If you’re looking to value your vehicle, browse second-hand listings and try some free online tools such as Trade Me’s car valuation app.
If you're still unsure, don't worry! You can sign up for free with Quashed and get help understanding how to pick the right sum insured amount. In no time, you’ll be on your way to saving money on your insurance. It’s quick, easy, and completely free to get started!
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!
Check the excess with your insurance
Understanding your excess is crucial when making an insurance claim. The excess is the amount you pay upfront. For example, if your policy has a $300 excess and you file a claim for $2,000, you cover the first $300, and your insurer pays the remaining $1,700.
Opting for a higher excess can lead to significant savings on your premiums. If you have the financial cushion to handle a larger excess, this strategy could save you money in the long run.
Check out the table below, which illustrates how different excess amounts affect comprehensive car insurance premiums for a Land Cruiser Prado GX. Key assumptions: sum insured of $30,000 for a 30-year-old male in West Auckland.
Excess ($) | Yearly Average Comprehensive Car Insurance Costs ($) | Savings by Increasing Excess ($) |
|---|---|---|
$400 | $2,109 | $0 |
$750 | $1,820 | $289 |
$1,500 | $1,706 | $403 |
Source: Quashed Increasing your excess from $400 to $1,500 could save you $403 each year. However, a higher excess means you'll pay more upfront if you make a claim. Have you considered how much you could save by adjusting your excess? Try Quashed today and discover the potential benefits for your insurance premiums.
Pick the right insurance policy
This might seem obvious, but it is not necessarily as straightforward as you might expect. Choosing the right policy is essential if you want the best value for your money. However, this doesn’t mean picking the cheapest policy; it means making an informed decision by taking into account the policy benefits that are more relevant or important to you.
Quashed’s Market Scan is perfect for this, allowing you to compare features of the insurance cover as well as the price! Scroll down the list of policy details and ask yourself which ones are valuable to you, and whether they are worth paying more for. Look out for any differences in benefits that explain the variations in premiums between policies.
Some insurers will offer policies with all the bells and whistles, whilst others will have these as add-ons. This is great if you’re after a no-frills policy, but the cost of these could add up if you’re looking for something with all the features.
For example, one car insurer might cover you for lost or stolen car keys, but another may not. Another example is that one house insurer might provide $20,000 to cover accommodation costs if you are unable to live in your house after it is damaged, whereas another may cover you for $50,000. This could mean the difference between you being fully covered or having to top up on accommodation costs while your house is being repaired or rebuilt.
Choosing the right policy might seem like a no-brainer, but it can be overlooked by many of us. It is helpful to sit down and ask yourself what you need from a policy and go from there. Market Scan helps make it easy to compare policies so you know how they will cover you and your valuables.
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Check if you’re already covered
This probably doesn’t apply to big policies such as house, contents, or vehicle insurance. However, when taking out a policy, check that you’re not already covered. A good place to start is by rereading your employment contract. Life, health, or even income protection insurance provided by employers is fairly commonplace nowadays. Avoid doubling up so you can save money on your insurance.
Another common source of cover is your credit card. Some premium credit cards offer travel insurance or purchase warranty insurance, as long as you pay using your card. Check with your card provider to see if you are covered, and read up on the policy details. You can easily do this on Quashed by selecting the credit card you have, and we’ll show you the insurance benefits that come with your card.
If you've worked in Australia and have a superannuation policy, it’s a good idea to check if it includes any additional cover, such as life insurance, total and permanent disability (TPD) insurance, or income protection. Many superannuation funds automatically include these types of cover, offering valuable financial protection for you and your family in case of serious injury, illness, or death. Take some time to review your policy specifics, as cover and benefits can vary between funds.
Consider third-party, fire and theft car insurance
Looking to save on car insurance? Switching from comprehensive cover to third-party, fire, and theft insurance is a cost-effective option worth considering. Here’s an example of how much you could save: a 50-year-old male in Auckland with a Landcruiser Prado valued at $13,000 and a $500 excess.
Insurance Type | Yearly Average Car Insurance Costs ($) |
|---|---|
Comprehensive car insurance | $967 |
Third-party, fire, and theft cover | $605 |
Savings from switching | $362 |
Source: Quashed
As this example shows, third-party, fire, and theft insurance is $362 cheaper annually than comprehensive coverage, making it a budget-friendly choice for Kiwi drivers. However, it’s essential to consider the trade-offs: this type of policy excludes damage to your own vehicle if you’re at fault and doesn’t cover natural disasters like floods or storms. Be sure to weigh your needs carefully before making the switch.
Market Scan quotes are direct from insurers
So you won’t pay more with Quashed
Change your payment frequency to yearly
Paying your insurance annually instead of monthly could save you money. Let's return to the same example: a 50-year-old male in Auckland with a Landcruiser Prado valued at $13,000 and a $500 excess. The table below outlines the costs for comprehensive car insurance.
Payment frequency | Yearly Average Car Insurance Costs ($) |
|---|---|
Monthly payments (over a year) | $1,065 |
One yearly payment | $967 |
Average savings from changing the payment frequency | $98 |
Source: Quashed
As you can see, switching to an annual payment could save $98 on average. While this is a simple way to reduce costs, we understand that paying a larger lump sum upfront may not suit everyone. However, if it’s within your budget, switching to annual payments is an easy way to save—whether for things you enjoy or for a rainy day.
Consider bundling insurance policies
Bundling insurance refers to purchasing multiple types of insurance policies from the same provider, often at a discounted rate. Common examples of bundling include combining auto and home insurance, or auto and life insurance.
By bundling, customers can usually save money on premiums, streamline billing, and have a single point of contact for managing their policies.
Consider bundling your insurance policies with one insurer to get additional discounts, but only if it makes sense! (You can check out our tips on bundling here – it’s not always cheaper).
Wrapping it all up
Getting a good deal on insurance doesn’t have to be complicated, but it sure can feel like it sometimes. By getting insurance savvy, knowing your alternatives, and understanding what levers to pull, you can keep the cost down. Whether it's dodging loyalty taxes, adjusting your excess, or checking you’re not overinsured, there are loads of great ways to save!
Ready to start saving on your insurance today?
Unlock your potential savings with Quashed! Sign up now for free to instantly compare quotes, adjust your coverage, and see how much you can save in just 5 minutes. Start your journey toward smarter, more affordable insurance today.
