The cost of car insurance in New Zealand

The average cost of car insurance was $1,317 per year - or $110 per month as at Q2 2024. The cost of insuring motor vehicles in New Zealand has notably increased compared to last year. As at Q2 2024, the average annual premium for full comprehensive cover increased by 19% from $1,104 in Q2 2023. More affordable third-party insurance also saw a significant hike, jumping 30% from $390 to $507 annually.

This upward trend varies significantly by location. In Auckland, drivers now face an average annual cost of $1,541, or $128 per month. In comparison, Wellingtonians pay around $1,178 yearly, or $98 monthly, while for Canterburians, the figure is approximately $1,218 annually, or $102 monthly.

Average car insurance premium in Q2 2024

Why do car insurance costs vary so much by location? According to Quashed CEO, Justin Lim, it boils down to risk.

'In densely populated cities like Auckland, where vehicle numbers have been increasing, there’s a higher likelihood of accidents, which is reflected in car insurance premiums,' explains Lim. He adds, 'Areas with high rates of car theft or vandalism also face higher costs. Finally, natural disasters, like flooding, force insurers to adjust premiums to manage these risks more effectively.’

To illustrate these regional differences further, consider the comprehensive vehicle insurance costs per month for a 2015 Subaru Forester XT Turbo (key assumptions = 100,000 km on the clock, 40-year-old male, sum insured $20,000).

• Mount Eden, Auckland: Lowest $177, Average $192, Highest $210

• Porirua, Wellington: Lowest $134, Average $147, Highest $162

• Heathcote Valley, Christchurch: Lowest $139, Average $153, Highest $166

The story is similar for the one and only Toyota Aqua hybrid, which was touted as New Zealand’s most stolen car earlier this year. The below show the monthly costs for 2020 Toyota Aqua Hybrid S (key assumptions = 50,000kms on the clock, 35 year old female, sum insured $30,000). 

• Massey, Auckland: Lowest $154, Average $285, Highest $419

• Seatoun, Wellington: Lowest $119, Average $224, Highest $335

• Spreydon, Christchurch: Lowest $130, Average $261, Highest $399

How much can Kiwis save by comparing car insurance policies?

Although car insurance costs are on the rise, there are opportunities to get a better deal.

The gap between quotes from different insurers is considerable. Our latest Market Scan reveals that the average price difference in comprehensive car insurance quotes has increased from $508 per year in Q2 2023 to $728 per year in Q2 2024 – a staggering 43% increase. For Kiwi drivers, this widening gap means there’s more reason than ever to take control and compare car insurance policies. 

Average car insurance premium difference across insurers in Q2 2024

The cost of house insurance in New Zealand

The average cost of house insurance was $2,725 per year - or $227 per month as at Q2 2024.

The impact of extreme weather events on house insurance claims and costs has been much discussed. Earlier this year research from Consumer NZ showed that 8% of homeowners were letting their home insurance policy lapse due to high costs. It has also been reported that the cost of insuring a home is rising six times faster than incomes..

Our data highlights some major regional differences across New Zealand. Auckland homeowners pay an average of $2,071 per year (or $173 a month) for house insurance. While that may seem like a lot, it's actually below the national average of $2,725. For Wellingtonians, the story takes a dramatic turn. With a large average annual premium of $4,268, homeowners in the capital are paying more than double what Aucklanders do. To put that in perspective, the cost of insuring a home in Wellington broadly rivals body corporate fees, which typically range from $4,000 to $6,000 per year.

Average house insurance premium in Q2 2024

So, what’s the bottom line? House insurance is expensive but it isn’t just another bill—it’s an investment in protecting your biggest asset: your home. That’s why it's worth taking the time to compare policies across different insurers. For existing homeowners, it’s about making sure you’re getting the best value and not overpaying.

If you’re a first-time homebuyer, there’s more to consider than just the purchase price. Homeownership comes with additional costs, including insurance. This is especially important if you’re using KiwiSaver to buy your first home—just like over 30,000 people did last year.

After making that withdrawal, how will you rebuild your savings? The ongoing cost of insurance can make it challenging to resume or increase your KiwiSaver contributions. However, by comparing insurance options and planning ahead, you’ll be empowered to make more informed decisions for your long-term financial stability.

How much can Kiwis save by comparing house insurance?

Similar to car insurance, the gap in premium pricing for house insurance policies is widening. In Q2 2023, data from Market Scan showed the premium difference across  insurers was $890. As of Q2 2024, that difference has increased to $1,028 - an increase of 15%. This wide variation in premiums shows that regularly comparing and switching insurance has never been more crucial and puts more money back in your pocket than ever.

Average house insurance premium differences across insurers in Q2 2024

The cost of contents insurance in New Zealand

Nationally, the average cost of contents insurance was $838 per year - or $70 per month as at Q2 2024.

The same regional differences for house insurance are also evident with contents insurance, which is perhaps not surprising. In Auckland, the average cost of contents insurance is $739 per year or $62 per month. In contrast, in Wellington, it is 52% higher at $1,130 a year or $94 a month.

Average contents insurance premium in Q2 2024

How much can Kiwis save by comparing contents insurance?

Contents insurance is no different when it comes to varying premiums across insurers in New Zealand.  From our latest Market Scan data, we’ve observed that the average difference in premiums quoted by insurers can be significant, although it has not increased at the same rate as house and car insurance. 

Based on data from thousands of quotes in the most recent quarter (Q2 2024), we found that there is a $446 price difference on average between the cheapest and the most expensive contents insurance quotes.

We’d encourage homeowners and renters alike to shop and compare your contents insurance to find outstanding value. Savings of hundreds of dollars on your contents policy will quickly add up over the years to thousands of dollars back in your pocket.

Average contents insurance premium differences across insurers in Q2 2024

Take charge of your insurance, protect your financial well-being today

As we've demonstrated, actively comparing and managing your insurance policies can lead to significant savings.

Whether it’s car, house, or contents insurance, every dollar saved contributes to your overall financial health. Why pay more when you could pay less, potentially with even better coverage?

Here’s what you can do right now:

• Compare your insurance regularly. Don’t fall into the trap of paying ‘lazy tax’ – compare insurance costs and benefits quarterly to ensure you're not overpaying as rates fluctuate. Market Scan  allows you to enter your details once and receive multiple quotes in minutes in the one place.

• Review your cover. Make sure you’re neither over-insured nor under-insured by reviewing your sum insured amounts, particularly for your home and vehicles. Use online valuation tools like Cordell Sum Sure for housing valuations and Trade Me’s valuation tool for cars to help get it right for house insurance and motor insurance.

• Consider adjusting your excess. If you have some savings set aside, consider increasing your excess. This acts as your personal safety net – a small increase in your excess could lead to significant savings on premiums.

• Review policy exclusions. Always take the time to read the fine print and understand what is and isn’t covered by your insurance policy. Being aware of exclusions can prevent surprises when you need to make a claim.

Act now! Start by comparing your policies here. The sooner you start, the sooner you'll enjoy the benefits of well-managed insurance. Remember, informed decisions lead to better protection and potentially more savings.