Five things to do when your premiums surge

Insurance plays an essential role in keeping us as resilient as possible in case the unthinkable happens. Instead of carrying the risk ourselves, we let a company do it for us.

Over the past few years, though, household insurance costs have risen by close to 30%, according to the latest data from Quashed.co.nz (the online insurance-comparison site). This makes keeping up with premiums a real struggle, and  the costs for insuring your car, home and belongings have jumped around the country. The average annual premium for house, contents and car together is $5020.

Another key thing to know is that discounts from 'bundling' – keeping your different insurances with a single insurer so you can pay less – have largely disappeared across the industry. So while you used to be able to bundle and save, that's no longer the case. 

Let’s take a closer look at just how much insurance premiums have increased, and what you can do about it. 

Car insurance premiums have jumped

Insuring your vehicle has gotten much more expensive in New Zealand. The national average yearly premium for car insurance hit $1267 in the first quarter of 2026. That’s a substantial 33% jump from the $935 average just three years earlier. 

Boosting your excess can help 

To try to keep premiums down, many of us opt for higher excess levels on our policies – which means we’ll be paying more out of our own pockets if something happens. Excesses continue to rise and have jumped 14% in the past year for car insurance and 9% for house and contents insurance as well.   

Different policies have dramatically different premiums 

Consumers can end up paying a lot more for their car insurance, depending on the insurer they choose. Cover for a 2020 Corolla in Auckland, for example, can cost anywhere between $960 and $1790 a year – a whopping $830 of difference. 

This highlights how important it is for us all to diligently shop around and compare car insurance rates from multiple companies. Ideally you want to compare four or five. You could be paying hundreds more per year by sticking with your current insurer versus switching to the most affordable option. 

Home insurance rates are surging, too 

Car owners aren’t the only ones facing sticker shock on their insurance bills. The cost of home insurance in New Zealand has climbed 31% in the past three years, from an average of $2243 in 2023 to $2949 in 2026. 

To try to offset these massive increases, many homeowners are raising the excess levels on their home insurance policies. This can provide some premium savings, but also means taking on more risk that they’d pay for if something happened. 

Even contents insurance is climbing 

Alongside car and home insurance going up, up, up, the cost of contents insurance, which protects your personal belongings and household items, has risen 17% around the country in the past three years. The average Kiwi now pays $804 per year to insure their contents. 

This reinforces how vital it is to shop around for contents insurance as well, to find the best possible rates. 

Here’s how you can save on insurance costs 

With premiums leaping across the board, many Kiwis are looking for ways to keep their insurance costs under control. Here are some tips that can help: 

• Shop around and compare rates frequently. Prices of insurance products change all the time, so the approach of simply renewing with your current provider each year can get very expensive. Services such as the Quashed Market Scan can help you quickly compare rates from multiple insurers. 
• Adjust your coverage levels. You may be able to save by increasing deductibles or excess levels, or by tweaking your coverage limits and options. Just be careful not to under-insure and leave yourself exposed. 
• Improve your home security. Installing alarms, cameras or other security devices can help reduce your home and contents insurance premiums.
• Bundle no more. While it used to pay to be loyal and keep all your insurances with a single company to get a 'multi-product discount', those days are mostly gone. In fact, your old bundle may be costing you more than it should, so that's just another reason to shop around to make sure you've got the best deal for you.   
• Build your no-claims history. The longer you can go without a claim, the lower your premiums will be. Drivers and homeowners with long claim-free histories tend to get better rates. 

Insurance prices have put a real squeeze on household budgets, especially for those on a fixed income or for whom money is tight, but there’s good news: the Quashed data shows that by taking the time to shop around, the average household can potentially save $1500 per year on their total insurance costs. With premiums rising so sharply, those savings are becoming ever more meaningful. 

Although the increases are daunting, being savvy about your cover and taking advantage of tools to compare rates can help you keep your policies affordable.