New Zealand- Comprehensive car insurance premiums jump by up to 38% since 2021


Asia Insurance Review Premiums for comprehensive motor insurance have risen by up to 38% since 2021, according to the findings of a survey by the consumer organisation, Consumer NZ. The significant increase in premiums is likely due to the payout insurers faced after Cyclone Gabrielle as well as rising inflation, Consumer NZ says in a statement. Switching insurers can save people hundreds of dollars per year despite the premium hikes. The “Consumer's 2023 Car Insurance Premium Survey” found that switching car insurance providers could result in a family of four saving up to NZ$670 ($404) a year on average Consumer NZ obtained car insurance quotes for four scenarios: a young, middle-aged, and older person and a family of four. While the lowest median insurance increase for an older person was 8%, it was up as much as 38% for a family of four. “We found that younger people could save nearly NZ$38 a month by shopping around, and older people could keep an extra NZ$40 in their pocket,” said Consumer NZ. The savings were found to be as follows if the consumer shopped around: 

Young person aged 23: NZ$38 a month 

Middle-aged person aged 45: NZ$43 a month 

Older person aged 70: NZ$40 

a month Family of four with dad (aged 50), mum (aged 50), son (aged 19) and daughter (aged 17): NZ$56 a month. 

The 2023 insurance survey also found that among those without coverage, 10% chose to let their car insurance policy lapse due to cost – up from 2% in 2022.

 Source- Insunews ( 11-17th Nov, 2023 )