The Average Cost of Car, House, and Contents Insurance in New Zealand (June 2024)
Our research reveals the latest insights on the average cost of car, house, and contents insurance in New Zealand for 2024. We illustrate regional variations, factors driving price increases, and practical tips to save on ever-increasing policy costs. Stay informed with our comprehensive annual update.
Updated 8 June 2024
Summary:
Our detailed report, the first of its kind in New Zealand, examines average costs and annual changes in three key general insurance categories:
We also outline:
Important: Stats NZ data confirms the price shocks of 2023 and 2024:
- Insurance premiums are rising, causing uncertainty and confusion for many policyholders. Insurance costs vary significantly depending on where you live, with factors such as increasing crime rates and recent floods playing a significant role. However, these are not the only reasons for higher costs.
- This guide delves into the average prices and year-over-year changes for car, house, and contents insurance. We aim to help you understand the factors driving these increases and provide practical advice to navigate these changes effectively.
- By comparing the latest data and trends, we aim to clarify the complexities behind rising insurance premiums and offer strategies to help you manage and potentially reduce your policy costs.
Our detailed report, the first of its kind in New Zealand, examines average costs and annual changes in three key general insurance categories:
We also outline:
Important: Stats NZ data confirms the price shocks of 2023 and 2024:
- In the table below, Stats NZ data, as of 31 March 2024, revealed significant increases in house (classified as dwelling, up 24.6%), contents (up 28%) and car insurance (classified as 'vehicle', up 22.6%) since 30 June 2023. The data is taken from Table 7.02, which you can download directly from Stats NZ.
Stats NZ March 2024 - Percentage Change in Cost of Car, House, and Contents Insurance
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MoneyHub Founder Christopher Walsh explains why insurance costs will continue to increase and why comparing prices and switching gives you the best chance of saving:
As Stats NZ confirms, insurance premiums for car, house, and contents are rising due to various factors, including inflation, higher claim rates from natural disasters, greater weather risks and increased repair and replacement costs. Whether car insurance, house insurance, or contents insurance, you can expect your premiums to rise annually. Sticking with the same insurance provider year after year can be convenient, but it might not be the most cost-effective. Different insurers offer varying rates for the same coverage, and these rates can change significantly over time. By comparing insurance quotes regularly, you can ensure you're not overpaying for your coverage. Our research has shown substantial differences in insurance premiums between providers. For example, within the same city, car insurance premiums can vary by as much as $400 to $600 for the same vehicle. Similarly, house and contents insurance costs can differ by hundreds of dollars depending on the insurer and specific coverage options. Many New Zealanders assume that staying loyal to their current insurer will result in the best deal - however, this is often not the case. Insurance companies increasingly use low prices to get new customers, meaning long-term customers may pay more than they should. By shopping around and switching providers, you can take advantage of these introductory rates and save money. When comparing insurance, look closely at the coverage details. Sometimes, cheaper policies come with higher excesses or reduced coverage limits. In our research, we have compared prices and policy coverage to help you find insurance that meets your needs without sacrificing essential protection. |
Christopher Walsh
MoneyHub Founder |
Our approach to calculating average insurance prices:
In the video below, MoneyHub Founder Christopher Walsh explains our guide and what you need to know everytime you renew or switch insurers:
In the video below, MoneyHub Founder Christopher Walsh explains our guide and what you need to know everytime you renew or switch insurers:
Average Cost of Car Insurance
Know This First: Our research team believes that publishing one "average price" for car insurance can be misleading for several reasons, as it oversimplifies the complexity of how insurance premiums are calculated.
Some studies may publish that the average car insurance premium for Auckland is "$1,600", and nationwide, it's "$1,400". However, this doesn't provide meaningful insights due to several factors:
Our approach:
Our findings:
Some studies may publish that the average car insurance premium for Auckland is "$1,600", and nationwide, it's "$1,400". However, this doesn't provide meaningful insights due to several factors:
- Variation in car models: The cost of insurance varies significantly between different car models. For example, insuring a Tesla will be much more expensive than insuring a Toyota Corolla, so an average price for all cars isn't useful.
- Insured car value: The value of the insured car greatly influences the premium; high-value cars cost more to repair or replace, leading to higher premiums.
- Driver profile: Younger, less experienced drivers typically pay higher premiums. Similarly, drivers with a history of accidents or traffic violations face higher costs.
- Location: The driver's location can affect premiums due to regional risk factors like theft rates, weather conditions, and accident statistics.
- Excess levels: Higher excess (deductible) amounts generally reduce the premium cost, whereas lower excess levels increase it.
Our approach:
- Comparing premium movements for specific car models: Instead of using average prices, we analyse the premium changes for common car models, such as the Toyota Corolla and RAV4, over the years to get a clearer picture of how different vehicles are affected by market conditions.
- Price range between different insurers: Insurance premiums can vary widely between providers for the same coverage. Our car insurance comparison research highlights these ranges, helps identify the best deals, and underscores the importance of shopping around.
Our findings:
- Our research comparing car insurance costs across different providers and cities (for two popular cars - RAV4 and Corolla) confirms price differences can be quite substantial. We found variances of between $400 and $600 within the same city between insurers for our 2011 Toyota Corolla quote samples.
- Across multiple cities there is a noticeable difference between the highest and lowest insurance costs, often exceeding $400, shows that regardless of the city, there are significant savings to be had by comparing insurance providers.
- These differences continue to be reported by MoneyHub users who use our car insurance comparison
Average Annual Car Insurance Policy Costs for a 2017 Toyota RAV4 (2024 vs 2023)
$28,000 insured value, average quotes for a 35 year-old male driver:
| Location | Average (April 2024) | Average (June 2023) | % Change |
|---|---|---|---|
| Takapuna, Auckland | $1,489 | $976 | 53% |
| Henderson, Auckland | $1,632 | $1,036 | 58% |
| Mangere, Auckland | $1,721 | $1,040 | 66% |
| Hamilton | $1,333 | $793 | 68% |
| Wellington | $1,433 | $897 | 60% |
| Christchurch | $1,444 | $892 | 62% |
| Dunedin | $1,266 | $803 | 58% |
Average Annual Car Insurance Policy Costs for a 2011 Toyota Corolla (2024 vs 2023)
$6,500 insured value, average quotes for a 35 year-old male driver:
| Location | Average (April 2024) | Average (June 2023) | % Change |
|---|---|---|---|
| Takapuna, Auckland | $903 | $583 | 55% |
| Henderson, Auckland | $993 | $610 | 63% |
| Mangere, Auckland | $1,052 | $618 | 70% |
| Hamilton | $818 | $473 | 73% |
| Wellington | $876 | $532 | 65% |
| Christchurch | $892 | $530 | 68% |
| Dunedin | $770 | $478 | 61% |
Further data points and research:
The cost of insurance has increased significantly as outlined in the tables above. In March 2024, Interest.co.nz conducted a car insurance survey to understand the costs associated with car ownership and the changing behaviours caused by increasing car ownership costs.
Key findings included:
Key findings included:
- Third party switches: Due to rising premiums, many respondents are switching from comprehensive insurance to third party cover to keep insurance affordable and increased scepticism about the actual payout of agreed value if the car is written off.
- Policy prices keep increasing: In line with Stats NZ data, many drivers reported substantial premium increases where the annual insurance cost could be as high as 10% of the value of the car. Overall, most drivers reported dramatic increases in premiums, with many experiencing 20% to 30% hikes. Some saw renewal increases as high as 40% to 50%, driven by insurers' need to recover from significant events like the Auckland floods and Cyclone Gabrielle.
- Comparing and switching insurers is common: Many drivers felt insurers don't reward loyalty, which made it easy to shop and compare for better deals; some drivers even experienced a "loyalty penalty," where staying with the same insurer did not result in discounts, prompting them to switch providers and save money.
- Increasing excesses: The survey also suggested that some drivers increase excesses to reduce policy costs, such as moving the excess from $500 to $1000 to manage a premium hike.
- More Details: Compare Car Insurance
Average Cost of House Insurance
Know This First: Our research team believes that publishing one "average price" for house insurance can be misleading for several reasons, as it oversimplifies the complexity of how insurance premiums are calculated.
Some studies may publish that Auckland's average house insurance premium is "$2,000", and nationwide, it's "$1,800". However, this doesn't provide meaningful insights due to several factors:
Our approach:
1. Comparing premium movements for specific property types: Instead of using average prices, we analyse the premium changes for common property types to get a clearer picture of how different properties are affected by market conditions.
2. Price range between different insurers: Insurance premiums can vary widely between providers for the same coverage. Our house insurance comparison research highlights these ranges, helps identify the best deals, and underscores the importance of shopping around.
Our findings:
Our research comparing house insurance costs across different providers and locations confirms that price differences can be substantial. We obtained quotes for various property types in different regions of New Zealand, illustrating the significant variation in costs.
More Details: Compare House Insurance and Difficult to Insure Areas
Some studies may publish that Auckland's average house insurance premium is "$2,000", and nationwide, it's "$1,800". However, this doesn't provide meaningful insights due to several factors:
- Variation in property types: The insurance cost varies significantly between different property types. For example, insuring a high-value home with extensive features will be much more expensive than insuring a standard single-story home. Hence, an average price for all properties isn't useful.
- Sum insured value: The insured value of the property greatly influences the premium; high-value properties cost more to repair or replace, leading to higher premiums.
- Location: The property's location can affect premiums due to regional risk factors like earthquake zones, flood zones, theft rates, and weather conditions. Our guide on difficult-to-insure areas has more information.
- Excess levels: Higher excess (deductible) amounts generally reduce the premium cost, whereas lower excess levels increase it.
Our approach:
1. Comparing premium movements for specific property types: Instead of using average prices, we analyse the premium changes for common property types to get a clearer picture of how different properties are affected by market conditions.
2. Price range between different insurers: Insurance premiums can vary widely between providers for the same coverage. Our house insurance comparison research highlights these ranges, helps identify the best deals, and underscores the importance of shopping around.
Our findings:
Our research comparing house insurance costs across different providers and locations confirms that price differences can be substantial. We obtained quotes for various property types in different regions of New Zealand, illustrating the significant variation in costs.
- Significant variations: Within the same city, we found variances between $500 and $800 between insurers for our property quote samples.
- Regional differences: Across multiple cities, there is a noticeable difference between the highest and lowest insurance costs, often exceeding $700. This shows that regardless of the city, there are significant savings to be had by comparing insurance providers.
- In Auckland, house insurance premiums for a single-story, brick and tile roof property with a sum insured value of $700,000 ranged from approximately $1,700 to $3,000 depending on the insurer and specific location.
- Using the same home value and build specs, Wellington premiums ranged from around $2,180 to over $4,200, reflecting the higher risk factors and variations in coverage.
- In the South Island, premiums in Christchurch varied from about $2,200 to $3,300, again showing significant differences based on the insurer.
- MoneyHub users who use our house insurance comparison tool continue to report significant differences, reinforcing the need to make property-specific insurance comparisons.
More Details: Compare House Insurance and Difficult to Insure Areas
Average Annual Home Insurance Policy Costs for a $700,000 Rebuild (2024 vs 2023)
Owner-occupied, 40 year old policy holder, free standing home, concrete slab foundations, built 1980
| Location | Average (June 2024) | Average (June 2023) | % Change |
|---|---|---|---|
| Takapuna | $2,271 | $2,041 | 11.26% |
| Mt Wellington | $2,161 | $2,149 | 0.56% |
| Mangere | $2,219 | $2,266 | -2.06% |
| Hamilton | $2,245 | $2,228 | 0.77% |
| Tauranga | $2,628 | $2,162 | 21.56% |
| Wellington | $4,317 | $3,218 | 34.14% |
| Upper Hutt | $4,813 | $3,874 | 24.23% |
| Christchurch | $3,314 | $2,860 | 15.87% |
| Nelson | $2,842 | $2,559 | 11.07% |
| Dunedin | $2,284 | $2,058 | 10.97% |
| Invercargill | $2,545 | $2,555 | -0.41% |
Further data points and research:
House insurance costs are increasing, alongside rates bills and mortgage rates, contributing to financial pain for many homeowners. To make sense of the increasing average house policy costs, we itemise the key factors influencing house insurance premiums:
- Location: Based on historical data, insurance premiums heavily depend on the likelihood of natural disasters, such as earthquakes and storms. Since 2018, many insurers have used risk-based pricing, meaning low-risk areas like Hamilton no longer subsidise higher-risk regions such as Napier and Wellington, hence the spike in insurance costs for many New Zealanders. Our guide to difficult-to-insure areas has more information.
- Proximity to water supply and emergency services: Houses closer to fire stations and with better access to water tend to have lower premiums. A property relying on rainwater tanks far from town will attract higher costs.
- Age of the house: Older houses, particularly those built before 1935, often have higher premiums due to the likelihood of issues such as corroding electrical wiring, old pipes, and original roofing. Our guide to insuring old homes has more information.
- Use of the property: Owner-occupied homes generally have fewer claims than rental properties or holiday homes. Rental properties attract higher premiums due to landlord risks, such as malicious damage and loss of rent. Holiday homes, often unoccupied for extended periods, face increased risks like unnoticed water damage and break-ins.
- Replacement value: The higher the insured value of a property, the higher the premium. However, the premium increase isn't linear; for example, a $1,500,000 rebuild value means you'll pay double the insurance of someone with a $750,000 rebuild. Most claims are for smaller losses rather than total rebuilds.
- Excess and extras: The excess is the amount the property owner agrees to pay out-of-pocket in case of a claim. A higher excess generally results in a lower premium. Additional covers, such as higher loss of rent for a rental property or nil excess glass cover, can increase the premium.
- Government leviesTwo government levies are included in your premium—the earthquake Levy and the Fire and Emergency Service Levy. Both historically increase on a regular basis.
- GST: A 15% tax is applied to the insurance cost, including the insurer premium and government levies. For a typical house insurance premium of $1,200, including GST, approximately $670 goes towards levies, $510 covers the insurer's costs, and $443 is retained by the insurer to pay claims, reinsurance, and operational expenses.
MoneyHub Founder Christopher Walsh Explains How Our Friends at Initio Offer Instant Quotes and Leading Policies for Home and Home & Contents:
Christopher Walsh
MoneyHub Founder |
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Average Cost of Contents Insurance
Know This First: Our research team believes that publishing one "average price" for contents insurance can be misleading for several reasons, as it oversimplifies the complexity of how insurance premiums are calculated.
Some studies may publish that Auckland's average contents insurance premium is "$600", and nationwide, it's "$500". However, this doesn't provide meaningful insights due to several factors:
Our approach:
Our findings:
Some studies may publish that Auckland's average contents insurance premium is "$600", and nationwide, it's "$500". However, this doesn't provide meaningful insights due to several factors:
- Variation in coverage amounts: The cost of insurance varies significantly depending on the coverage amount. For example, insuring $25,000 worth of contents will differ from insuring $50,000 or $100,000.
- Location: The property's location can affect premiums due to regional risk factors like theft rates, weather conditions, and proximity to emergency services.
- Excess levels: Higher excess amounts generally reduce the premium cost, whereas lower excess levels increase it.
- Individual circumstances: Factors such as the policyholder's claim history, the presence of security systems, and the type of dwelling also influence premiums.
Our approach:
- Comparing premium movements for specific coverage amounts: Instead of using average prices, we analyse the premium changes for specific coverage amounts between periods to get a clearer picture of how different policies are affected by market conditions.
- Price range between different insurers: Insurance premiums for the same coverage can vary widely between providers. Our contents insurance comparison research highlights these ranges, helps identify the best deals, and underscores the importance of shopping around.
Our findings:
- Our research comparing contents insurance costs across different providers and locations confirms that price differences can be substantial. We obtained quotes for $25,000 contents cover in various regions of New Zealand, illustrating the significant policy cost variation, as outlined in our contents insurance comparison research.
- Significant variations: Within the same city, we found variances between $200 and $600 between insurers for our property quote samples.
- Regional differences: Wellington, Lower Hutt and other difficult to insure areas have much higher contents insurance costs.
- MoneyHub users who use our contents insurance comparison continue to report these differences, reinforcing the importance of detailed, property-specific insurance comparisons.
- More details: Compare Contents Insurance
Average Annual Contents Insurance Policy Costs for $25,000 of General Items
| Location | Average (April 2024) | Average (June 2023) | % Change |
|---|---|---|---|
| Takapuna, Auckland | $567 | $574 | -15% |
| Mangere, Auckland | $754 | $711 | 6% |
| Hamilton | $642 | $559 | 15% |
| New Plymouth | $567 | $574 | -1% |
| Wellington | $800 | $505 | 59% |
| Lower Hutt | $872 | $585 | 49% |
| Nelson | $540 | $488 | 11% |
| Christchurch | $632 | $549 | 15% |
| Dunedin | $474 | $449 | 6% |
Further data points and research:
Contents insurance costs are rising, much like house insurance, due to several key factors.
- Location: The likelihood of natural disasters, crime rates and flooding drive policy costs. Properties in high-risk areas, such as those prone to earthquakes, floods, or frequent storms, typically have higher premiums.
- Living situations: Whether a property is owner-occupied or rented impacts contents insurance premiums. Owner-occupied homes generally have lower premiums than policyholders living in rental properties, which are more susceptible to risks like malicious damage and theft. Holiday homes, often unoccupied for long periods, face higher premiums due to increased risks of unnoticed water damage and break-ins.
- Insured value and coverage: The total value of the insured contents plays a crucial role in determining the premium. Higher insured values lead to higher premiums. The chosen excess amount also affects the cost; a higher excess can lower the premium. Additional coverages, such as higher limits for valuable items like electronics or jewellery, and specific coverages like nil excess for glass breakage, can further increase the premium.
Must-Know Facts About Average Insurance Costs
- Regional variations matter: Insurance costs can vary significantly depending on where you live. Factors like local crime rates, weather conditions, and the availability of repair services can all impact premiums. For example, house and contents insurance premiums in Wellington are much higher than in Dunedin due to different regional risk factors, as is the case for car insurance in Dunedin vs Christchurch.
- Different insurers have different prices: Our research suggests substantial premium differences between insurance providers for the same coverage.
- Being loyal can be expensive: Staying with the same insurer for a long time doesn't always pay off. Insurers often offer better rates to attract new customers, while existing customers might see their premiums gradually increase over time. This means that regularly comparing insurance quotes and being willing to switch providers can help you avoid paying more than necessary.
- Increasing your excess will lower premiums: Opting for a higher excess (the amount you pay out of pocket before insurance kicks in) can significantly reduce your premiums, but you need to make sure you can afford the excess in the event of a claim.
- Natural disasters and weather events are increasing: Recent natural disasters, like the Auckland floods and Cyclone Gabrielle, have led to increased insurance claims, which in turn drive up premiums for everyone. This reality is facing New Zealand beyond 2024 and 2025, and therefore, increased insurance costs should be expected.
Frequently Asked Questions
Why are insurance premiums increasing so rapidly?
Insurance premiums are rising due to several factors, and some parts of New Zealand are affected more than others:
- Inflation: General price increases in the economy affect the cost of insurance.
- Natural disasters: Events like floods, earthquakes, and cyclones lead to higher claims, which in turn push up premiums.
- Higher repair and replacement costs: Repairing or replacing homes, cars, and contents has increased significantly.
- Increased risk factors: Changes in regional risk factors, such as higher crime rates or more severe weather patterns, also contribute to higher premiums
How can I ensure I'm getting the best deal on my insurance?
The best way is to compare online to see what other insurers offer and be prepared to switch. You may also want to increase your excess to lower your premium and ensure you're not over (or under) insuring.
Is loyalty to my current insurer rewarded?
We don't think so. While we can't prove it definitively, we believe long-term customers often pay more than new customers. Insurers tend to offer the best rates to attract new clients, hence the need to compare and avoid the "loyalty tax".
Why does the cost of insurance vary so much between different insurers?
Insurance costs vary due to:
- Different risk assessments: Each insurer assesses risk differently, leading to variations in premiums. Our difficult to insure areas (for homes) has more details.
- Coverage options: Policies differ regarding coverage limits, exclusions, and benefits, which affect the price.
- Operational costs: Insurers with higher operational costs might charge higher premiums.
- Marketing strategies: Some insurers offer lower premiums to attract new customers, while others may focus on customer service and claim handling, which can result in higher costs.
How do regional differences impact insurance premiums?
Regional differences impact premiums based on the following:
- Risk factors: Areas prone to natural disasters (Wellington, Lower Hutt, parts of Auckland, Hawkes Bay), high crime rates (Christchurch, parts of Auckland), or severe weather conditions typically have higher premiums.
- Repair costs: Regions with higher labour and material costs will see higher premiums.
- Claim history: Regions with a higher frequency of claims can lead to increased premiums for residents, as the risk is seen to be higher, and insurers need to charge more to make it profitable.
What steps can I take to lower my insurance costs?
To lower your insurance costs, you may consider increasing your excess, improving security (adding security features like alarms and cameras can lower your premiums), bundling policies, comparing annually, making sure your coverage matches your needs, and adjusting if necessary.
What should I look for when comparing insurance policies?
When comparing policies, consider:
- Coverage limits: Ensure the policy covers the full value of your assets.
- Exclusions: Understand what is not covered by the policy.
- Excess amount: Check the excess you will need to pay in the event of a claim.
- Discounts and benefits: See if the insurer offers additional benefits or discounts.
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