Car insurance premiums have almost doubled in the last two years for some car owners in New Zealand according to a study conducted by Consumer NZ.
A media release by Consumer NZ said inflation and extreme weather events are the factors driving up the cost of insurance across the board, but another contributing factor is the age and life stage of the vehicle owner. Consumer NZ is an independent, non-profit organisation dedicated to getting New Zealanders a fairer deal.
The annual car insurance survey conducted by the organisation found premiums have increased by as much as 46% since 2023. Consumer NZ said though the car insurance premiums have surged in the past two years but switching insurance providers could save the customers hundreds of dollars.
"How much the customer will pay depends on things like whether the person lives in a flood-prone area, the car one drives, and even on the age and gender of the person. Every insurer will base its premiums on risk and because not all insurers are equal – they use their own risk assessments – the customer might be more or less of a risk to one insurer or another.”
The survey found young males will pay more in car insurance premiums than older people or young females. And older females could pay more than older males – depending on the insurer.
The survey findings revealed that when the costs for four different age brackets across nine insurance companies were compared, it was found that the annual savings ranged quite significantly - between NZ$481 and NZ$1,296.
Since 2023, the lowest median increase was just 0.6% for a family of four living in Auckland, and the highest median increase was 46% for young males living in Christchurch.
Consumer NZ said, “You might find your insurance policy includes towing expenses or key replacements as part of its standard offering. But if you very rarely park in the city and never lose your keys, you might be paying more than you need.
“Take the time to compare what's on offer and consider whether switching plans or providers would get you back to a policy you can afford."