Retirement Life
4 July 2025
Has your car insurance gone through the roof?
Has your car insurance gone through the roof?
Car insurance premiums have surged in the last two years, according to Consumer NZ’s latest research, and you may well be feeling the effects.
Consumer NZ’s annual car insurance survey found premiums have risen by as much as 46 percent since 2023.
Its investigative writer, Vanessa Pratley, says inflation and extreme weather events have contributed to these higher prices, which are also influenced by the owner’s age and life stage.
“Every insurer will base its premiums on risk. How much you pay will depend on things like whether you live in a flood-prone area, the car you drive and even your age and gender,” she says.
“And because not all insurers are equal, which is to say they use their own risk assessments, you might be more or less of a risk to one provider or another.”
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Who gets hit the hardest?
When Consumer NZ compared car insurance prices across four different age brackets and nine different insurers, they found that annual savings could range between $481 and $1,296.
Young males are those who face the greatest risk assessment. They will pay more than older people and young females.
Older females can pay more than older males, too; it just depends on the insurer.
“Since 2023, the lowest median increase was just 0.6 percent for a family of four living in Auckland, and the highest increase was 46 percent for young males living in Christchurch,” Pratley says.
What you can do about it
Pratley says you can switch insurance providers at any time, and it can be worth hundreds of dollars to you in savings. However, be sure to factor in any cancellation fees that may apply.
“If the cost to insure your car is stressing you out right now, don’t cancel your cover or drop down to third-party – shop around and see what savings you could make first,” she says.
The Insurance Council of New Zealand says only 20 per cent of Kiwis had bothered switching insurance providers (for any insurance type) in the past couple of years, rising to 34 percent over the last five years. Younger Kiwis were more likely to look at switching than older ones.
“We know this is a difficult time for New Zealanders dealing with the cost-of-living and we would encourage people to check out their insurance options,” its chief executive Kris Faafoi says.
What to watch out for
Be aware that some policies may appear similar but cover very different things. ‘Standard’ cover with one insurer will be an optional extra with another, for instance.
“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,” Pratley says.
Don’t forget to factor in the insurer’s reputation when you make your decision on who to go with. Check how satisfied other customers are with that insurer before making the switch. FMG and MAS won Consumer NZ’s People's Choice award this year, for example.
With a bit of research and shopping around, you could knock hundreds of dollars off your annual insurance costs, making your next road trip that much sweeter.
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Written by:
Sonia Speedy
Sonia Speedy has been a journalist for over 20 years, working in newspapers, magazines and radio. She also runs an online platform for parents at familytimes.co.nz. She lives on the Kāpiti Coast with her young family and loves writing stories that help make people's lives easier.
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