“Generally, across the board, we are continuing to see insurance costs increase, and definitely people in the capital are feeling the pain,” Lim said.
He said nine out of 10 of people using the Quashed website didn’t adjust their sum insured and excess amounts when comparing quotes.
“By fine-tuning your sum insured amount or even looking at taking your excess up a notch or two, it could potentially be saving 15 to 20% in terms of insurance cost. It could mean roughly about $1000 a year in savings,” Lim said.
“There are actually big price differences across insurance companies, but if you’re sticking with your insurer, do look at pulling those levers. Do take a closer look at whether you can afford to increase your excess.”
Insurance premiums have doubled in the past decade. Prices increased six times higher than incomes in the year to March, as the insurance industry responded to last year’s severe weather events.
Insurance Council chief executive Kris Faafoi said the rise in premiums was because of companies having to pass on the rising costs of replacing assets and repairing buildings, and a 25 to 40% increase in the cost of reinsurance.
Consumer NZ campaigns adviser Abby Damen said while most people were worried about rising prices, it was crucial people always have some form of coverage for things like fire and burglaries.
