Consumer NZ surveying has found premiums for comprehensive car insurance have increased up to 38 per cent since 2021.

Consumer is urging New Zealanders to shop around for their car insurance. Switching providers can save people hundreds of dollars per year.

This significant increase in premiums is likely due to the payout insurers faced after Cyclone Gabrielle as well as rising inflation.

“The more an insurer needs to pay out on claims, the more likely they’ll need to charge customers more,” says Consumer investigative team leader Rebecca Styles.

Despite the price increase in premiums, Consumer’s 2023 car insurance premium survey found that switching car insurance providers could result in a family of four saving up to $670 a year on average.

Consumer 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 eight per cent, it was up as much as 38 per cent for a family of four.

“While there is a perception that all car insurance is the same, there are some differences between policies which could save you money.

“We found that younger people could save nearly $38 a month by shopping around, and older people could keep an extra $40 in their pocket.”