Insurance premiums increased by 12-18% compared to September of the year, comparative website data show

Insurance comparison website Quashed says premiums for New Zealanders have continued to rise across the board over the past year.

The latest insurance data from Quashed for the third quarter (Q3) showed that general insurance premiums were up 17% compared to Q3 2023.

It found that car insurance premiums were up 18% to $1,342, home insurance was up 17% to $2,702 and property insurance was up 12% to $842.

Across the country’s three largest cities – Auckland, Christchurch and Wellington – Quashed found car insurance costs the most in Auckland at $1579, and the least in Wellington at $1193.

For home insurance, the opposite was true, with Wellington having the most home insurance premiums at $4467 and Auckland having the least at $2104.

Wellington beat Auckland again when it came to comparing property insurance premiums to the year before. Wellington had the most ($1054) and Auckland the least ($755).

How do different age groups live?

CEO Justin Lim said one of the research findings that Quashed found interesting was which age groups were most affected by the premium hike.

When it comes to age, Quashed found that 40- to 50-year-olds saw the highest growth in general insurance, up 23% year over year, and also paid the most for home insurance, at $2,995.

However, 25-30 year olds saw the biggest increase in home insurance costs over the two-year period – 49% – and they also paid the most for contents insurance over the past two years, rising 43% to $888.

Lim said that despite increases in insurance costs across the board, more than 90% of Quashed users did not adjust the premium or excess amount of their policy when comparing quotes, meaning they typically did not meet their $250 deductible obligations for contents insurance, $500 deductible. on car insurance and a $1,000 deductible on home insurance.

Adjusting both premium and deductible can result in savings of 15% to 20% in premiums each year, which on a family’s total insurance bill could amount to $978 in annual savings, he said.

Chicken and egg

Lim said it has been a good year for the platform, with insurance continuing to be at the forefront of people’s minds as insurance premiums continue to rise. This, in turn, brought even more people to Quashed.

Quashed has been launched in 2020 and operating through a browser rather than an app, it allows consumers to download their insurance policy documents to access detailed information about their plans, costs and renewal dates on one page. The platform also has a comparison tool that analyzes and compares insurance policies with other options.

Lim described it as a chicken-and-egg situation: the more consumers use the platform, the more insurers become interested in what the platform offers.

“And if you have more insurance companies, you’ll have more products to offer, helping consumers make shopping and comparison easier,” he said.

“I think we add value in both directions.”

According to Lim, there are currently 10 insurers on the site, with two more expected to join the platform before the end of the year.

The total number of platform users has now reached 50,000, up 250% from last year. The next goal is 100,000 users, which the company wants to reach next year.

Earlier this year, Quashed also received a $1 million investment from Turners Automotive Group, representing a 13% stake in the company.

Turners called it a “strategic investment.” when announcing the news in August and the company’s CEO Todd Hunter called it “a clear complement to our core used vehicle business.”

Lim told Interest.co.nz that Turners has a huge reach across the country.

“We’re really hoping to somehow build on the relationship we have with them and hopefully be able to reach a lot more New Zealanders,” he said.