Let’s face it: we don’t usually get excited about insurance. It’s the quiet achiever of our financial lives—always there, often overlooked, but critical when things go sideways.

Recently, though, Kiwis have been grappling with rising insurance premiums, and it is starting to feel like that unwelcome surge in grocery prices. The good news? You can take charge. You can navigate this challenge like a pro with the right strategies and a few tweaks.

Here is your easy-read guide to managing insurance inflation with expert insights, and answers to questions we all secretly ask Google (or shall I say AI?)

Why Are Insurance Premiums Rising in New Zealand?

Before we jump into solutions, let us unpack what is causing the increases. It’s not just your imagination; insurance inflation is genuine. Here’s what’s driving it:

1. Natural Disasters and Climate Change

New Zealand’s stunning landscapes come with a side of risk. From earthquakes to cyclones, insurers are paying out more claims than ever. Take Cyclone Gabrielle in 2023, which cost insurers over $2 billion. Insurers adjust premiums to stay financially viable, and these adjustments trickle down to you and me.

2. Rising Costs Across Industries

When the price of materials, repairs, or healthcare rises, insurance payouts also go up. For example, if fixing your leaky roof costs 15% more than last year, insurers will need to adjust premiums to reflect that.

3. Re-evaluated Risks

If you live in an area deemed at higher-risk for flooding or earthquakes, you might notice a steeper increase. Insurers are constantly updating risk assessments, and sometimes, we end up in the “expensive zone.”

What Can You Do About It?

Here is where it gets practical. Rising premiums aren’t a dead end—they are a challenge you can tackle with some strategic moves.

1. Shop Around (And Compare Smartly)

Insurance loyalty might feel comforting, but sticking with the same provider may not always be your best option. One of our clients, Emma from Auckland, came to us with a car insurance renewal notice showing a 20% increase and she has not had any accidents in the past five years. She assumed all insurers were hiking rates. However, after we helped her compare options, she found a competitor offering the same coverage for $250 less per year.

Pro Tip: Tools like Canstar and MoneyHub make comparisons easy. Check multiple providers annually to avoid overpaying, it is always a good idea to talk with a seasoned insurance adviser who can help you find the right provider.

2. Bundle Your Insurance

Combining policies can save you money. For example, one of our clients, Sarah from Rangiora, had her car, contents, and home insurance spread across three providers. After a quick consultation, we helped her bundle everything under one company. Not only did she save $400 a year, but she also simplified her admin. “I was always losing track of renewal dates,” she told us. “Now I only deal with one company, and the savings are a bonus.”

3. Increase Your Excess (If You Can Afford It)

Your excess is the amount you pay before insurance covers the rest. Increasing it can significantly lower your premiums, but it is only a good move if you have enough savings to cover the higher excess in case of a claim.

Tom from Hamilton opted to raise his car insurance excess from $300 to $750, cutting his premiums by $185 a year. “I figured I haven’t made a claim in years, so it’s worth the risk,” he said. But, Tom also ensured his rainy-day fund could handle the higher excess, just in case.

4. Regularly Review and Update Your Policies

Life changes, and so do your insurance needs. Are you still insuring the $1,500 bike you sold on Trade Me? Is your house insured for the correct rebuild value? Outdated coverage can cost you more.

One of our clients, Priya from Rotorua, reviewed her home & content insurance and realized she was over-insured due to an outdated calculation. Adjusting her coverage saved her $300 a year.

5. Look for Discounts (And Ask!)

Insurers often provide discounts for various reasons, but they might not always be prominently advertised. For instance, most companies offer no-claims bonuses, multi-policy discounts, or reductions for installing security systems. It is beneficial to inquire directly with your insurer about potential savings.

Ben from Dunedin recently installed a security camera system at his home but had not thought to notify his insurer. When we encouraged him to call them and ask about a discount, they reduced his annual premium by $150. “It was such a quick fix,” Ben said, “and the cameras give me peace of mind too“.

FAQs About Rising Insurance Premiums

Q: Can I skip insurance to save money?

Technically, yes, but that is a risky move and certainly not advised. Without insurance, you are one accident or disaster away from financial chaos. Think of it like skipping the brakes on a steep downhill ride—it might feel like you’re saving time and effort, but when the unexpected happens, the crash will be far worse than you ever imagined.

Q: Is loyalty to one insurer worth it?

Sometimes. Long-term loyalty can earn you discounts, but you should still compare policies regularly. Don’t be afraid to switch if another provider offers better value.

Q: Do new homes have cheaper insurance?

Often, yes. New homes are built to modern safety standards, reducing risks and lowering premiums. However, location, materials, and other factors still play a big role.

Q: What is the best way to lower my premiums without losing coverage?

Start by reviewing your coverage, bundling policies, and increasing your excess if it’s financially viable. Small tweaks can make a big difference.

Why Insurance Is Like a Backup Plan for Spilled Coffee

Insurance is like having a backup plan when disaster strikes—think of that moment when you accidentally knock over your coffee onto your laptop. One minute you are sipping a flat white, and the next, your emails and spreadsheets are swimming in caffeine chaos. That is when insurance swoops in, not to reprimand you for being clumsy, but to help you recover without losing your savings (or sanity).

It is the same when a burst pipe floods your living room or a sudden gust sends your backyard trampoline flying into the neighbor’s fence. You don’t think about insurance every day, but when life throws you a curveball, it’s the safety net that catches you—and helps you get back to normal with a little less stress.

Final Thoughts: Taking Control of Your Insurance Costs

Insurance is more than just a bill—it’s your safety net for life’s unexpected challenges While rising premiums may feel daunting, taking charge with small but effective actions can make a big difference.

Whether it’s updating your coverage, asking about discounts, or investing in preventative measures like security systems, these steps can help you find the balance between protection and affordability.

At its core, insurance is about peace of mind—knowing that when the unexpected happens, you are ready.

With a clear plan and a proactive approach, you can keep your finances secure and focus on what truly matters: living your life, not worrying about the “what ifs.”

Disclaimer: The information provided in this blog is for general informational purposes only and does not constitute financial or insurance advice. While we strive to provide accurate and up-to-date information, readers are advised to conduct their own due diligence and consult with licensed professionals before making any financial or insurance decisions. We are not responsible for any actions taken based on this content.