Insurance has become a huge responsibility for New Zealanders. Insurance cost has increased by 50% over the past decade. It is expected to go up again when extra levies are added to the government’s fund.
There are ways to cut some costs and save money on your insurance.
A large number of insurers offer lower prices to people who have more than one policy with the same insurance company.
People could save money by taking advantage of every discount available to them. Check for any no-claims discounts that you qualify for. Try also to get a discount for having a fire alarm or monitored security.
Higher excess on your policies can reduce premiums. This means you’ll cover more of the cost of repairs in a crash, or replacing stolen items, but you pay less in premiums.
As expected, this is only a good option for people who could afford to cover it when they have to claim.
Some insurance policies come with extra features that you might not need.
Many people could do without rental car cover. But if you live rurally and have a couple of cars available to you, you might not need it. For someone who can’t live without their car, this could work well.
Features you might pay extra for include:
- agreed value policies
- breakdown service
- guaranteed no-claims bonuses.
Always look for a better deal. It’s important for policy-holders to compare the same levels of cover. Discuss with insurers what your options are, and the best policy that meets your needs.
Consider the price, but remember that cheap isn’t always the best. The reputation of the insurer and their behaviour in a claim should be in the equation.
If there’s a better deal on the same level of cover, ask your existing provider whether they can match it or do better.
Use an online calculator if you have insurance on your house. Should you need to rebuild your property, check if you have the right level of insurance.
You may be paying more than necessary if you have insured more than it would cost.
You can have the option to pay your premiums with the cost spread out by direct debit or annually. Paying one annual lump sum is usually cheaper.
If you need help with finance and financial resources, MyFi has you covered with the right financial service — customised for you!
Note: MyFi and other sources of finance are options that should only be used for once off funding requirements.