Car owners weigh up third-party insurance as premiums keep rising

Car insurance insurance premiums have surged after a spate of car thefts. Photo / NZME

• Rising car insurance premiums have led more people to consider switching to third-party coverage.
• Comprehensive car insurance quotes have increased 41% in two years, and home insurance by 31%.
• Quashed reports a 46% increase in interest for third-party insurance options.

More people are considering changing their car insurance policy or switching to third-party coverage as premiums continue to rise.

Latest data from insurance comparison website Quashed shows the average quote for comprehensive car insurance has increased 41% in two years.

Average quotes for home and contents insurance have risen 31% over the same period.

Quashed chief executive Justin Lim said more users were looking into other options, including third party, as they face a “conundrum” between cheaper premiums and greater coverage.

“Kiwis have had two, three, four years now of quite significant insurance premium increases. Consumers have learned to adapt to keep insurance affordable,” Lim said.

“We haven’t quite seen the corresponding sort of switch across to third-party car insurance yet, but we have seen a 46% increase in interest.”

Prices continue to vary between providers. Five insurers offering quotes on a 2020 Toyota Corolla in Auckland ranged from $960 to $1790.

Changing coverage – including the excess and sum insured amounts – could cut premiums by up to a third, to as low as $673 in the case of the Toyota Corolla.

Switching to third-party insurance could reduce premiums by up to two-thirds, with third-party fire and theft cover for the Corolla being as low as $580.

The Insurance Council said many people were buying new-model cars that were more expensive to repair and replace.

On the other end of the spectrum, cheaper, older cars have been targeted with a spate of vehicle thefts. AMI data show stolen vehicle claims dropped slightly last year, but are still three times higher than five years ago.

Quashed figures show premiums average $1600 in Auckland, where car theft is particularly common.

That compares to $1325 nationally, $1230 in Canterbury and $1155 in Wellington.

People in their 30s and those over 60 have seen their premiums rise by almost 45% over the past two years.

Young people, aged 18 to 24, saw their premiums rise by just 2% over the period.