A new survey from Consumer NZ has found that car insurance premiums have risen markedly since 2023, with increases as high as 46% for some demographics.
The findings underscored significant pricing adjustments across the sector, driven by external pressures and internal risk modelling practices.
The consumer organisation’s latest research compared premiums across nine insurers for four different age brackets. The data revealed a wide variation in outcomes. The highest median increase – 46% – was for young males residing in Christchurch, while the lowest was just 0.6% for a family of four based in Auckland.
Vanessa Pratley, investigative writer at Consumer NZ, noted that factors such as inflation, location-based risk, and age and gender are all shaping how insurers calculate premiums.
“Every insurer will base its premiums on risk. How much you pay will depend on things like whether you live in a flood-prone area, the car you drive, and even your age and gender,” she said. “And because not all insurers are equal – which is to say they use their own risk assessments – you might be more or less of a risk to one provider or another.”
With cost increases affecting a broad cross-section of drivers, brokers and insurance advisers may encounter a heightened appetite for switching providers.
Consumer NZ’s analysis found that the potential annual savings from changing insurers ranged between $481 and $1,296.
This trend is consistent with wider shifts in the Asia-Pacific region, where GlobalData projects a compound annual growth rate of 5.6% for motor insurance through 2029.
Pratley said that while there are cancellation fees in some cases, the financial incentive to switch could outweigh the costs for many consumers – highlighting the role of brokers in finding the best deal based on their clients’ needs.
Beyond pricing, the report highlighted inconsistencies in what is included under standard policy terms. Features such as towing coverage or replacement keys are included in some base policies but treated as add-ons by others.
In parallel, GlobalData noted that insurers across the region are shifting toward more tailored, data-driven models. These include usage-based insurance (UBI) products like Pay As You Drive (PAYD), which are becoming more prevalent in markets such as Singapore, Malaysia, South Korea, and India. However, regulatory constraints in markets like Taiwan and China continue to limit pricing flexibility, even as digital and AI-driven underwriting tools gain traction.
In addition to its pricing survey, Consumer NZ also evaluated consumer satisfaction with insurers.
FMG and MAS were the only providers to receive the People’s Choice award in 2025. While such rankings are not a direct reflection of claims performance, they do indicate broader customer sentiment and service quality – factors that influence retention and brand loyalty.
“No one takes out insurance cover for fun. It’s an important financial safety net, for example, if you accidentally swing your car into a parked Tesla. If the right protection isn’t in place for you, you could find yourself in a real pickle,” Pratley said. “The experience you get from your insurance provider, especially how they treat you, should be an important consideration, too.”
