AA Insurance has launched a new Limited Contents product, a cost-effective policy aimed at customers wanting to save on their premium, or for people buying contents insurance for the first time, such as students, renters and younger customers.

The Limited Contents product, which AA Insurance said is a first in New Zealand, offers “new for old” cover with optional benefits which allow additional accidental damage cover for specific items such as mobile phones, laptops, and tablets.

Around 18% of New Zealanders do not currently hold contents insurance, which leaves them vulnerable to losing everything in case of a calamity, said Aaron Dickinson, GM of Strategy for AA Insurance.

He added: “While lower levels of contents cover aren’t new to the market, these covers sometimes limit important items such as technology or change the basis of settlement to market value. We wanted to help look after customers by being flexible to their needs and help protect what’s most important to them.”

Customers who use AA Insurance’s online quoting system will be able to see side-by-side quotes for both Contents and Limited Contents products. This will allow them to compare the benefits, excesses, premiums, and policy coverages and choose the product which best suits their needs.