Kiwi homeowners have found a way to hold their insurance bills almost flat: they are agreeing to pay more themselves when they claim.
The average selected excess on house insurance rose to $1,206 from $984 over the past year, according to insurance comparison platform Quashed, an increase of about 23%. Over the same period, the average house premium rose just 2%, to $2,946 from $2,875, comparing the September 2026 quarter with a year earlier.
Excesses climbed across other covers too. Quashed said selected excesses were up 18% year on year on average. The average contents excess rose to $636 from $542, and the average comprehensive car excess to $507 from $462.
"House insurance was definitely the highest. It makes a lot of sense because when we look at the average house insurance premium, it is much higher than say car or contents insurance," Quashed chief executive Justin Lim said.
The longer view explains why. House premiums have risen 28% over the past three years, an average increase of $643, Quashed said. The average household paying for house, contents and comprehensive car cover now pays $5,067 a year, up 21% over three years.
Year-on-year pressure has eased, and Lim said insurers are competing harder for customers, including through advertising and incentives such as gift cards. "We are seeing a lot more competition in the market," he said. Comparison activity on Quashed, which lists 13 insurers and has been used by at least 100,000 people, is up 40% year on year.
For brokers, the risk sits in what clients do not know. IB NZ reported in July that 42% of insured homeowners did not know their current excess, according to Vero research. Of those who had actively raised theirs, 66% cited cutting their premium as the main reason.
As excesses climb, the useful renewal conversation is about the claim, not the quote. Confirm the client knows their excess, and that they could pay it after a loss.
