Recent findings from the insurance comparison platform Quashed indicate which age demographics have been most significantly affected by rising insurance premiums.
Quashed discovered that individuals aged 40 to 50 are experiencing the largest increases in general insurance premiums, rising by 23% over the past year. Additionally, this age group is paying the highest amount for home insurance, with an average cost of $2,995.
Meanwhile, individuals aged 25 to 30 have experienced the largest rise in home insurance costs over the past two years, with an increase of 49%. They are also facing the highest expenses for contents insurance during this period, which has risen by 43% to reach $888.
Quashed co-founder and chief executive Justin Lim stated that, despite the overall rise in insurance costs, over 90% of Quashed users did not modify the sum insured or excess amounts on their insurance policies when comparing quotes. This indicates that most users are defaulting to a $250 excess for contents insurance, $500 for car insurance, and $1,000 for home insurance.
He noted that adjusting both the sum insured and the excess could lead to annual premium savings of 15% to 20%. This could translate to approximately $978 in savings each year on a household’s overall insurance expenses.
Quashed has also found that house insurance costs in Wellington are now approximately twice as expensive as those in Auckland.
Wellington recorded the highest average annual house insurance cost for the year ending in September, reaching $4,467, significantly surpassing Auckland’s average of $2,014.
The data reveals that not only does Wellington have the highest house insurance costs, but it also faces the steepest contents insurance rates. Conversely, for car insurance, Auckland drivers encounter higher premiums than those in Wellington.