Premiums for most of our consumer profiles have increased by over 10 percent since our last survey – a result of insurers looking to recover costs from the first Christchurch earthquake. And now Christchurch has suffered a much more devastating second earthquake, which will put even more pressure on premiums: the repair bill is likely to run to tens of billions of dollars.
The major factors in these soaring premiums are high number of claims, escalating building costs, and the extreme nature of recent natural disasters. Premiums will continue to rise if insurance companies are to stay in business after paying out for major claims from the Christchurch earthquakes.
People in the Christchurch area may have to pay additional excesses if they made more than one claim after the two major earthquakes. A related issue is whether insurance companies will be willing to cover homes in some affected areas when policies come up for renewal – and by how much premiums will increase if cover is available.
We look at the issues involved in insuring your property against natural disasters in our Natural disaster insurance report.
Several companies haven’t changed their cover since last year but their premiums have gone north. Quotes from most of the companies for our “young single person” profile were similar to last year but Westpac’s increased by nearly 30 percent (going from $58 to $73 per month).
Read what our members have to say close
To save money on essentials and make buying decisions easy, you can't go past Consumer. We're proud to have over 65,000 members all enjoying our independent information online or in Consumer magazine.
Here's what some of them say...
"Just wanted to let you know that I find your site excellent! Easy to find my way around, everything at my fingertips - just a click away.
I only took out a 3 month membership as I wasn't sure but it is actually really easy to use and if I want it on paper I can print the
reports. Thanks again".
Denise Watkinson - Waitakere
"My mother (74) got a renewal letter from her insurance company for her car insurance, wanting $570. After reading
your article on car insurance, I contacted one of the companies you recommended, who quoted her $318 for the same
level of cover. I just wanted to stay thank you very much for your article, as it has saved my mother a substantial amount of money".
Adrian Lane - Kapiti Coast
"I've been a member to the magazine since 1997 and enjoy reading it a lot. I've found lots of helpful information on different issues...
Thank you for being so helpful".
Peter Kovalenko - Porirua
"I have been a member of the Consumer NZ for 20 or more years and have enjoyed much reliable advice.
I turn to their tests before making significant purchases".
Lyndal Print – Auckland
Join Consumer now and make your decisions easy on a huge range of products and services
- Over 500 reports, plus interactive tools and calculators
- Independent advice from NZ's trusted source of information
- Join over 65,000 members who help us get all NZers a fairer deal
from just $28
Previous: Cover for renting
