Car Insurance NZ: 14 Proven Ways to Cut Your Premium (2025)
Car insurance is essential, but paying over the odds is not. Use these New Zealand–specific tips to help reduce your premium without sacrificing the cover you need. Every insurer prices risk differently, so try a few of these ideas and compare quotes before you renew.
• Typical NZ premiums vary by vehicle, driver and cover level
• Biggest savings: compare at least 3 quotes, pick the right excess
• Common mistake: leaving young/occasional drivers on your policy
Planning a purchase? Browse our stock or apply for finance, we can discuss insurance considerations when you’re ready.
1) Compare Multiple Quotes
Do not auto renew. Get quotes from several NZ insurers and brokers. Price, excess options, and included benefits (windscreen, roadside, courtesy car) vary widely.
2) Choose a Higher Excess (If You Can Afford It)
A higher voluntary excess usually lowers your premium. Pick a level you could realistically pay if you need to claim.
3) List Named Drivers Only
Limiting your policy to specific, experienced drivers can reduce costs. Remove occasional drivers who no longer use the vehicle.
4) Consider a Low-Kilometre Policy
Some NZ insurers offer lower premiums for vehicles that travel fewer kms per year. If you mostly commute locally, this can help.
5) Improve Vehicle Security
Garaging overnight, adding an alarm/immobiliser, and using factory security features can lower theft risk and premium.
6) Bundle Policies
Multi-policy discounts (car + home/contents, or multiple vehicles) are common. Ask your provider about package rates.
7) Pay Annually
Paying annually instead of monthly can avoid instalment fees and shave the overall cost.
8) Keep Your Details Current
Update address, regular driver info, business vs private use, and garaging. Correct data can avoid risk loadings.
9) Pick the Right Cover Level
Comprehensive offers the most protection, but Third Party, Fire & Theft may suit lower-value cars. Match cover to the vehicle’s value and your risk tolerance.
10) Add Young Drivers Only When Needed
Younger drivers raise premiums. If they have their own car or no longer use yours, remove them from your policy.
11) Maintain a Clean Record
Safe driving pays off. Avoid small claims you could self-fund; a claim-free history often reduces premiums over time.
12) Choose Cars That Are Cheaper to Insure
Insurance costs differ by model. Mainstream vehicles with good safety features and easy parts availability typically cost less to insure. Considering an upgrade? See why customers buy from Dave Allen Motors.
13) Consider Telematics/Driver Apps (Where Available)
Some insurers offer usage-based or driver-behaviour programmes that can reward careful driving with lower premiums.
14) Review Optional Add-Ons
Windscreen, rental car, roadside, and excess-free benefits are useful, but if you do not need them, removing extras can reduce cost.
Before You Buy a Car, Check the Insurance
Premiums are part of your total cost of ownership. Use our finance calculator to plan repayments, then confirm insurance quotes for the vehicles you are considering. If you’re planning a low or no deposit finance purchase, get an insurance estimate first.
Need Advice?
Our team helps customers choose the right car and budget for running costs. Contact us or browse our stock, and we can point you in the right direction.