1 in 3 Say Home and Contents Insurance a Luxury

4 June 2013

Survey: 1 in 3 Say Home and Contents Insurance a Luxury

Auckland, 4 June 2013 – A new nationwide survey examining consumer satisfaction with home and contents insurance, shows that while nearly all (87%) say their level of cover is up to date, a minority classify insurance as a luxury.

Following a series of natural disasters at home and abroad in the past two years, insurance companies faced with increased premiums from re-insurers passed these costs onto customers. In New Zealand, this equated to premium increases of around 30% (on average) for home and contents policies.

Consumers are feeling the pinch, says Derek Bonnar, Canstar New Zealand General Manager.

“Sixty per cent in the survey felt they were paying too much for their home and contents insurance, and 17% have reduced their cover due to financial constraints.

“More concerning is the one third of respondents that regard their current policy as a luxury. Home and contents insurance can be one of those grudge purchases that we hope to never use, but that everybody should have.

“I believe that wherever possible New Zealanders should insure their home and belongings. With the price rises we’ve had and possibly more on the way, it makes sense for consumers to find the best deal they can.”

Canstar Blue encourages consumers to shop around, compare quotes and talk to their current provider. While premiums are important consumers should also consider other non-financial factors – such as simple easy to follow processes, plain English policies and communication and friendly customer service - that reflect how easy their provider is to deal with.

To help reduce the effect of future premium rises, Canstar Blue suggests the following:

1. Don’t just pay your premium renewal – It is important to shop around. You might be surprised at what you find

2. Ask for a loyalty discount – bringing all of your insurance business to the one provider may entitle you to a discount

3. Ask for an age discount – some providers over discounts to over 50s and over 60s. If you don’t ask, you might not get

4. Choose a high excess if you can afford it – you can lower the cost of premiums by choosing to pay a higher excess in the event of a claim. But, it is not worth having cheap cover if you can’t afford to make a claim, so ensure you have ready access to your nominated excess funds at all times

5. Discount for safety features – if you have a monitored alarm, deadlocks, window locks or smoke alarms, find out if these will reduce your premium

AA Insurance’s customers proved to be the most satisfied, says Bonnar.

“AA Insurance scored top marks in ease of claim and speed of response, two areas that are really important to customers. When customers have to deal with their

insurance provider, being speedy and good to deal with can make all the difference.”

The survey measured consumer satisfaction in seven categories:

1. Value for money

2. Ease of claim

3. Process

4. Speed of response

5. Quality of service

6. Communication

7. Overall satisfaction

About the survey

Canstar Blue commissions Your Source to regularly survey 2,500 New Zealand consumers to measure their satisfaction across a range of products and services.

The outcomes reported here are the results from a survey of 621 consumers within the survey group who currently have home and contents insurance and have made a claim in the last three years.

Age Groups:

Gen Y: 18-29
Gen X: 30-44
Baby Boomers: 45+

To view the full results of the Canstar Blue survey go to: www.canstarblue.co.nz

ENDS

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