Think You’re Paying Too Much for Insurance? 5 Ways to Save

Insurance is one of those things everyone knows they should have. But it can also feel like another bill quietly draining your bank account every month.

The good news is that most people can reduce what they’re paying without sacrificing the protection they actually need.

The key is reviewing three things:

• Your cover – how much the policy pays if something happens
• Your excess – what you pay yourself before the insurer pays
• Your premium – the regular cost of the policy

Here are five practical ways people in New Zealand often reduce their insurance costs.

1. Look at Bundling Your Policies

When you pay for insurance across multiple policies, it’s easy to lose track of the total cost.

Many insurers offer package discounts when certain policies are held together. For example:

• Life insurance
• Health insurance
• Mortgage or income protection cover

Bundling these together can sometimes reduce the overall premium.

At Buffer, we compare options across multiple insurers to see whether package discounts make sense for your situation.

2. Review Your Add-On Benefits

Insurance policies often come with optional extras.

These add-on benefits can be valuable, but they can also increase your premium quickly.

Examples might include:

• additional trauma benefits
• specialist cover options
• optional policy upgrades

The question to ask is simple: Will this actually matter to me if something happens?

If the answer is no, removing unnecessary extras can lower the cost of your policy.

3. Adjust Your Excess

With some types of insurance, particularly health insurance, choosing a higher excess can reduce your premium.

An excess is the amount you agree to pay yourself before the insurer contributes to a claim.

For example:

• Lower excess → higher premium
• Higher excess → lower premium

This approach works best if you’re comfortable covering the excess if you ever needed to claim.

4. Compare Options Through a Broker

Insurance policies can vary significantly between providers.

If you go directly to an insurer, you’ll only see the products that company offers.

A broker can compare policies across multiple insurers to help find cover that fits your needs and budget.

At Buffer, our licensed advisers look at a range of insurers and explain the differences so you can make a confident decision.

5. Check How You’re Paying

The way you pay your premium can also affect the cost.

Policies are usually paid fortnightly or monthly, and direct debit is often the lowest-cost option.

If you’re paying by credit card, it’s worth checking whether your card offers rewards such as:

• Airpoints
• Flybuys
• cashback or similar schemes

These won’t reduce the premium itself, but they can help you get more value from payments you’re already making.

The Bottom Line

Insurance shouldn’t cost more than it needs to.

A simple review of your policies can often reveal ways to reduce premiums while keeping the protection that actually matters.

If you’d like a second opinion on your cover, we’re happy to help.

You can request a free insurance review with one of our licensed advisers and see whether there are better options available.

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