How to get a better deal for insurance, power and broadband

We asked members and supporters, and the Consumer NZ team, whether they had switched these essential services and saved money.

We reckon loyalty doesn’t pay, instead you should be shopping around to get a better deal. For the sake of 30 minutes online, or a 10-minute phone call, you could save hundreds.

Get cheaper car, house and contents insurance

Consumer member Marcel changed his insurance provider back in October because of the increasing cost.

“We had been with our insurer for about 30 years, but their charges have been steadily increasing each year. We are now with a new insurer for our house, contents and two cars which has saved us almost $1,000 for a year’s cover.”

Valerie, a Consumer member, also changed her house, contents, and car insurer after she had a run-in with her insurer following her husband’s death.

She tried to change the insurance ownership from their joint account to her name only, and the insurer requested, what her lawyer considered to be, over-the-top documentation. However, they let her switch providers. Switching has saved her $300 in annual premiums.

“I wish I’d gone there sooner,” Valerie said.

Between 75% and 78% of respondents to our insurance satisfaction survey have been with their car, house or contents insurer for over 5 years.

That’s a lot of loyal customers at a time of rising insurance costs. In the past 10 years, house insurance has increased 97% and contents has gone up 48%, according to Stats NZ.

Our own surveying has found car insurance premiums have gone up by as much as 38% since 2021.

Yet, most respondents to our insurance satisfaction survey were unlikely to change insurer in the next year (between 59% and 66%).

Sweeteners to switch were on offer when we looked at the main insurers online. At AA Insurance you could grab a $150 Prezzy Card for signing up for its house and contents insurance, while AMI were offering $200. Trade Me were offering a saving of up to 20% for buying multiple policies.

Get the lowdown on the right insurance for you

Check out Consumer NZ house and contents insurance and car insurance buying guides to get lowdown on the types of insurance, and compare prices across providers. You can also visit Best and Worst insurers to find out which providers have the most satisfied customers.

Four questions to ask your insurer at renewal time

1. How is my premium being calculated?
2. Have all the discounts been applied?
3. Is this policy still right for me?
4. What are the implications if I change policy and/or provider?

Shop around for a better deal on power

A recent house move motivated Consumer team member Karina to shop around for a cheaper power deal.

She’d been with her provider for about 4 years. Initially, she thought the provider was great because she could buy power packs and deals online, and the plan included a free first weekend every month.

“Over time, our bill started getting a bit more expensive – about $350 a month with four people at home, most of the time.

"But we weren’t on top of everything and didn’t buy many power packs, and we also forgot about the free weekends as our schedules changed.”

Karina’s new home has gas, and her existing provider didn’t offer gas pricing, so she decided it was a good time to shop around.

Her new plan, which includes gas, is about $200 a month (with three people in a four-bedroom house).

Just 11% of respondents to our latest energy retailers survey switched providers when they moved house. Most switched because of high prices (53%) or they were offered a better deal by a competitor (42%).

Paul Fuge, our resident electricity expert and Powerswitch manager, said a common mistake people make is sticking with plans that no longer match their household’s circumstances.

“If your household circumstances change, it’s a good idea to check you’re still on the right plan,” he said.

It is estimated that around 63% of households have been with their current power provider for over 3 years. Another quarter have stuck with the same power company for more than 10.

How to save on your power bill

• Check Powerswitch to see whether you’re on the best deal. Chances are you’ll get a better deal and can hit “switch” to start the process to change your power retailer on powerswitch.org.nz.
• Visit consumer.org.nz for best and worst power companies to find out which providers have the most satisfied customers.

Switch or haggle for a cheaper Broadband deal

Consumer team member, Angela*, has switched broadband providers and will save just over $300 in the first 12 months.

She wasn’t happy with the service at her previous provider. There were connectivity issues, which meant she had to upgrade plans which cost her more. Switching providers meant a better fibre plan for her needs as well as a saving.

Angela is now paying $60 a month, with the first 3 months 50% off, saving her just over $300.

If you’re happy with the service at your current provider, but not the price, it pays to haggle.

Our consumer advocate Aneleise was offered a deal with a new provider for $75 a month. It was $25 cheaper than her provider was offering, but not quite the fibre speed her family needs.

So, she gave her provider a call, mentioned the better deal elsewhere, and it came to the party. Rather than paying $100.95 a month, Aneleise is now paying $80.75.

For the sake of a 10-minute phone call, she’s saved about $240 a year.

Despite better deals being on offer, most of us are reluctant to switch. Four out of ten respondents to our annual internet provider survey have been with their provider for 5 years or more.

Of those who stick with the same provider, 32% think it’s too much effort to change, while another 28% aren’t sure of getting a better deal.

Yet, of those that have switched provider in the past 12 months, 64% said it was very easy. The main motivation for switching was finding a better deal (42%) and finding a better plan for their needs (28%).

Tips for choosing an internet provider

• Assess how much internet your household uses. A single person who is checking emails and browsing socials won’t need as much, or as fast, a connection as a family of four using streaming services.
• Fibre or wireless? Generally, a fibre (ultra-fast broadband) connection is faster than ADSL and VDSL broadband connections. The latter also have limitations with speed because they work off the old copper telephone lines. While wireless connections use radio waves, the same tech used for mobile phones, and are usually a good option for those who can’t access other internet technology.
• Shop around for deals. Most internet providers have a range of plans on their websites so you can compare.
• Visit consumer.org.nz for best and worst internet providers to find out which providers have the most satisfied customers.

*Not her real name.