However, just like insurer’s can make more insurance they can also make less. How do they do this? They change their terms and conditions. By changing their terms and conditions insurers can add cover which sounds good but is not worth much or remove cover which is costly. Sometimes, to be really tricky, insurers will define cover in a certain way, which may mean the common sense definition does not apply.
If the insurer is just covering you for 35% less or worse 40% less, you may wish to reconsider. There are some good reasons why some insurers are cheaper, for instance:
- Tower’s insurance SmartDriver can rate your risk better
- Progressive (not in NZ yet) is 100% online, cutting selling and administration costs
- PeerCover lets you insure smarter by rating on things that an insurer can’t and sidesteps regulation
- Some health insurers are investing in wearables like SleepWakeApp
- AIA's wellness program (not in NZ yet) through Vitality
So, if an insurer offering a 35% saving on your insurance – the question you should ask first is how.