Residence and auto insurance anticipated to extend by as much as 10 p.c – New Zealand Herald

The cost of replacing depreciated cars has risen sharply due to the supply chain problems caused by Covid-19. Photo / file

A senior insurance manager predicts that premiums for motor vehicle and household insurance will rise across the board by seven to ten percent in the next year.

Insurers are coming under increasing cost pressure

When asked how these inflationary pressures would affect home and auto insurance premiums, Wright said it was inevitable that insurers would pass these costs on to their customers.

Jeff Wright, Tower's chief financial officer. Photo / fileJeff Wright, Tower's chief financial officer. Photo / file

“More newer vehicles with advanced technology features (e.g. sensors, cameras, etc.) on the road means that the average repair cost for such vehicles is much higher. The repair costs for everyday damage such as windshields and mirrors with this technology have increased significantly. "

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