Why do more Kiwis insure their cars than their lives?
A new report from the Financial Services Council (FSC) shows that when it comes to insurance, most New Zealanders are far more likely to protect their stuff than themselves.
According to the July 2025 Money & You survey:
- 75% of people have car insurance, but only 34% have life insurance.
- 32.5% have health insurance, and just 12% have income protection.
- The top reason people cancel or avoid cover? The rising cost of living.
- 1 in 5 say they’d only take out insurance after their health declines — a misunderstanding of how insurance works.
The report also found that younger people (under 30) were the least likely to have life or income protection, and were also less likely than older age groups to rate their understanding of insurance products as “good” or “very good”. And while most New Zealanders insure their belongings, fewer than half have cover that would support them or their family in the event of illness, injury or death.
What this means for you
It’s natural to want to protect the things we can see, such as a car, a home, a phone. But the truth is, your most valuable asset is often your ability to earn an income and care for your loved ones.
Health and life insurance might not feel urgent, but they can make a big difference when life doesn’t go to plan, giving you faster access to care, a financial safety net, or the ability to keep your household running after a major event.
Cost doesn’t have to be a barrier
If premiums are a concern, you’re not alone. Nearly half of those who cancelled cover said affordability was the reason. But there can be ways to tailor your cover to fit your budget, or focus on the areas that matter most for your situation.
A simple review can help identify gaps, clarify what you’re really paying for, and make sure you’re not over- or under-insured.
Ready for a check-in?
If you haven’t looked at your personal insurance in a while, now could be a good time to take stock. We’re always here to help you weigh up your options and ensure your protection is working for you, and not just your stuff.
The information contained in this publication is intended for general guidance and information only. It has not been personally prepared for you. Therefore, you should not act on this information if you have not considered the appropriateness of this information to your personal objectives, financial situation and needs. You should consult with us before making any investment decision. Historical market performance may not be indicative of future market performance.