Insurance excess calculator
See how choosing a higher or lower excess trades off against your premium — and how many claim-free years it takes to break even.
What this means for you
Fill in the fields above to see how the excess change affects your premium.
Compare excess levels
See the estimated premium at a few common excess levels.
| Excess | Estimated premium |
|---|---|
| $250 | $0 |
| $500 | $0 |
| $1,000 | $0 |
| $2,000 | $0 |
Assumptions & sources
A simplified, generalised model of how excess levels typically relate to premium pricing across NZ general insurance policies.
1 July 2026
17 July 2026
New premium = current premium × (1 − (excess change ÷ 100) × sensitivity %). Break-even years = extra excess per claim ÷ annual savings.
A straight-line estimate of premium change and a simple break-even calculation.
Your actual insurer's specific pricing curve (which is rarely perfectly linear), how often you're likely to claim, and any policy minimums or maximums on excess.
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Read article →How does excess affect your premium?
A higher excess means you cover more of a small claim yourself, so the insurer takes on less risk and charges a lower premium in exchange. It's most beneficial for people who rarely claim and could comfortably cover the excess out of pocket if needed.
Should you choose a higher excess?
It depends on your claims frequency and your cash buffer. If the annual premium savings would outweigh the extra cost over the time you'd realistically expect between claims, a higher excess can make sense. If a large excess would strain your finances at claim time, a lower excess and higher premium may be the safer trade.
Example: Raising excess from $500 to $1,500 on a $1,200 premium
Talia's current premium is $1,200 a year with a $500 excess. She's considering raising it to $1,500.
At an assumed 3% premium change per $100 of excess, that $1,000 increase in excess would lower her premium by approximately $360 a year, to approximately $840.
If she makes a claim, she'd pay $1,000 more out of pocket than before. Dividing that by her $360 annual saving gives a break-even point of approximately 2.8 years.
If Talia goes longer than 2.8 years between claims, the higher excess saves her money overall; if she claims more often than that, the lower excess would have worked out cheaper.
Frequently asked questions
A higher excess generally lowers your premium, since you're taking on more of the cost of small claims yourself. A lower excess raises your premium but reduces what you pay out of pocket at claim time.
If you rarely claim and can comfortably afford the excess out of pocket, a higher excess with a lower ongoing premium often works out ahead. If you'd struggle to cover a large excess at claim time, a lower excess may be the safer choice even at a higher premium.
Most insurers require the excess to be paid before or as part of settling a claim — if you can't cover it, the claim may be delayed or reduced. This is why it's worth setting an excess you could genuinely afford in a worst-case scenario, not just the one that minimises your premium.
