Insurance costs have been a major pain point for many households in recent years, but data from insurers shows many of us are finding solutions.It was reported mid last year that insurance had the largest increase of any item in the consumer price index since 2000, up 916 percent.Insurance experts told RNZ that some health insurance policies lifted 50 percent last year.But while there are signs that premium rises may be moderating, some policyholders are finding other ways to reduce their costs.Higher excessesGenerally, if your insurance policy has a higher excess, you may be able to pay lower premiums.Excess is the amount that a policy-holder pays when they make a claim, before the insurer chips in the rest.Vero said its research showed 57 percent of the 1172 insured homeowners it surveyed had home insurance excesses of more than $500, even though "standard" was $300 to $500.Nichola Young, executive manager of pricing and underwriting, said Vero had noticed customers had been opting for higher excesses since mid-2022.She said more people were choosing an excess of $1000 excess, while $400 excesses were becoming less popular.She said a very high excess, for example of more than $5000, could reduce the cost of an average premium by about $300 a year, although other factors would affect it."We've seen more customers voluntarily increasing their excess, and we noticed that this shift coincided with broader cost-of-living pressures."Vero's research found affordability was the main driver for the higher excesses, and 66 percent of homeowners who had increased their excesses said they did so to lower the cost of their insurance."It shows that our customers are making trade-offs to balance the cost of premiums with the level of risk they're willing to carry. The choice ultimately sits with the customer, but the important thing is understanding what that means if you ever need to make a claim."Young said it would not help in every situation."It's important to understand that increasing your excess won't necessarily offset every driver of rising insurance costs. Premium increases in recent years have been influenced by factors such as the growing cost of natural hazards, and increased taxes and levies. If your premium is higher because your home faces greater flood or weather risk, increasing your excess is unlikely to significantly reduce your premium."The research showed 9 percent of people who had a higher excess said it was a temporary measure.Justin Lim, founder of insurance comparison website Quashed, said his site had recorded a 19 percent increase in excesses for house insurance year-on-year, a 14 percent increase for car insurance and 6 percent for contents cover.Changing cover typeLim said people were also looking for cheaper insurance options.He said some vehicle owners were considering third-party covert rather than comprehensive insurance."While most consumers still ultimately purchase comprehensive car insurance, year-on-year growth in comparison activity for third-party was double that of comprehensive. Consumers are actively exploring cheaper, more basic options."Dropping coverSome people are dropping policies completely. Southern Cross reported a drop in membership numbers in the year to June 30, 2025, of 3493 members, bringing total membership to 951,808.The Insurance Council said surveys showed New Zealanders still had relatively high levels of insurance cover overall, and the percentage of homes with house insurance was in the mid-90 percent range.Shopping aroundLim said people could often save money by comparing their options.He said people who looked at what else was on offer could find they could save up to $1500 a year.He said the chances of finding a cheaper policy were eight out of 10 for car cover, seven in 10 for contents, and six in 10 for home insurance.Reducing riskYou may sometimes be able to reduce your insurance costs by reducing the risk to the insurer.For health or life cover, that could mean quitting smoking.For vehicle insurance, you might be able to install an immobiliser or park in a garage rather than on the street.The Insurance Council said home insurance rose only 0.4 percent in the year to March and vehicle insurance was down 2 percent."It's important to note that these are national averages. Individual households may still experience larger premium changes depending on factors such as claims experience, rebuilding costs, vehicle type, property characteristics and local risk profiles."