New Zealanders are forking out less of their income on car insurance than they were a year ago, but still far more than they were three years ago.

Latest Stats NZ data shows vehicle insurance premiums have increased 1.7% in the year to June, while wages and salaries have increased 2.8%.

Figures provided to Newstalk ZB by insurance comparison website Quashed shows the average quote for comprehensive car insurance on the site has dropped 6% over the past year.

However, the Stats NZ data shows premiums remain 31.7% higher than three years ago, while wages and salaries have increased 13.8% over the same period.

The average quote on Quashed has increased 45% over that three year period, with more people looking into third-party-only policies.

Vehicle insurance premiums increased 23.7% in the year to June last year, while wages and salaries only rose 5.5%.

Insurance Council chief executive Kris Faafoi said at the time that several factors were contributing to rising premiums.

These included the rising cost of repairing vehicles, the number of potholes created by bad weather, and the thousands of cars written off after the Auckland Anniversary Floods and Cyclone Gabrielle.

Faafoi said more people had also been opting for pricier, later model cars that could be more expensive to replace and repair.

New vehicle sales have since slowed, with sales recorded by the Motor Industry Association in the year to June about a quarter lower than the same period two years earlier.

An Insurance Council spokesperson said several factors, including “increased competition and lower claims volumes”, may have been passed on to consumers.

Quashed Chief Executive Justin Lim said it paid to shop around for the right policy and provider.

“The savings are still there and significant. Close to 85% of our users on Quashed are finding roughly $400 a year in savings on car insurance," he said.

Michael Sergel is Newstalk ZB’s business reporter, covering the daily life of business and the business of daily life. He’s been covering business, politics, local government and consumer affairs for over a decade.