New Zealanders are spending less of their income on vehicle insurance, than they were a year ago

Stats NZ figures show vehicle insurance premiums have risen 1.7 percent in a year, while wages and salaries rose 2.8.

That's a stark contrast to the year before, when premiums rose 23.7 percent, while wages and salaries only rose 5.5.

It follows a sharp drop in new vehicle sales.

The Insurance Council says increased competition and lower claims volumes are also being passed on to consumers.