More New Zealanders buy general insurance policies than life cover, with a “common misconception” around the cost of life insurance seen as a major reason for the difference.

About 88% of respondents to the survey by sales website Trade Me have motor insurance, while 74% have house and contents cover and 51% life insurance.

The numbers are unchanged from a study four years ago.

About 20% of survey respondents say life insurance is not important to them, compared with 4% for motor and 5% for house and contents.

Some 86% say motor cover is important or very important, while only 52% say the same about life.

Trade Me Head of Insurance Jaime Monaghan says there is a common misconception that life insurance is very expensive.

Millennials are the most underinsured, with only 22% holding life policies. About 71% hold motor insurance and 29% house and contents.

“We’re concerned too many New Zealanders simply don’t want to think about the what-ifs,” Ms Monaghan said.

About 63% of respondents buy insurance online, making it the most common channel.