The cost of your insurance is made up of three components:

• The AA Insurance premium. This considers risk factors of what you are insuring. For example, the size and materials that your home is made of and where it's located in the country or the year, make and model of your car and the drivers using it.
• The second component is reinsurance costs. This is additional financial cover that enables us to make sure there are enough funds to pay all insurance claims in the case of a large-scale event.
• The final component is taxes, fees and levies collected by all insurance companies on behalf of the government for example GST, Fire and Emergency Services NZ (FENZ) Levy and Earthquake Commission (EQC) Levy.