The premium you pay can be influenced by a range of factors, including your location, the materials used to construct your home, your sum insured, when your home was built, the number and types of claims we receive and more. Another portion of your premium goes towards taxes and levies that we collect on behalf of Government agencies.
Part of the premium we charge also goes towards paying our own insurance premium for reinsurance. Recently, increasing reinsurance costs have impacted premiums across the insurance industry. This has been influenced by the significant number of claims we received this past year due to extreme weather events, including the North Island floods and Cyclone Gabrielle. As a result of these types of events, and even past events such as earthquakes, reinsurers are changing how they view New Zealand and the costs being charged to insurers, which means AA Insurance’s reinsurance costs have increased significantly.
Additionally, we’re working to update our pricing so it more accurately reflects your circumstances. This means customers that are in areas that are at a higher risk of weather events and/or earthquakes could pay higher premiums, and vice versa.
The above factors mean that most of our customers will see a premium increase on their policies at their next renewal. We want to assure you that we’re here to help provide information about your policy options so that you can make decisions about the suitability of your cover for your insurance and budget needs.
You can find out more about what influences your insurance premium here. We also have more information available on how you can look at reducing your home premium here or contents premium here, if needed.
If you’d prefer to discuss your policy in more detail, please get in touch and our team will be happy to help.