What does this mean?
Frequently asked questions
You’ll find answers for many of your questions here. If you have a more specific question or want more detail, please contact us.
The New Zealand Fire Service, National Rural Fire Authority and multiple other rural fire authorities are joining together to become one organisation – Fire and Emergency New Zealand (FENZ). In order to establish this organisation and maintain the current level of services provided, the rates of levy on fire insurance contracts are being increased by the Government.
The increase in your insurance premium will depend on the type and number of policies you hold, and this will be clearly outlined on your policy documents. We’ve summarised the impact the changes will have in a couple of handy diagrams.
The increase in Fire Service Levy will take effect 1 July 2017, applying to all new insurance policies as well as policies renewing after this date. The NZ Government are looking to pass a subsequent Bill which may have further impacts post 31 December 2018.
Unless you have Third Party Only car insurance, which doesn’t include cover for fire, then yes, the levy will apply to all policies.
Because you are covered for fire, the increased rate will apply once your policy renews after 1 July 2017. If you make a change to your sum insured mid-term, your premium will be adjusted based on the new levy.
The NZ Government has increased the Fire Service Levy industry wide, so this will apply to all insurance companies and policies in New Zealand.
If you’re set up to pay for your policy by direct debit, you don’t need to pay the increase up front or in one go, this will be spread over your fortnightly or monthly instalment amounts.
What you pay for your insurance depends on the type of policy you hold. For example, a Home insurance policy is made up of a base company premium with the addition of Goods and Services tax, fees that go to the Earthquake Commission, and levies imposed by the Government for fire services.
If you’re concerned about the cost of your insurance, there are things you can do to keep this down – for example, removing optional benefits and/or opting for a higher excess will reduce your total premium. You’ll also pay less if you choose to pay annually.
AA Insurance has an obligation to protect our customers. Therefore, while we do offer flexibility and optional benefits surrounding accidental damage, we will not remove fire cover from your policy due to the extent of loss this can cause. Find out more about our policies.