Your Insurance Premium
What impacts my home &/or contents premium?
When insuring your home and/or contents, we ask several questions to help you determine the cover you need and the associated premium. Some of the key pieces of information that impact your premium are listed below.
The Sum Insured is the most you can claim for any one event unless otherwise stated in your relevant policy document. Often, the extra bit of cover you could need, may not significantly increase your premium. You should make sure it’s up-to-date and will sufficiently cover the rebuild of your home and/or replacement of your contents.
Some areas of New Zealand are more prone to natural disasters or severe weather events and therefore, location can impact premiums. This means insurers need to be disciplined around pricing the properties and areas they cover sustainably.
Certain areas with higher instances of theft and/or vandalism can also have an impact on premiums.
The materials used to build a home will affect the premium charged, particularly as they’re what protects a home and your contents from the outside elements.
The year your property was built could influence how much premium you pay. For example, certain types of construction methods and materials have been shown to impact the likelihood of a claim occurring.
What impacts my car premium?
When insuring your car, we ask several questions to help you determine the cover you need and the associated premium. Some of the key pieces of information that impact your premium are listed below.
The amount your vehicle is insured for affects your premium. Your Agreed Value will usually be adjusted every year at renewal to account for depreciation, in line with the market. For example, luxury vehicles can have higher premiums as they cost more to replace than less expensive vehicles in the event of a total loss.
The type of car you own can have a significant impact on your premium, because the cost and availability of replacement parts can vary based on a vehicle’s make, model and age.
Areas with higher incidences of theft and vandalism could see higher premiums, and more populated areas mean more traffic and an increased likelihood of damage occurring. This is monitored by analysing our claims data.
A driver’s age and experience can affect their likelihood of having an accident or claim. For example, we generally see more experienced drivers with fewer accidents. This is monitored by analysing our claims data.
What influences premium?
As an insurer we have a responsibility to maintain a level of capital to meet our customers’ needs in the event of losses/claims. Throughout this process, we always aim to ensure premiums are set to fairly reflect the risk and the cover provided for our customers. This means striking a balance between pricing policies for specific risk versus pooling that risk and spreading the cost to make insurance more affordable across the board.