Home premium AA home Insurance - went up 25% in one year

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kingdragonfly

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#300628 23-Sep-2022 09:52

I live in New Plymouth. I owe less than $100,000 on my home.

There has never been a claim.

I'm at maximum excess of $1,000; they won't go any higher.

According to AA Insurance, in one year my house value increased by 18%.

However my premium went up 25%.

They have all my insurance business, and are unwilling to lower the bill.

Any recommendations on less expensive insurance?

wellygary

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#2972000 23-Sep-2022 10:01

Insurance companies are getting hammered by natural disaster claims at the moment, I'm not sure you will find the others are much/any cheaper.

Also from 1 October 2022 the EQC cap rises to 300K and the levy goes from $300 to $480 + GST, so that's a ~$200 out of the gate, before you even start.

We've just got ours and we're about 20% up, but we are gonna have to wear it... along with councils spending like drunken sailors, the on going cost of owning a house just continues to get more expensive ...

empacher48

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#2972011 23-Sep-2022 10:19

Also remember the cost of repairing or replacing your home has significantly increased over the last 12 months, not only in building supplies, but also labour.

I’m also with AA insurance and had a significant premium increase, but when I ran the Cordell calculator again on the house, the increase in the house value on the policy was in line with what the calculator said.

E3xtc

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#2972160 23-Sep-2022 14:14

Same same. I am with AMI and our renewals just came through and I had to do a double take. I grabbed a few additional quotes from other companies and they were seemingly consistent. I noticed also the AMI messaging included a reference to the increase in claims and costs associated with rebuilds. *shrug. Squeeze a little more out of the stone.

kingdragonfly

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#2972461 24-Sep-2022 11:04

So it's worth shopping around.

AA Insurance in my city was the the second most expensive. Only Amp was more expensive

Note I actually got quotes for a tiny bit more house value 106%. AA won't adjust rebuild cost up or down.

Honestly I also got quite a bit of attitude from AA insurance. After 15 minutes of asking if anyway to reduce the bill, and even getting a supervisor involved, they just acted like I was insane to ask. Apparantly I was the first customer in the history of the company to try to get suggestions to reduce the premium.

AA Insurance ... 1,752.67

Listed from lowest to highest
----------------------------
Initio ... $1,231.32 ... 29.7% savings
Ami ... $1,249.06 ... 28.7%
Tower ... $1,376.11 ... 21.5%
Trademe (Tower) ... $1,431.49 ... 18.3%
State ... $1,453.81 ... 17.1%
Amp ... $1,784 ... -1.8% more expensive than AA
----------------------------
Tower, Trademe, State, and Amp included discount for car

And speaking of cars, compared to AA insurance
----------------------------
Tower ... 71% savings
Trademe (Tower)... 62%
Ami ... 60%
State ... 13%

alasta

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#2972470 24-Sep-2022 12:03

It's really interesting that AMI is cheaper than State. I thought that IAG had positioned State as their low cost brand, and AMI as the premium offering.

kingdragonfly

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#2972471 24-Sep-2022 12:13

Initio is on-line only, and founded 11 years ago.

So I think I'll go with Ami on house insurance, and Ami/Tower on car insurance.

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Linux

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#2972472 24-Sep-2022 12:24

Cove insurance offers great car insurance rates

https://www.coveinsurance.co.nz/

kingdragonfly

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#2972478 24-Sep-2022 12:43

Linux, thanks for the tip. Cove was 5% cheaper than my current AA

compound

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#2972481 24-Sep-2022 13:17

Just got our renewal letter from AA. 22% increase.

Linux

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#2972482 24-Sep-2022 13:21

kingdragonfly: Linux, thanks for the tip. Cove was 5% cheaper than my current AA

@kingdragonfly Great customer service to (I am not linked to this business in anyway at all)

nickb800

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#2972486 24-Sep-2022 14:17

Residential construction inflation was 18% in the past year so that will translate fairly directly to premiums

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Wheelbarrow01

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#2973246 26-Sep-2022 20:42

We have our bach insured with Initio and we just renewed for the coming year. Because we scraped in prior to the rise in EQC levy, our premium only went up $13, but we increased coverage from $420k to $440k. Yes they are online only but fully underwritten by NZI and I have found the online portal easy to use, and they are very transparent on pricing.

It's my understanding that anyone who pays their premium yearly, and who renews before Oct 1, your coming year's premium will be charged without the EQC levy rise. However anyone who pays fortnightly/monthly etc will be hit with the EQC levy rise included on their installments immediately after Oct 1.

Unfortunately our home insurance isn't due for renewal until December so we'll get slugged with the EQC rise on that one. I tried to shop around last week but most other insurers asked for a builders report to confirm no new earthquake damage since the last major event here in Christchurch. The cost of any such builder report far outweighs any potential saving in switching companies, so looks like I am stuck with State for the home policy.