about Your premiums

What can influence insurance premiums

At Vero we strive to develop insurance policies that are accessible to as many New Zealanders and their businesses as possible. But it’s equally important that they are priced in a sustainable way, ensuring we’re able to support our customers both now and in the long term. Many factors are taken into account when determining insurance premiums including:

  • Factors that are individual to you or to the item you are insuring which could influence the likelihood or size of a loss. This could be factors such as the location of the property or whether there is a security alarm installed.
  • Levies and taxes are added to premiums and are collected by insurance companies on behalf of the Government. Examples include Earthquake Commission levies and Fire and Emergency NZ levies. In October 2022 Toka tū Ake EQC made changes to the levy meaning premiums may change depending on the property, location and how the property risk is calculated. This could have a significant impact particularly in high-risk areas.
  • External factors such as inflation have a big impact on our suppliers’, making repairs, replacement and rebuilds (claims costs) more expensive. Premiums may be increased to ensure that these increased costs can be covered.
  • Reinsurance costs continue to increase globally. With the increasing frequency and severity of weather events in New Zealand, reinsurers are reassessing their risk exposure and charging more for this essential support. Reinsurance provides financial support for insurance companies when there is extensive damage and claims following an event, also having a high degree of interaction with inflation. It’s like insurance for insurance companies.

Looking ahead

We’re working with local and central government, businesses, and banks to better understand the increasing impact of a changing climate on our communities and determining how this can best be managed.

We’re doing this with the awareness that the choices we make today about managing risk, including climate risk, will ensure the sustainability and longevity of affordable insurance cover for the next generation, and the future sustainability of New Zealand.

Ways to help manage your premiums

  • Selecting a higher excess could potentially reduce your premium. You will need to pay the excess when claiming, so choose an amount that you can afford.
  • Review your optional benefits. Before your policy renews make sure your optional benefits are still relevant to your current situation.
  • Explore flexible payment options including fortnightly, monthly or yearly. Paying your premium annually could be less expensive than paying by instalments.
  • Check if you’re eligible for any discounts. Examples include discounts for security alarms on your contents policy and monitored heat and smoke detectors on your home policy, or for having two or more policies with us. Terms and conditions apply for discounts.

Take time to check your insurance cover

It’s easy to let your insurance cover automatically renew each year, but we strongly recommend you take the time to review your cover to make sure you are fully covered in case the unexpected happens. There are some easy tools to help you work out how much cover you may need.

Regularly review your home sum insured

Building costs can fluctuate, so a tool like the Cordell calculator can be a helpful starting point when estimating what it could cost to rebuild.

Cordell Calculator

Check your contents sum insured

is sufficient to cover your belongings using the Contents Calculator.

Contents Calculator

Important information

The information contained on this page is a general summary and is for information only. Some of the information may relate to only some of Vero’s policies, but not to others. The information is not personalised to your situation and is not a recommendation to obtain insurance, or a particular type or level of cover. This information is not financial advice. You should consider your own circumstances and consult a broker or financial advice provider for individualised advice.

Getting Help

If you’re facing financial hardship and aren’t able to pay your premium, or you’d like to discuss your payment options, contact your broker, adviser or call us on 0800 505 905 and we’ll do our best to support you.