Insurance premium increase

I had occasion to speak to our insurance company today. Whilst speaking to them, I asked them to please explain why my premiums have gone up so drastically. The usual waffle ensued and I am not impressed.

Our insurance for the house alone has gone up by 25% this year [:0][:0][xx(]
I wish our wages would go up by this amount to keep up with things.

Between petrol, rates, electricity, and now insurance rises, its not wonder no one can get ahead.
Even the milk price has sky rocketed. The local brand I used to by was $2.99 per 2 litres. The store brand I now have to buy as our local one has closed down, is $4.29 per 2 litres. On a % wise, that is a huge increase - especially since we use at least 6 litres a week. Might have to switch back to toast for breakfast instead of weetbix.[]

Anyway, back to the insurance. I told them I was not happy with that size increase with no warning, no explanation, no nothing - just helping themselves to money out of our account. I shall be talking to a broker I think and see if we can get a better deal elsewhere. After all, we have: house, contents, farm and 2 vehicles to insure, so I would think someone could do us a better deal than we currently have.

Have any of you had premiums increase by that sort of margin ????

ronnie;318637 wrote: ...I shall be talking to a broker I think and see if we can get a better deal elsewhere. After all, we have: house, contents, farm and 2 vehicles to insure, so I would think someone could do us a better deal than we currently have.

Have any of you had premiums increase by that sort of margin ????

I asked exactly that question when we renewed our insurances this year, and ended up changing providers.

Previously we were with a broker who used AON as their underwriter. After further investigation, I found that PGG Wrightson offer insurance provided by AON through their network of rural stores, but they don't tell anyone about it. We got a quote from AON, and it was much better than what our broker had been able to do.

However, at around this time I also found out about RD1 Farm Cover. This is provided through a nationwide brokerage called Crombie Lockwood and we have dealt with the rep. from the Whangarei branch. He visited our property and made various suggestions, all of which saved us money. We were very impressed with the quote provided, and another sweetener to the deal is that we pay the premium monthly through our RD1 account for no additional charge. Our broker previously offered this, but wanted to charge an extra 10% for the privilege.

Overall, I cannot speak highly enough of Crombie Lockwood/RD1 Farm Cover. If you are interested, send me a PM and I will give you the contact details, or talk to your local RD1 branch.

It is something to do with some insurance companies having to increase Life Insurance Premiums and to avoid the massive hike (for reasons I don't know) they are spreading the "burden" across all their customers. Read an article about it recently so go out and get quotes from other Insurance Companies and don't forget brokers. What insurance company are you with? Google this subject and one in particular is coming up in the headlines.

Don't forget that our lovely Government is increasing GST as well which is a good reason for Companies to grab it back from customers but should be calculated (if at all) from the GST increase date - not earlier. Ask the hard questions and ask to speak to someone senior if you are not getting the answers from the 0800 front desk.

My insurance is not due until July so will also be doing this exercise as well. Don't forget to reduce your vehicle values and also look at the true and realistic price of your contents insurance. Life has changed in that department big time over the past few years and most insurance guidelines are over the top.

Just read Grant's post and should add that I am with Crombie Lockwood as well BUT not through RD1 so thanks Grant - will look into that also.

Crombie Lockwood also have their own insurance company called Momentum and I can't speak highly enough of their dealing with my claim for a broken headlight. You so have to read your policies as many of the cheaper ones (and theirs is so competitive!) only cover windscreens. Having been in the Insurance Game I repeat over and over again - read your policy documents and especially their Exclusion clauses. Will save a lot of anger and heartbreak when you need to make a claim and have it declined.

Adults in their prime are dropping dead all around us - a 42 year old teacher at our children's school last Wednesday, a friend's 46 year old sister a couple of months ago, a friend's 52 year old cousin last February, today our son told us about a young professor he's met recently who died and on it goes - no wonder life insurance gets more and more expensive.

DiDi;318653 wrote: It is something to do with some insurance companies having to increase Life Insurance Premiums and to avoid the massive hike (for reasons I don't know) they are spreading the "burden" across all their customers. Read an article about it recently so go out and get quotes from other Insurance Companies and don't forget brokers. What insurance company are you with? Google this subject and one in particular is coming up in the headlines.

Yes, that is along the lines of the verbal explanation. Something to do with the risk now being spread over everyone, not just those making claims. She mentioned natural disasters, fraudulent claims etc etc etc. I feel that is unwarrented as we have never made a claim in the many years we have been with this company.

I do expect the premiums to rise slightly each year, but feel 25% is a bit steep in one go, and by the sound of it, to expect this size of rise each year. And that is only the house policy. Goodness knows what the rest will rise by when they are due for renewal.

It's also something to do with the way that the companies are taxed, can't remember the full ins and outs of it, but that premiums would be going up as a result.

PS found it www.stuff.co.nz/business/3754946/Premium...ite-IRDs-tax-tactics

Medical insurance is also tipped to go up substantially the next 12 months.

And when GST goes up...expect the 'base price' of most things to rise as well as vendors take advantage of consumer confusion/inability to do maths [}]

tigger;318677 wrote:
And when GST goes up...expect the 'base price' of most things to rise as well as vendors take advantage of consumer confusion/inability to do maths [}]

That's exactly what I worry about, too. When the big supermarket chains have to change each and every price on their computers they might just as well add a bit for inflation, too. And a bit for the exchange rate for the NZ Dollar and a bit because they have absorbed rising costs for so long without increasing prices and before we know it the 2 to 3% increase that is forecast will become 20 to 30%[}]

I have not spoken to one person yet who really thinks that the personal tax rate decreases will make one iota of difference to their in-hand income after all the other increases are taken into account....

Tigger - you are speaking to the wrong persons[}]

I haven't got access to these people, either, but Telecom's boss with an income of 6 million p a (that's what I've heard) will save around $480 000 pa in taxes so it definitely does make a difference. (I hope I've got it right that the top tax rate has been decreased from 38% to 30% - that's what my calculation is based on).

So if he buys KoziToez slippers for that and a few pure bred point-of-lay pullets[8D] and a few more NZ made products it will definitely make a positive difference. We shouldn't all see the negative impact of this tax decrease:rolleyes:

Simkin;318703 wrote: So if he buys KoziToez slippers for that and a few pure bred point-of-lay pullets[8D] and a few more NZ made products it will definitely make a positive difference.

Ooh look, a pig just flew by! [}][}][}]

I know one of my family in Wellington got a letter from their insurance company warning of a considerable increase in the coming months- but the letter didnt say by how much! It did blame the increase on floods and storms etc causing so many claims. Its a worry as I know this person only has house replacement cover and cancelled their contents insurance as they couldnt afford it.

We are with FMG who we switched to when we moved here as NZI were hopeless as far as lifestyle block insurance went. FMG have been pretty good although I did wince and complain last year at the cost of insurance for our car as its only worth about $3000. So will be watching to see what happens come September when our next review is due......might have to look at RD 1.

tigger;318677 wrote:

And when GST goes up...expect the 'base price' of most things to rise as well as vendors take advantage of consumer confusion/inability to do maths [}]

I'd say that the commerce commission will be very busy looking at this very issue in the next 12 months.