There are no shortcuts with insurance

AA Insurance received a significant number of calls yesterday from people who are reviewing their insurance following recent events.

One significant pattern is that they realise the low prices they may have been paying can’t continue. Many callers now understand that price should not be the only consideration when deciding who to place their insurance with and that the low premiums, particularly for home insurance, many New Zealanders have enjoyed to date are not sustainable.

Insurance premiums for all New Zealanders now look certain to rise after the Canterbury quakes. The government has already announced that the cost of earthquake insurance will increase and international reinsurers have increased their premiums for New Zealand earthquake cover.

“The truth is with something as important as insurance, price is only one factor to consider,” says Chris Curtin, Chief Executive, AA Insurance. “People need to be sure that the company they select will be able to pay their claims when the worst happens. Our advice is that people should shop around, see what benefits the company is offering and make sure you’re getting the cover which suits your needs, and most importantly, satisfy yourself that the company will be around to cover you when you need them.”

“The events in Christchurch have permanently changed the insurance landscape in New Zealand. To be able to assure customers of their ability to meet all likely claims, insurance companies must now be able to demonstrate, as AA Insurance can, that they have the backing of sound international capital and resources,” says Chris.

ENDS

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