How does monthly insurance work?

With initio your insurance cover is renewed and paid for each month.  It’s a month-to-month policy rather than an annual policy thats paid monthly.


Im starting a new policy and it says next month’s premium is different to my first payment?

This is because your ‘next month’ period of insurance includes a change in Government imposed levies.  All insurers must collect these levies.

*LEVY CHANGE – OCTOBER 2022*  For monthly polices starting or renewing in October 2022 and after the Earthquake Commission (EQC) Levy is increasing from $28.75 inc gst to $46.00 inc gst per month.


Will you tell me if my monthly insurance cost changes?

Your monthly insurance cost is made up of insurance premium and government levies.  We’ll always let you know if any of these change.

Premiums can change on occasion, usually once per year.  Many insurers are constantly tweaking their premiums but since we started in 2010 we’ve changed our premiums every, 18 months on average – thats not very often.

Levies also change when Fire and Emergency New Zealand or the Earthquake Commission adjust their levies.  When this happens the new levy will apply to your monthly renewal immediately after the levy change.  We’ll let you know at least a month in advance.

So if there’s a change to your monthly payment we always tell you so that you know whats happening.  Your dashboard will also show you the date and amount of next months charge.


Why does my insurance cost change?

There are a number of reasons why your house or car insurance premium can change.  Some of the more common reasons are:

  • Change in the costs of materials and labour, which makes repairs more expensive (think Covid supply chain issues putting pressure on materials costs)
  • Increased in the frequency and severity of weather events (think Napier floods 2021, Auckland tornado 2021)
  • Government earthquake levy changes (increasing by $207 inc gst from 1 October 2022)
  • Fire Service levy change.
  • Increased re-insurance costs due to the way international insurers view New Zealand’s natural disaster risk (NZ is one of the highest risks in the world unfortunately)
  • For cars, the main driver may have had birthday or an accident which changes the risk and in turn changes the premium (up or down).

When will my card be charged?

When you first purchase your policy the first payment will be withdrawn from your card on that day. All following monthly payments will be withdrawn from your card the day that your policy renews (your chosen renewal date).

For example, if you buy a new policy on the 1st of January and the start date of the policy is the 5th of January, you’ll be charged on the purchase date (1 Jan), then all future monthly payments starting from Feb will be withdrawn on the 5th of each month.


How can I pay monthly?

Our monthly payment is only available with a debit or credit card payment. We don’t offer a monthly direct debit from your bank account.