How monthly insurance works

Put simply, monthly insurance means your insurance is renewed and paid for each month.  Its a month to month policy rather than an annual policy paid monthly.


What does this mean?

Rather than pay an entire years worth of insurance up front in one go, you can enjoy smaller monthly insurance charges.
Monthly insurance with initio is just like a monthly gym subscription, providing you with the flexibility to unsubscribe whenever you choose.

What is the difference between annual and monthly insurance?

Monthly insurance is a month-to-month policy, so once you commence the cover online we automatically renew your policy and facilitate payment on a monthly basis.  The cover will only stop if you go online and stop your cover, which is simple to do via your online dashboard.

Annual insurance means your policy is entered into upfront for a full 12 month period. Payment also occurs upfront and is then manually renewed and paid for by you each year.  The cover will cease if you don’t renew it.

You can look at monthly insurance the same way you look at a floating mortgage, with an annual insurance policy similar to a fixed mortgage.  With annual, because you have paid up-front you have locked that premium and cover in for the year.  With monthly you have locked the premium and cover in for the month and if premiums or levies change, so does your monthly charge.  This doesn’t happen very often, but if it does we will always let you know in advance by letting you know what your next month’s charge will be.

When does my credit/debit card get charged?

Your credit / debit card will be charged on the day you transact with initio (even if you choose a date in the future to start the cover).  Then each month initio will charge your card on the same day of the month that your policy renews (ie the original commencement date).

What if premiums or levies change?

Premiums can go up or down depending on the local New Zealand insurance environment. Events such as storms, earthquakes, flooding to name a few major events (or lack thereof) can have an impact on insurance premiums.  Also, the government makes changes to the levies they charge every now and again (Fire Service Levy, and Earthquake Commission Levy) which can impact on the cost of premiums.  On the average initio insurance policy these government levies make up almost half of the premium.
So…  that said, if premiums or levies change, then that change is effective from date after the your next policy period.  For example if the fire service levies increase from 1 November 2019 then all monthly and annual policies renewing after this date will be charged at the new levy.
If you have a monthly policy we will always give you notice of any change.

How do I pay?

By Credit or Debit Card.
When you start your policy you will make the first month’s insurance payment with your Visa or Mastercard credit/debit card.  Each month (on the same day you told us to start the policy), we will automatically renew and charge that same card each month (you can update your card online via your initio dashboard).

We will email you each month letting you know that your policy has been renewed and we will confirm the charge to your credit card.
We will also always let you know what next months charge will be.
You can stop the insurance payments by cancelling the insurance through your initio dashboard.

How does it work?

When you get an initio quote for your property you will be provided with both policy period options, yearly or monthly.
Example:  on 20th of February Barney chooses to start his monthly cover from 1 March. $92 per month.

  • Barney enters his credit card number (Visa or Mastercard).
  • On that day, 20 Feb, his card is charged $92 for the insurance period 1 March to 1 April.
  • Barney instantly receives confirmation of the insurance online and by email.
  • On the 1st of April Barney’s policy automatically renews and initio charges Barney’s credit card $92 for the insurance period 1 April to 1 May.
  • Barney receives a confirmation email from initio.
  • The monthly process continues until Barney chooses to stop the insurance cover.

Just like our insurance signup process and our claims,  we’ve kept it simple

What does it cost?

You’ll pay a bit more over an annual period if you are on a monthly policy, and that’s because its riskier for an insurer to provide a monthly policy compared to an annual one.  Premiums are based on risk.

Is it secure?

Yes.  We use well known secure payment provider, Stripe, to manage our monthly payments.  Stripe operates in 120 countries world wide and uses the most stringent level of payment security certification available in the payments industry.