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Levies on the increase

Double whammy on levies

Did you know that a large portion of your house insurance premium goes to the government in levies. For the average initio house insurance policy sold through our site www.initio.co.nz, over a THIRD of the cost to the home owner is levies…… and unfortunately that proportion is about to jump significantly with fire service levies increasing by 40% from 1 July and earthquake commission levies increasing by 33% from 1 November, which will mean total levies will then make up almost HALF of the cost of an average initio house insurance policy.

While levies are perceived as a bad thing, because they hit each of us in the pocket, it is important to take account of the fact that the fund essential community necessities such as the New Zealand Fire Service, many of which are volunteer fire brigades in smaller communities.  These brigades require specialized trucks and machinery to attend fires and accidents of all types.

So as the running costs and costs of plant increases so too do the levies. ┬áThe good news is that the team at initio continue to work hard to keep the actual insurance premium down so that home and rental property owners can enjoy some of the best value cover around. Initio keeps premiums down by making the process of insurance simple, and its online. Get a quick quote in seconds and get covered in a little more…. ‘no death by a thousand cuts’ paperwork or long winded phone calls. Unfortunately, we just can’t do anything about the levies.