Insurance Premium Increases? Important information on the Fire Service Levy Previous item Tips to keep your home and... Next item Ransomware survival guide

Why it’s time for a change

The New Zealand Fire Service is mainly funded by a levy on home, contents, vehicle and commercial insurance policies. Insurance companies collect this levy on behalf of the New Zealand Fire Service Commission.

The New Zealand Fire Service Commission increased the fire service levy on 1 July 2017. The new levy rates will ensure that Fire and Emergency New Zealand has the necessary funding to deliver essential fire and emergency services to the communities, as well as to maintain the current level of services provided.


What does this mean for you?

Domestic policies will have their tax applied at a rate of 10.6c per $100 insured, to a maximum amount of $100,000 in house insurance and $20,000 for contents cover. That means the maximum levy payable per house is $106 and $21.20 for contents

For motor vehicles under 3.5 tonne, the levy is a flat rate irrespective of the value of the vehicle. The total levy on car insurance will now be $8.45 per year. This percentage has increased from 0.076% to 0.106%

The levy has increased from 7.60c to 10.60c per $100 of insured indemnity value for all non-residential property (buildings, plant, contents and stock) and is uncapped.


Some helpful ways to reduce your premiums

While recent events remind us of the importance of having insurance cover, there are some steps you can take that may help to reduce your premiums.

Reduce your personal insurance premiums by…

  • adding a voluntary excess to your policy.
  • excluding under 25 year old drivers from your motor vehicle policy.
  • having monitored fire and security alarm systems to receive a discount on home and contents insurance. Conditions apply.
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