Insurance after the 1st of October
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Category: General Chat
Forum Name: General Chat
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URL: https://www.ohbaby.co.nz/forum/forum_posts.asp?TID=35944
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Topic: Insurance after the 1st of October
Posted By: Samandtia
Subject: Insurance after the 1st of October
Date Posted: 27 September 2010 at 1:47pm
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I was watching Fair Go last week and they said that if you are paying your insurance monthly your gst rate doesn't go up until your anniversary date. I got a letter from my insurance company the next day saying my payments are going up because of GST...!? I've only just signed up with them for my insurance so it's not like I am up to my anniversary date either... just wondering if anyone else is paying their insurance monthly and if their rate is going up or not? It's not going up by much but if it does I might aswell go with another company who is offering me something better at the same rate. |
Replies:
Posted By: heaf3
Date Posted: 27 September 2010 at 2:10pm
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yep, i'm with AMI for my contents insurance and had a letter from them on friday saying that the premium was going to go up in october....i also watched fair go and was like huh?? so i am a bit confused about that lol. yeah its not by a lot that it goes up by, like $2 i think per month...but if it isnt supposed to go up until the anniversary are they in the wrong? ------------- http://lilypie.com" rel="nofollow"> 
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Posted By: kebakat
Date Posted: 27 September 2010 at 2:13pm
| I haven't had a letter from our insurance providers so I'm just assuming they aren't going up because otherwise they would have to notify me surely? |
Posted By: clover
Date Posted: 27 September 2010 at 2:25pm
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Basically it isn't clear cut, it depends on the company and the policy.
Insurance companies have the option to pre-pay GST. If they had prepaid the GST for your annual premium they wouldn't pass on the GST increase as they have already paid it at 12.5%. If they haven't prepaid they can pass on the increase, some companies have and some haven't. If your company is going to pass on the increase the only way you can get out of it is to pay your total annual premium owing before 1 October. It is slightly more confusing than that but I've tried to make it understandable. As usual the fair go program was a little off the mark, not surprising given their general hatred of insurance companies. Stacey you are right, they would have had to inform you in writing. I use a variety of companies, UniMed and AMP have passed on the increase, State doesn't seem to have. All policies are paid monthly. (Axa has also absorbed the increase I believe) Oh, also it pays to note you don't pay GST on straight life cover, so if you just have life insurance (with no added trauma, crisis etc) there is no GST payable on the premium hence you wouldn't have got a letter. ------------- http://lilypie.com"> 
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