The cost of insurance

Reporter Simon Wong asked people in Blenheim yesterday what a rise in insurance premiums would mean for them.

Government-backed AMI Insurance has warned its premiums are likely to increase by more than 20 per cent for South Island policyholders from July 1.

AMI chief executive John Balmforth said the rise followed natural disasters around the world, including the two major earthquakes in Christchurch.

Marianna Daly, of Grovetown, with AMI Insurance:

The increase is a bit rough if you've paid insurance for X amount of years and they turn around and sting you. I probably wouldn't switch – aren't all insurance companies in the same boat at the end of the day? You don't really have a choice about how much you pay for your premiums when you've got a home and a family.

Sheelagh Smith, of Blenheim, with State Insurance:

I can understand why AMI might be increasing their premiums, but when you're on a tight budget, it just makes it tighter. Insurance is essential, so if premiums are going to increase, then you're going to have to give something up. If they go up, then I'll have to take it and pay it.

Gerald Wilkes, of Blenheim, with AMI Insurance:

You just have to go with any increases. It doesn't matter if the price of premiums is too high, you've just got to go with it, but you'll still probably find yourself under-insured anyway. You never really know with other companies when you shop around. Some companies would say you've got this and this type of insurance, but then you have to work hard to get it from them.

Anne Brown, of Christchurch, with AMI Insurance:

Everyone has the choice to shop around if they don't like the increase. It's important for people to ensure they have adequate insurance and ultimately it's your responsibility to pay for what you expect to be covered for.

- The Marlborough Express

Last updated 14:05 10/06/2011