Up they go - AMI push through excess increases

By John Grant

AMI have advised of a raft of excess and other changes that are effective from 2 January or the next anniversary date of a policy. These changes have been foreshadowed in previous stories, however we have been waiting for formal notification which we have now received from Richard Hutton, Chief Customer Officer of AMI. The detail as provided to us follows;

The new excesses and the removal of the “No excess on spectacles, hearing aids or dentures” option, will apply to renewal letters mailed to customers.

Motor The AMI standard Vehicle excess has not been changed since 1992. We have now made the decision to increase the standard excess for the majority of Vehicle classes from $250 to $300.  There are no changes to the current range of voluntary excess options. The Vehicle excess changes were implemented with effect from 2 January 2010.

• The new excesses will apply to renewal letters mailed to customers.
• The new excesses will apply to all new and additional business from 2 January 2010.

House and Contents The AMI House and Contents standard excesses have not been changed for some time. We have now made the decision to increase the standard excesses under these policy lines from $100 to $200.  In addition to this, the lower optional excesses (including the nil excess for house) is no longer be available for House and Contents. The “No excess for spectacles, hearing aids or dentures” option in the Advanced Contents policy has been withdrawn. The lower voluntary excesses for House, Rental House and Contents have been withdrawn.  Customers will still be able to select higher voluntary excesses, if available for that class.

• The House and Contents excess changes & the removal of the “No excess on spectacles, hearing aids or dentures” were implemented with effect from 27 February 2010.
• The changes will apply to all new and additional business from 27 February 2010.

The changes to excess bring AMI in line with a number of other companies. The removal of the no excess on spectacles hearing aids and dentures  is a major change for AMI.  State provide no-excess for over 55 year old customers and AA Insurance have similar terms to AMI in that the excess would apply. Additionally AA Insurance excludes contact lens cover whilst engaged in sport and water activities. All the more reason to shop around and compare what is available.