Motor refund 2020

In April we committed to refunding the benefits of lower costs from fewer motor claims during the COVID-19 lockdown period. We believe refunding these costs is the right thing to do for our customers.

We have a total of $7.2 million to be shared between our motor customers. Find out more below.

About your refund

How much will my refund be?

You'll be refunded 45% of the motor premiums you paid between 24 March and 13 May 2020 inclusive. All amounts include GST, but exclude fees, levies, and the RoadWise optional benefit.

Your refund confirmation will show the original premium that covered this period, the adjusted premium for this period, and the refund amount. This will also serve as a credit note for tax purposes.

We've calculated this amount over the 51 days of level 3 and 4 lockdown, from 24 March to 13 May 2020 inclusive.

When will my refund get to me?

Most of our refunds will be paid throughout July and you'll receive an email or letter at the same time to let you know the amount. We'll be paying all refunds directly into bank accounts.

  • We're getting ready to start paying refunds to customers who already have bank details on file because they pay by direct debit.
  • From mid-July, we'll start contacting customers asking them to provide their bank account details so we can pay their refund. This will be through a secure online form on our Tower website.

How will my refund get paid to me?

If you pay by direct debit

We have your bank account details on file and we'll arrange for the payment to be made to your bank account.

There is nothing you need to do.

We'll be in touch to confirm when it's ready to be paid to you.

If you don't pay by direct debit

You'll need to provide us with your bank account details so we can arrange for the payment to be made to your bank account.

In mid-July, a secure online form will be available on our website where you can send us your bank account details.

We'll let you know by email or post when this is ready for you to use. You'll also be sent a refund code which is unique to you and will help us to match your bank account details to your policy.

Frequently Asked Questions

All car, motorcycle, and motorhome policies across our domestic, commercial and rural policies in New Zealand are eligible for the refund.

Caravans and trailers are not eligible for a refund.

We're also happy to be extending the refund to our customers across all of our partners, including but not limited to, TSB, Trade Me Insurance, Kiwibank, ANZ/National Bank, and our broker referred customers.

Refunds will be based on eligible motor customers’ premiums paid between 24 March 2020 and 13 May 2020 (including GST, but excluding fees, levies and the RoadWise optional benefit).

We had planned to make the refunds by the end of May, but as there were also lower motor claims costs during level 3 of the lockdown, it's taken us a little longer to calculate the amount each motor customer will get. Refunds will now start to be paid out from Wednesday 8th July and will take a few weeks to fulfill for all our customers. You'll receive a confirmation email or letter when your refund is ready to be paid.

Your refund will equate to 45% of the value of the motor premium you paid between 24 March and 13 May 2020 (including GST but excluding fees, levies and the RoadWise optional benefit).

If you have several eligible motor policies for which you paid insurance premiums between 24 March and 13 May (inclusive), you’ll receive a refund for each policy.

The refund for each of your policies will show separately on your bank statement with the policy number as the payment reference, so you can easily see the refund amount for each policy. You can find the policy number on your latest renewal email or communication from us.

A total of $7.2 million will be shared between our eligible motor customers.
The amount being refunded is based on the lower motor claims costs during the COVID-19 lockdown.

We'll be making the payment by direct credit into your bank account.

If you already pay your premiums by direct debit from your bank account today, you don't need to do anything - we'll make the payment directly into your bank account.

If you pay via another method, we don't have your bank account details on file and we'll be in touch when we're ready to make the payment to talk through next steps.

We haven't seen a comparable reduction in our claims costs for house or contents policies over the lockdown period. This makes sense as more people were at home and household items were used even more over this period.

No - due to the number of customers we're refunding, we want to make it as simple as possible to make the refund to you quickly. The fastest way we can do this is by a direct credit to a bank account for all of our eligible motor customers.

We'll offer a refund to you based on the relevant portion of your motor premiums regardless of how often you pay. As long as your payments are up to date for the period between 24 March 2020 and 13 May 2020 for each of your eligible motor policies, you'll be offered a refund.

To keep the payments of refunds as simple as possible, we're not offering this option.
No, we'll be refunding the payments to our customers' bank accounts so that we can keep the method for payment of refunds as simple as possible.

No, we will not ask you to send us your bank account or credit card details by email or text. To receive your refund, you will be given a link to a secure form on our Tower website if you need to provide bank account details. Please do not reply to any email or text that asks you for your bank account or credit card details directly.

Your refund will not show anywhere in the My Tower portal as it is a direct credit from Tower to your bank account.