About ACC Cover Plus Extra
Self Employed ACC Levy Quotes
Learn how you can save up to 37% of your ACC levies and use the savings to pay for your own private cover. Our free, quick and unbiased service is tailored specifically for the self-employed in New Zealand, whether you have 2 or 200 staff you can learn how to make savings.
Our goal is to lower your ACC levies and show you how you can use those savings to double your cover with your own private provider. Or alternatively pocket these savings, it’s that simple.
It’s fast, easy and available 24/7 for your convenience!
Evaluating ACC Coverage
Self employed people in New Zealand are required to pay an ACC levy, which entitles them to ACC Cover Plus insurance from the government. It covers you for medical treatment and rehabilitation, and compensates you for 80% in lost earnings in the event you have a work-related or non-work related personal injury. The levy you pay for this coverage is based on the type of work you do, your earnings and the claims you’ve made in the past and your future risk.
If you want more or less than the 80% compensation in lost earnings, the government also offers ACC Cover Plus Extra. This provides the same coverage as ACC Cover Plus, but it compensates you for lost earnings based on a pre-agreed amount between you and ACC underwriting. You can choose the compensation amount you want to receive if an injury puts you out of work. For example, if your business will continue to generate income for you while you’re out with an injury, you can choose a lower amount of compensation. However, you still have to pay an ACC levy. Keep in mind that by choosing a lower compensation amount, this will be the amount you will receive if you make a claim as a result of an injury, regardless of whether or not your business continues to operate.
Both ACC Cover Plus and ACC Cover Plus Extra are explained in more detail on the New Zealand government’s website for ACC www.acc.co.nz
ACC is limited in its coverage. For example, it only provides no fault injury cover. And that cover is limited, with the ACC tightening its claim criteria that applies to new injuries, and old injuries that reoccur from general wear and tear. More importantly, ACC does not provide coverage if you are unable to work due to an illness, a health condition, or a recurrent disability.
ACC is also limited to how much it will compensate you in lost earnings as a result of an injury. The compensation amount is based on the income reported on your tax return. If you split your income with a spouse, you only get 80% of the income split you have declared under your name. Your compensation payout is further reduced because you have to pay taxes on your claim payments. Furthermore, there is a one week waiting period in receiving your lost earnings compensation and if you initially return to work part time, your compensation will be adjusted accordingly.
So what do you do if ACC coverage is not enough? That’s where private insurance comes into play. Income protection insurance, life insurance and mortgage protection insurance with mortgage repayment insurance policies will fill in the ACC coverage gaps. In addition, with private insurance, you can lower your ACC benefits and significantly save on the ACC levies.
With private insurance supplementing ACC, there are no worries about having insurance coverage for any circumstance that puts you out of work. Plus, you and your family will be well provided for and you won’t have to worry about losing your home while out of work.
Why You Should Dial Down Your ACC Coverage
Rather than pay ACC levies to receive coverage only when an injury makes you unable to work, private insurance offers several options, such as income protection, mortgage protection and life insurance, which give you more comprehensive insurance coverage at very affordable rates than what you are paying for your limited ACC coverage.
It is more beneficial for self employed New Zealanders to reduce their ACC coverage benefits and apply the savings from the resulting reduced premiums to purchase a private insurance policy that provides much more comprehensive coverage and has reduced limitations and restrictions.
Get Your Rates Comparison Today
Being self-employed carries enough responsibility in itself that you shouldn’t have to worry about how you are going to pay your mortgage, your bills, or support yourself and your family when you are unable to work. That’s what private insurance is for. Let us help you get the right insurance policy for your needs. It’s easy to get started with our insurance rates comparison. Get your free ACC Cover Plus Extra quote today!