AAMI Car Insurance - Different Prices for different addresses & previous insurers!

cinnamon85 on 02/04/2014 - 09:19
Last edited 02/04/2014 - 09:47

I was getting quotes for my car insurance last night and i was shocked to find out that with AAMI putting in a different address, just one house number different gives a whole different price for the insurance! The houses on each side of me were coming up with prices $53 cheaper than my own address. Not changing any other details other than the street number! Even more ridiculous is my house has a double locked up garage that the car would be kept in whereas both of the neighbours only have a carport, yet their address gives cheaper insurance! $53 is quite a difference too! Also tried a few different numbers in the street and other streets nearby and got about 5 different prices all for houses within a minute of each other!

On top of that, one of the questions they ask is: "Who is your previous insurer?" Changing no other details at all apart from previous insurer also gives different prices for the insurance premium, differences of up to $80! If you were previously insured with RACV compared to Coles Insurance compared to Allianz etc, all gave a completely different price for your insurance premium with AAMI. What does your previous insurer have to do with your car??? What does it matter who your previous insurer is? There was about 50 different previous insurers to choose from and nearly every one i chose gave a different price to the premium if you were to sign up with AAMI.

Safe to safe i wont be getting insurance through AAMI. They were alot more expensive than other companies anyway. Couldnt believe the difference in prices just for one house number difference and based on who your previous insurer is!!!

EDIT: I also did alot of quotes on the RACV site but their premium price didnt change based on your address, all street numbers in my street came back with the same price for RACV. They dont ask who your previous insurer is either. Im about to have a look on some other insurance sites and see if their prices change depending on address

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Comments

  • delusioned on 02/04/2014 - 09:44
    +2

    Information they decide this on are generally taken from population studies, AFAIK. They don't make logical sense most of the time.

    That being said, I usually just go with whichever insurance has the cheapest and most agreeable terms.

  • cinnamon85 on 02/04/2014 - 09:49

    yeah it definately doesnt make sense. I tried RACV too but their price didnt change if you changed the address. Every house in my street came back with the same premium price with RACV. So far its only AAMI who changed the price based on street number!

  • tinx on 02/04/2014 - 09:49
    +2

    In my case, we have 3 units in a block, all comes with different price lol.

    Their reason was the distance from the garage to the street. BS reason -.-

    Most probably because previous claim history on that address.

    • delusioned on 02/04/2014 - 10:11
      +1

      Previous claim history on address makes sense, at least, even if it's unfair.

      • cinnamon85 on 02/04/2014 - 10:23
        +1

        not sure if the previous claim history on addresses could be their excuse in all cases… I just tried my aunties address who has lived at her house since it was built 27 years ago. They are the ONLY ppl who have lived in the house and have NEVER made a claim on any sort of insurance, but their house was coming up as more expensive than other houses in the street! There was 3 houses that were $70 more than others in the street, theirs included but they have never, ever made an insurance claim and they are the only people to have lived in the house! Other houses in the street were coming up at $70 & $40 cheaper than hers….very unfair!

  • cinnamon85 on 02/04/2014 - 10:00

    wow thats ridiculous tinx! What a stupid reason about the garage. I just thought it was funny that our address has a double locked up garage that the cars are kept in but the 2 houses next door who were both coming up as over $50 cheaper, both only have an open carport, very close to the street! Its not even on a main road or anything. Id be interested to see what their reason is in my case!

    • [Deactivated] on 03/04/2014 - 13:33

      maybe your household has a higher reported income? can they get that info?

      • cinnamon85 on 03/04/2014 - 13:37

        gosh no. they would not be able to get that info for privacy reasons. and even if they did we are no way near classed as high income, anything but in fact. i wouldnt be part of oz bargain if i was classed as high income lol ;)

        they definately shouldnt be allowed to discriminate insurance prices based on how much you earn. it should just be based on the car and your driving history as well as your suburbs risk profile.

        • [Deactivated] on 06/04/2014 - 08:53

          Privacy doesn't really exist in reality. It was a concept invented to make the little people feel secure and protected. Remember, trust no one.

  • godofpizza on 02/04/2014 - 11:54
    +4

    maybe certain street numbers (13) are unlucky than others?

  • endotherm on 02/04/2014 - 12:39
    +13

    Must watch this, it explains everything! https://www.youtube.com/watch?v=VDpJ3S8z0I0

    • hahaboy on 03/04/2014 - 21:30

      +1 Was looking for this link. Knew someone would upload.

      Great show in general.

  • ZeroSix on 02/04/2014 - 13:24
    +1

    Out of curiosity, which previous insurer was the highest/lowest price?

  • cinnamon85 on 02/04/2014 - 13:31

    jh1000 - to be honest i didnt go through all of them as there was about 50 or more to choose from and they were all different prices. I was choosing previous insurers i had never even heard of! If you chose "No previous insurer" though i remember that was the most expensive. I'll never understand how previous insurer has anything to do with it. Even if you have had no previous insurer for your first car or something, are they assuming its for someone who has just got their license? If so that should be taken into consideration in the persons age/how many years they have been driving i would assume? No idea how it relates to previous insurer! Or what if its someone who has been driving for years and has just bought a new car & has a perfect record…why should they pay a higher premium just for having no previous insurer on that car?

    Its beyong me, i cant make sense of any of it!

    • kronicmacstigator on 10/04/2014 - 22:22

      why should they pay a higher premium just for having no previous insurer on that car?

      Previous insurance does not refer to the car, it refers to the primary drivers previous insurer…

  • Elppa8 on 02/04/2014 - 18:05

    Give the a ring they will probably match. I regularly check on line and find the on line price a lot cheaper than the renewal notice.

  • cinnamon85 on 02/04/2014 - 18:31

    Thanks elppa8. Im not going to go with them though if they are misleading customers like that. Racv and a few other major companies were alot cheaper than them anyway :)

  • anna10 on 03/04/2014 - 07:23

    Choice Magazine and The Checkout (ABC tv) both did interesting covers on insurance. They called it the 'lazy tax' when people just keep on w' their current insurance. They do NOT reward loyalty, just the opposite.

  • pjcook on 03/04/2014 - 07:56
    +1

    Is the OP currently with AAMI? Reason I ask is it may explain why the houses along side are cheaper, if the AAMI database contains addresses of current policy holders then the quote may be closer to the renewal notice.

    • cinnamon85 on 03/04/2014 - 08:36

      Nope i am not currently with AAMI and definately never will be after this! I was just getting quotes from a few different companies.

      • timmypete on 03/04/2014 - 16:33

        Are you with a subsidiary of Suncorp?

        "Suncorp also owns the AAMI, Apia, Just Car Insurance, Shannons, InsureMyRide, Vero, Terri Scheer, Bingle, CIL, Asteron and Tyndall insurance brands in Australia"

        • cinnamon85 on 03/04/2014 - 17:14

          No im not with anyone to do with suncorp or any of those companies…

  • anna10 on 03/04/2014 - 08:00

    Is who currently w' aami?

  • [Deactivated] on 03/04/2014 - 08:07

    After being with AAMI for well over a decade, they finally lost me when they sent a renewal for almost $800 on my little Lancer wagon - up over $300 on the previous year. After a quick search on the net I was soon signed up with Progressive Car Insurance, which is the biggest car insurer in the US, at under $500 again.
    Bye bye AAMI!

    • ar993 on 03/04/2014 - 09:31
      +1

      Same story with me. Had been with AAMI for last 7 years, got renewal notice with payment of nearly $900 for our 2008 Astra (and I've never made any claim in my life). A quick search with Coles got $560 and Bingle $540. Called Coles and they offered $100 less than Bingle. Hence, got the car insured for just $440 - HALF of what AAMI asked!

    • [Deactivated] on 04/04/2014 - 19:49
      +1

      Mine was too 220 more then previous year .. shot them a quick email and came down over 340 so ended up cheaper than previous year … you don't ask you don't get ;)

      • ar993 on 07/04/2014 - 10:53

        I did call them and asked about the price. Unfortunately the girl who picked up the phone was indifferent to my concern. It was like, suck it up of leave if you don't like the price. Couldn't be bothered to try again with them.
        Unfortunately, review of Coles Insurance is horrible on the net! Hhope I won't have to make a claim :)

  • cinnamon85 on 03/04/2014 - 08:40

    Nah I am not with AAMI and never will be with them! So the expensive quote was nothing to do with a renewal or loyalty, it was for a brand new customer!

    either way, i still dont understand how who your previous insurer can change the price of your policy!

  • The tiger on 03/04/2014 - 09:00
    +1

    Hi Cinnamon 85, I had been with Racv for almost more than 25 years and I was their golden or diamond card member. I also paid them for the yearly road assistance service. Their premiums always comparatively more expensive. I remained with them because of their reputation , and Coles Ins. was not in existence yet.However after one time my fault accident, thereafter my car premium shoot up like a rocket inspite of my repeated phone appeals since it was my first time fault in all unceasing 25 years. But the answer was NO. Loyalty does not not count unfortunately. After my daughter's recommandation, I got a quote from Coles ins. of course telling them my own fault accident case, got the quote far cheaper and they threw in me the 12 months free road assistance free as well. Thereafter no looking back .I am now wondering why I had stuck so long with RACV - premiums so excessive and they just did not value my loyalty - 25 years without any claim to them. Strange is they do not bother much about my departure from them even I tried to approach with Coles' s quote for matching purpose. I think they are BIG - headed.

    • cinnamon85 on 03/04/2014 - 09:05
      +1

      Thanks guys, but i am NOT already with AAMI so the quotes above were done online based on a NEW customer joining. It wasn't more expensive for loyalty as i am NOT already with AAMI. It was a price for a brand new customer signing up with AAMI online, nothing to do with loyalty as i am not already with them…

      • timmypete on 03/04/2014 - 10:37

        Do you live in an apartment block? AAMI quotes more if they think there is an existing customer at that street address.

        • cinnamon85 on 03/04/2014 - 10:44

          Nope i dont live an apartment block, just a normal street with normal numbered houses…really doesnt make sense!

        • timmypete on 03/04/2014 - 10:52
          +1

          Okay. I'm not sure why then, but in a post below I outline some experiences with their quoting system trying to identify prior customers.

          I've run AAMI quotes through a separate computer on a VPN (to exclude IP & cookie based tracking) and there seems to be some aspect of the system that gives a significantly less competitive rate if it thinks you're an existing customer, this seems to work if you apply for a quote with a date of birth one day younger than actual or for an address the exact opposite side of the street.

        • cinnamon85 on 03/04/2014 - 10:59

          thats interesting about the ip address! they are very sneaky!!

        • timmypete on 03/04/2014 - 11:03

          Not sure if they do use IP/cookie based checks or not. I had noticed their pricing discrepancies on my PC and I tried the VPN as part of my tests to try exclude other factors.

          What my tests seemed to conclude was that the pricing seemed to be person-based from a database of DOB/address. They might be also using IP/Cookies/other PII but I couldn't confirm or deny.

  • Noblejoker on 03/04/2014 - 09:37
    +2

    As someone who works inthe industry it saddens me to see BS rating scheme and even worse BS excuses for stupid price differences. Just makes everyone look like a fool.
    I don't know AAMI system but most car insurance rating db wouldn't be fine grained enough to work prices out at street level let alone at house level. For most they go by postcode.
    They also wouldn't have access to claims history at that address unless it was there own system. There is no free central repository of that sort of info that is checked each quote (however it is checked at claim time at a cost to see if claimant have been honest about their history)
    My guess on the pricing variances are
    1. a degree of randomness
    2. pricing differences for 'previous insurer' based on AAMI understanding of who they are trying to beat I.e. cheaper price against cheaper competitors

    As I have said here before by all means shop around but do so wisely. On paper all companies look similar but I can tell you for fact there is a huge difference come claim time between different insurers e.g. choice of own repairer & speed of repair, quality of repair workmanship, new/genuine vs reco/aftermarket parts, etc.
    So do shop around but choose wisely, read the brochures and ask friends for opinions. Usually a few dollars (10%?) get you a better product

    • anna10 on 03/04/2014 - 10:51

      Yes, I suggest that people read the Choice mag as it makes recommendations for your locale and yr age, eg SYD - older couple; single MEL - 24 yo etc etc. I used it as a guide and got a great price.

  • cinnamon85 on 03/04/2014 - 10:08

    So i just went thru every 'previous insurer' option, changing no other details but previous insurer on the AAMI online quoting system. If you choose AAMI as your previous insurer you get the most expensive premium! Along with Coles and many others who also gave an equally expensive price if you choose them as your previous insurer. The cheapest option was if u chose 'CGU' or 'RAC W.A.' as your previous insurer, they gave the cheapest price premium.

    There was a $127 difference between the highest and lowest with many prices in between. Nearly half of the previous insurers give the expensive premium price but only 2 specifically give the lowest premium price. With the other half of previous insurers giving many different prices in between.

  • timmypete on 03/04/2014 - 10:47
    +3

    I'm a disgruntled former AAMI customer who experienced the same. When I was 24 they bumped my premiums significantly (no claims made) on renewal. I raised this with them and said I was moving elsewhere.

    Over four calls and ~90mins on the phone they convinced me to wait until my 25th birthday because my history with them and my parents being 10 year customers meant I was going to be eligible for a significantly reduced rate.

    I was the sucker. On the week of my 25th birthday I moved 1km away and the premium on a 2004 X-Trail rose by $350/y while the insured value declined by $2,000 and I allegedly moved to a lower risk category. This was when I discovered that the AAMI new customer quoting system tries to work out if you're actually an existing customer. If you change date of birth (even by a day) or street address (even by single house) it'll give you a more competitive rate, but if it thinks your'e actually an existing customer you'll get one only marginally better than the quoted lazy tax rate (ditto if you call the call centre to complain). I've been able to reproduce this with other AAMI insured friends DOB/street addresses.

    I was extremely disappointed about their conduct when I was going to change pre-renewal and the call centre spun a stupid line about how sides of the street can seriously affect insurance risk and weather patterns (not to mention being a single day younger apparently being as significant an insurance risk).

    Needless to say, I'm paying about 40% less now with a different insurer* and will move away if they charge lazy tax. I'm not going back to AAMI based on what I think was very sly conduct with regard to both my initial call to cancel (where they convinced me otherwise) and their blatantly dishonest spinning when I called them out on it.

    Ugh.

    (*) Full disclosure, the new policy is also comprehensive but excludes u25 drivers, so this isn't an entirely apples:apples comparison.

  • cinnamon85 on 03/04/2014 - 10:57
    +1

    wow glad u have found a better company now tplen! the 'discount' they offer for ppl who have multiple policies is pointless really! cant believe even 1 day date of birth makes a difference, i havent tried that one!

    • timmypete on 03/04/2014 - 11:27
      +1

      To be honest I don't think its unreasonable that they offer reduced premiums to entice new customers. They are a business and need to be able to sustain their operations. Ditto with non-egregious increases that some term the lazy tax.

      What really irked me was the mendacity of their dealings when I called to cancel the first time, and that they are deliberately misleading when you try give them the benefit of the doubt a second time.

      From my limited interactions AAMI seems to be the worst of the mob (the other two I've insured with seem OK, not great) but obviously there could be more rotten eggs I haven't had the pleasure of dealing with yet.

  • BuyoTheCat on 03/04/2014 - 11:57
    +1

    Maybe AAMI knows something about your place that you do not….Grab a shovel. start digging!

  • IrishPete on 03/04/2014 - 12:00

    Insurers are businesses, not charities or governments.

    So the premium will be basically based on two things:

    1) risk
    2) marketing - how hard they are going to try to get you as a new (or returning) customer.

    I think 2) is what you are seeing.

  • surm on 03/04/2014 - 15:26
    +4

    This weird AAMI car insurance premiums for "the number either side of your house is significantly cheaper than yours" happened to me and it was the reason I left AAMI.

    In my case, the annual difference was like $600 if I were to renew.

    I rang AAMI and worked with a CSR to reproduce this and asked why my house is penalised all of a sudden.

    The CSR said:

    • it could be because of the previous claim history, however, we were the first and only occupants of this address and we hadn't made any claims before.

    • it could be because we were a corner block, however, we weren't. Moreover, the corner block's address on my street attracted much less premiums than mine and the CSR could not explain the reason.

    In the end, the CSR said his computer system didn't show the reason but he couldn't do anything about it.

    .

    • cinnamon85 on 03/04/2014 - 15:44

      yeah thats exactly the same as my situation. i had a bit of a play around with friends addresses who were the only owners who had lived at the house and who had never made any claims…and same thing…their prices were higher than other houses in their street. its really unfair and im guessing most ppl wouldnt even check other addresses or be aware of this. the friends addresses i used also were not customers of aami already.

      id still love to know how they could justify whoever your previous insurer is affecting the price of the premium as well. i cant even think of any excuse they could make for that. as it was such random 'previous insurers' who had the highest and lowest prices. and choosing aami as ur previous insurer gave u a higher premium (the same price as alot of other 'previous insurers') really doesnt make sense

    • timmypete on 03/04/2014 - 16:37

      Irishpete's point is spot on with marketers and the experience of the OP, and surm and myself shows it is widespread.

      As OzBargainers it is incumbent on us to not encourage this sort of behaviour by voting with our feet.

  • NancyCat on 03/04/2014 - 16:53

    Another ex-AAMI customer here. Now, with GIO.

    Check this out…https://www.ozbargain.com.au/node/132972

    • IdBuyThat4aDollar on 04/04/2014 - 10:48

      Funny thing is AAMI and GIO both fall under the Suncorp group.

      • NancyCat on 04/04/2014 - 12:21

        I think that's Suncorp's way of catching all the fish in the pond.

  • akyeeeahdude on 03/04/2014 - 16:57
    -2

    Wow most of you guys are way off…

    There is no increased risk at the address - when you type in your street number they are locating you as an existing customer and loading the price.

    • cinnamon85 on 03/04/2014 - 17:19

      Alister - as said in multiple posts above…I am NOT with aami so they are NOT locating me as an existing customer. I have NEVER been with aami.

      Also as previously said I have tried it on a few family and friends addresses who are NOT with aami & never have been and also are the only ppl who have lived in the house so there is no way aami can associate the address with a current or previous customer.

      Sorry alister but noone above is way off as we have proved they are not being located as existing customers.

  • Jamesalex02 on 03/04/2014 - 18:26

    Ok first time comment so don't rip my head off. I work for an insurance company (hear me out please). With insurance it's essentially you pay for what you get. I get calls everyday from people saying other companies are cheaper. Yes they are because there are different ins and outs in policies. Agreed value or market value etc. but also look at what events insurers cover when making claims. So many times I have customers calling back a year after leaving us because their car or house wasn't covered for a claim with another company. Yes pricing is erratic but it's just like health insurance, petrol, electricity etc. read the PDS. So many people buy on price not value. I know sounds like a spiel but it's true. I realized this when I started in the industry and quickly changed company. If u never claim and ur crystal ball works then buy based on price.
    Ok ready to get smashed and abused……… Be kind please

    • NancyCat on 03/04/2014 - 18:34

      Can't agree more. Well said.

      • Jamesalex02 on 03/04/2014 - 18:37

        Thanks NancyCat. My theory is people who have made claims know the value of insurance and are willing to pay a higher premium for peace of mind. People who have never claimed tend to shop around based on price.

    • cinnamon85 on 03/04/2014 - 19:19
      +4

      i agree with what you are saying completely but its not really the point of this post at all. sA with most things u get what you pay for but the point of this post is about AAMI having a completely different price for one house number different and also a completely different price depending on which 'previous insurer' you choose. Ranging up to $150 in price differences, and this is not based on previous claims at an address as prooved in comments above.

      Ive had a look on other insurance sites, including RACV and their quoting system doesnt change the price based on house number and it also doesnt ask you who your previous insurer is which is what it should be for everyone.

      Me personally would never go with the smaller less well known companies for insurance as i know u get what you pay for. Even though i have never made a claim i like the security of being with a bigger company, not saying there is anything wrong with smaller companies, i just like the bigger companies.

      However the point of this post is specifically about AAMI's quoting system…giving completely different prices when the only thing changed is ur 'previous insurer' or one house number different……why should someone pay up to $150 more to insure their car just because they had a different 'previous insurer' than the next person? And why should 2 different people who live next door who are the same age/driving/claims history with the same car have a $150 price difference in their policies?

      • Jamesalex02 on 03/04/2014 - 20:10

        As harsh as it is. Each address has it's own history. So price will vary even next door or around the corner with some companies. As far as previous insurer….. No idea lol

      • NancyCat on 03/04/2014 - 20:35

        I agree with cinnamon85 about bigger insurance companies. That's why I'm with GIO. It's not cheap, but so far so good, can't complain. And we do get a (very small) discount for combining it with the house insurance, that's our way to save money.

        As for the 'previous insurer' issue, could that be a question to do with marketing? To find out where their (potential) customers come from? Like 'how did you hear about us' kind of questions…just a thought.

        And I do find the price difference base on house numbers a little strange.

  • keverns on 03/04/2014 - 18:55
    +2

    out of topic but another tip for car insurances… when you choose agree value.

    i.e you bought a 10 000 dollar car.

    dont write you want to agree at 10000, write 9999, and you will notice a premium price difference as well.

    • [Deactivated] on 03/04/2014 - 22:09

      Or you can over insure it for 13000 pay a higher premium but if your car gets smashed you cover everything even if it's your fault.

  • big on 03/04/2014 - 21:55

    I'm with AAMI. Got a high quote on renewal as well.
    One call and they price matched budget direct…..

    Following year the quote was better and I tried 3 others,
    but could get a cheaper price.

    Once you have an accident your a stuffed.
    No choice of repairer and the one I had did a bad job on a nearly new car.

  • bauser99 on 03/04/2014 - 22:11

    This is the way it works…

    1. AAMI quotes a great price if you come from another competing insurance company. They target specific customers (e.g. you may get a great quote if you are with NRMA)

    2. Once you sign up, they bump up prices at renewal. Not so much the first year but increasingly higher in the following years. They rely on people being lazy and not bothering to compare with previous year premiums and other insurers.

    3. To avoid people going online and asking for a brand new quote (at the lower "intro price" as per point 1 above) instead of renewing the existing policy (at the higher renew price) they check your address against their database and if they see you have an existing policy they give you the higher price (same as your renewal notice). That's why if you enter your neighbour's address the quote is lower (unless he/she is also with AAMI then you would get his/her higher renewal quote)

    As you cannot simply put your neighbour's address (it would be nice but if there is a problem they would not cover your as you provided incorrect details) best course of action would be to simply shop around and then call them up and get them to match the lower competitor's quote ;-)

    • timmypete on 03/04/2014 - 22:44

      Bauser99 - This is nice and succinct. Except in my case AAMI wouldn't match competitors.

      JamesAlex makes very valid points and I stay with the major insurers but disagree with AAMI's method.

  • cinnamon85 on 03/04/2014 - 22:58
    +1

    bauser99

    1. Ur first point is incorrect! If u have a look on their quoting system & play around with previous insurers u will find the 2 who give the cheapest price are 2 small unknown companies I haven't even heard of before - definitely not a competing company of aami by any means.

    2. Ur second point is valid but is nothing to do with the original post whatsoever.

    3. Ur 3rd point - i am repeating myself again but I am not an existing aami customer. I never have been so the price has nothing to do with being an existing aami customer. It has also been proven once again as written above by testing family & friends addresses who are NOT with aami never have been & who r the only ppl who have lived at their address since the house was built yet their quote was coming up as more expensive than their neighbours. It has nothing to do with being an existing aami customer as myself & the addresses I tested r NOT with aami & never have been and most of us r the only ones who have lived at the address since the house was built so there is no possible way to have any claim history or previous/current policy at the address.

    • cameldownunder on 08/05/2014 - 17:08

      Maybe the previous owner ot tennant had an AAMI policy.

  • No ONE on 04/04/2014 - 01:13

    What if you signup with address that provide cheaper quote. Get the insurance and change the address over the phone once u r done and tell them u made a mistake if u want to buy AAMI insurance.

    • perez on 04/04/2014 - 09:52

      I very much doubt that will work as when making a change, you normally need to pay the difference in premium.

      It's the same whenever you make a change to a policy - e.g. change address, distance per year, different excess, add drivers… whatever you change = a potential change in premium.

      • No ONE on 04/04/2014 - 12:13

        I guess it will only effect the policy if you change from one street or suburb to another but might not effect same street with different number. That's my assumption.

        • cinnamon85 on 04/04/2014 - 12:21

          oz bargain 3 - please read above posts and the original post and that is what this topic is about - different street numbers coming up with different prices for insurance policies. i.e. your neighbours house being cheaper or more expensive than ur own address to insure exactly the same car.

        • No ONE on 04/04/2014 - 19:33

          You misunderstood my comments. The above reply was regarding changing the address after getting insurance and you might you not have to pay any extra and that was my assumption. If you read my orginal comment then the above reply explains it.

        • cinnamon85 on 07/04/2014 - 11:02

          ozbargain3 - yep i get what u meant now, thought u were talking about changing address in general but makes sense now. Not sure if it would work if ur just updating ur address after getting the policy maybe someone can try it! I wont be signing up with them to try it tho lol ;)

  • JimmyF on 04/04/2014 - 10:55
    -1

    Re previous insurer - They are aware of the pricing of others and adjusting the price to match.

    re neighbour being cheaper - Sounds like your house is in the database as having a claim/payout.

    • cinnamon85 on 04/04/2014 - 11:06

      level380 - please read posts above, my house is not in database as having a claim/payout nor as a previous/current customer. as confirmed with family & friends addresses who have been the ONLY people to live in their house since it was built, NEVER being an aami customer before and NEVER making a claim on any insurance yet their address was still giving a higher price than others so its nothing to do with having the address in their database as it is impossible.

      • EnALup on 04/04/2014 - 12:43

        That is really strange and confusing why AAMI is doing that. Have you called them and asked? Talk to the supervisor, if the rep. cannot answer.

        Not sure, but can it be:
        1. That your house is bigger than your neighbour's house and companies know that you can pay more? Also is it on an intersection?
        2. It might be that your neighbour used to be a customer and changed provider and might be getting a discount based on no accident history or claim or he already have one car with them getting a discount.
        3. As insurance companies also provide Home and content insurance. Was there any incident of robbery or accident happen to this property?

        Just a guess, if still not happy with their answer, take the screenshot of the quotes and file a complaint against them. Though not sure if ombudsman can help, but atleast you might get your
        answers.
        http://www.fos.org.au/
        http://www.fairtrading.nsw.gov.au/ftw/Consumers/Buying_servi…

        • cinnamon85 on 04/04/2014 - 12:53

          nah im not going to call them as its not worth my time. im just going to sign up with someone else who will give me an honest quote to begin with.

          1. my house and the other houses ive tried are definately not bigger than the neighbours. also it wasnt just one neighbour, multiple street numbers were tried within the same street all giving different prices ranging in price up up to $150 for the exact same car. also my block/house is smaller than the houses that were coming up with a cheaper price so size of house or land is irrelevant and especially irrelevant for car insurance.

          2. this is also not possible as the house numbers i have tried of myself as well as friends and families have made no claims and never had an accident and also i had chosen the option to see if having house insurance with them already made a difference in price but it did not.

          3. and definately no robbery or accident at my address or my friends/families addresses that i tried. no insurance claims whatsoever. as mentioned in many posts above.

          there is no logical reasoning for this as far as i can see as it is completely random i have thought of and tried nearly every possible scenario i can think of and none of it works out.

          thanks for the suggestion of ombudsman but im not going to bother looking into it anymore just not going to sign up with them and wanted to let others know

        • JimmyF on 04/04/2014 - 13:04
          +1

          But this is the thing, its not completely random as you say. Its consistently pricing your place higher, so there is a reason they are pricing your house at that level, NORMALLY its because of a claim on the house in the past, so its classed as a higher risk. If you say you haven't had any insurance claims (ANY from theft to trees falling on the house, to water damage) then who knows why its doing it.

          To the jokers who say goto the ombudsman/fair trading etc, there is nothing to claim here. What can you claim? Oh boohoo AAMI are pricing their product higher than someone else? Well you are not forced to take the product. Its like going to the ombudsman because coffee shop xyz is charging $5 a coffee but the place next door is doing coffee for $4.

          As you said, these are quotes. If the price isn't right for you, then move on. But its funny you spent so much time on pricing the place next door to you when this quote was already more costly than the others. The only reason people do that is if they have had a claim and trying to see if the price was jacked up for them by pricing the place next door. I know as I've had a claim in the past and did this same thing when my renewal came in!

        • cinnamon85 on 04/04/2014 - 13:22

          definately no claims theft or any form of insurance claim at all at my house. same with friends/family addresses that i tried.

          and no, that is not the reason why someone would price another house in their street. also i priced multiple houses in my street not just next door and i also priced friends/family addresses and houses in their street. i had recently read an article that was about insurance companies jacking up prices on different houses in the same area, thought nothing of it at the time but of course i wanted to see if it was true when my renewal came. so no, it was not done because of a claim in the past. as i have said MANY times above. I have NEVER had any insurance claim, never had an accident, never had anything at all to do with insurance companies at all apart from paying the premium each year. also no theft/robberies or any police reports. The simple reason is i was bored at work & had time to fill in with an insurance renewal (NOT from aami) sitting in front of me that reminded me of the article i recently read, thats all there is to it, wasting time at work pretty much. NO CLAIMS WHATSOEVER!

          but yes, im not bothering contacting aami or doing anything further about it, im just not signing up with them for insurance. if someone gives me an expensive price i cross them off the list & move onto the next company. i was simply letting others know what i found out. and this post was not just about neighbours houses it was also about previous insurers giving different prices.

        • NancyCat on 04/04/2014 - 13:28
          +1

          nah im not going to call them as its not worth my time.

          Noooo…please don't give up… we need you to solve the mystery.
          (Just kiddin')

        • cinnamon85 on 04/04/2014 - 13:37

          i definately aint solving any mystery lol…just aint signing up with aami!

        • IdBuyThat4aDollar on 04/04/2014 - 14:48
          -1

          nah im not going to call them as its not worth my time

          Mate reading through some of you're posts it sounds like you've done thorough test case analysis on their online quoting system!

        • cinnamon85 on 04/04/2014 - 14:52

          and that i have! i was at work with alot of time to spare. i dont really care what aami's response would be so no reason to call them. was just informing others what i found out.

        • timmypete on 04/04/2014 - 14:53
          +3

          But as two separate people have noted, the CSRs with AAMI haven't been able to act in some egregious overcharging circumstances.

          Consumers voting with their feet (and identifying this as the issue when cancelling), articles like what was on The Checkout, and threads like this one are ultimately the way that we might be able to promote some change with AAMI.

        • cinnamon85 on 04/04/2014 - 15:05
          +2

          exactly tplen1! couldnt have said it better myself. whatever the reason their quoting system is how it is, is irrelevant. The point of this thread was to simply make others aware and lookout for it when searching for insurance urselves, why waste our time contacting aami if we have no intention of signing up with them! :)

  • endotherm on 04/04/2014 - 13:24

    You don't know what is on their database. They could have made a mistake and associated your address with somewhere else where a claim was actually made. Also can you be sure that the builders weren't a victim of an incident where they made a claim (stolen hot water system/appliances, vandalism etc) and the address got a black mark accordingly. I agree is looks wrong because only AAMI are doing it. As stated above, AAMI and GIO are both from the Suncorp group, and I assume GIO aren't the same price.

    • cinnamon85 on 04/04/2014 - 13:34
      +1

      oh gosh, this is getting a bit off topic. as i have said it is not just my address that was coming up more expensive…friends and family addresses were also coming up as cheaper and more expensive than their neighbours houses and also other houses in my street were just as expensive as mine and others were alot cheaper.

      i dont really care what their reason is and i dont know why i have to keep saying there has been no claims at my address. there were multiple other houses in my street quoted at the same price as mine as well as many other houses that were quoted up to $150 cheaper. it wasnt just my house that was expensive so nothing specifically to my address.

      either way i dont care what the reason is and these scenarios of 'why' it might be expensive are ridiculous. so something the builder possibly did at an address 15 years ago is now affecting someone who wants to insure a car at the same address? seriously! claims on your insurance policies are only relevant for 3 - 5 years anyway so something that happened in the past at an address should not affect it. with privacy laws these days they would not have access to much information anyway.

      please read all above posts….its NOT just my address that is coming up more expensive. there were many different houses in my street coming up the same price as mine with just as many up to $150 cheaper and other prices in between. the point of this post was to let others know about it when looking for renewal policies!

  • windrc on 04/04/2014 - 13:41
    +2

    Insurance company calculates the premium based on rating factors of the risk(e.g. your property) that they are underwriting. Location is definitely a rating factor, and given a street address, the insurer can look up the geocode (long. lat.) of the property, and with that information, there are charts that they can look up to work out the rating factors or amount they should charge. One example is for looking up flood risk, the house next door can have a different flood score compare to yours, and the flood scores are based on several information such as historical data provided by councils, statistic, and scentific predictions to calculate the likelyhood of how often and severe the property can be flooded. E.g. flood to 3 metres once every 50 years. These flood information are publicly available, eg go to www.ga.gov.au/flood-study-search and you can look up your address. So it is logical that property in the same street can give out different premium, such as the house down the bottom of the valley is likely get flooded compared to the one up on the high side.
    For the insurance company that rates the same for everyone in the same zone basically means they are not rating in fine grain, and they just charge everyone the average premium. So it's either good or bad news depending on how your house rates compare to the average.

    In regards to previous insurer, again it can be another rating factor because not all insurer rate the same as pointed out previously, some take a higher risk than others, some are funded by oversea country and able to take in higher risk due to lower tax rate etc. Eg youi is from south africa with funded coming from the states and uk.

    The bottom line is, insurance is based on a consumer funded pool model where the insurer collects premium amount based on the likelyhood that they need to pay out using other customer's premium, and no one like paying other people's share if someone choose to live in a high risk area, e.g. beach front or forest area. And also if a insurer are not comfortable in taking up the risk, they charge a higher premium, which basically mean pay up or bugger off.

  • cinnamon85 on 04/04/2014 - 13:48
    +3

    sorry but that is waaaaay off topic about the flooding. this post was about CAR insurance, not house insurance. and my street is all on one level, not on a hill so i fail to see how 2 houses on the same level of street have anything to do with flood risk for insuring a CAR giving prices of up to $150 difference! maybe for house and contents insurance. but not for car insurance!

    but the point of this post was simply to let ppl know when getting quotes for insurance, thats it. not really fussed about reasons why now.

    • windrc on 04/04/2014 - 14:01
      +2

      Does it matter if your garaging address is at a high flood risk zone? I am just pointing out premium calculations are based on risk factors, every question they ask you can be related to how they work out the premium. Not saying it IS due to the flood score. My post is simply explain how premium is calculated and what factors can affect the price, which i see most people who commented above thinks it's purely based on randomness.

      • timmypete on 04/04/2014 - 14:12

        Flood risk sounds like a very logical source of the seeming randomness in pricing between houses for non-customers and no claims history at the address.

        But as a few of us have outlined already there are circumstances with existing customers where the disparity is decidedly not random.

        Pro tip when dealing with a change of address: try get a new quote for your existing address and new address via the website, and only then call up your insurer and advise them of the change. If the CSR gives you the usual script about increased risk, compare this new amount against your research to make sure they aren't adding lazy tax.

        I think I would have avoided at least a few of my troubles if I'd had the foresight.

  • adr8 on 04/04/2014 - 23:10
    +1

    I am an existing AAMI customer, I got a few quotes and it was significantly dearer than the the quotes using my neighbours addresses.

  • BargainLuver on 05/04/2014 - 13:32

    I used this dodgy AAMI policy to my advantage. My house has been with AAMI and when it came time to renew, i insured using an alternate address which is technically and legally also the same address. It was a while ago now, but there was definitely a good saving just by changing the address. If you're wondering what I mean or how this could be, I live on a cul-de-sac which is technically a private street, so we have an address for the private street and also and address that considers us a sub unit of the street that we're perpendicular to. We get mail and for both addresses but this is the first time I've used it to my advantage.

  • aquamarc on 05/04/2014 - 22:17

    Here's my review on Product Review
    http://www.productreview.com.au/r/aami-car-insurance/199562.…

  • cameldownunder on 08/05/2014 - 17:13

    I just got a phonecall from my wife. She told me that moving across the road, the car insurance with AAMI went up by $100. Then I googled and came across this thread. Now I am not one that gets things like that go easyly. I will call them and see if they can explain and refund me the difference. If not I'll switch next opportunity.
    I't almost a bit like at work: If you do not change job/company you do not get significant improvements.

  • ozboygsl on 10/05/2014 - 09:30

    I first became aware of this practice when applying for home insurance. I waqs asked how many { not if} times I had been broken into in the last 5 yrs. The bimbo who was "serving" me suggested I was a liar when I told her never….. biggest mistake she made that day. Bottom line is insurance scum are very inflexible, and dont like to be told they are wrong.

  • ozboygsl on 10/05/2014 - 09:34

    I first became aware of this practice when applying for home insurance. I waqs asked how many { not if} times I had been broken into in the last 5 yrs. The bimbo who was "serving" me suggested I was a liar when I told her never….. biggest mistake she made that day. Bottom line is insurance scum are very inflexible, and dont like to be told they are wrong.

  • uccoffee on 21/05/2014 - 10:57

    AAMI is so expensive this year , nrma is like $150 cheaper, and even coles is $10 cheaper.
    It was the opposite 2 years ago :(

  • Kkuba on 19/11/2014 - 10:20

    Wow, many interesting stories, but it seems my experience so far does not align with this.

    Newly purchased car this year, first time insurance, and I have gone with AAMI. I have maxed out my excess to reduce my premium.

    If I look at some of the other insurers mentioned, such as GIO (I also checked RACV), people are saying they are getting cheaper quotes? I matched my agreed value to AAMI, then adjusted the excess to be as close to AAMI's as possible (still slightly lower), and the premium is still showing to be anywhere between $400-600 more. So unless AAMI charges me a lazy tax of close to $400, I don't think I will be changing.

    I am stunned that people are getting quotes from other insurers, which are so close to AAMI, I thought AAMI were very cheap, but still decent. Seems some of the other 'better' insurers are not so much more expensive for others.

    • timmypete on 19/11/2014 - 10:50

      This was my experience when I first signed up, and as mentioned above the price change was massive a year on (possibly complicated by an address move and no longer being >25yo).

      I'm interested to see how this rolls out for you next year. Out of curiosity, is this your first time with insurance because you're young and just got your license?

      • Kkuba on 19/11/2014 - 11:30
        +1

        Interesting.

        No, I just did not have insurance on my previous vehicle (for 8 years), as no-one would give me insurance on a car that had existing panel damage.

        I am over 25 and have had my licence since as early as possible (18 in VIC)

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