Big Discrepancy in Comprehensive Insurance Quotes $800 vs $1400

teacherer on 15/12/2017 - 19:13
Last edited 15/12/2017 - 19:14

G'day guys
I just purchased a 2011 Prado GLX with 100,000km and have been looking at insurance quotes as a 21 year old. Providers such as AAMI, RACQ, Allianz etc have all offerred between $1200-$1500 pa.
I tried budget direct and they have offerred the same at $800.
The only difference I can see is it has no roadside assist which can be added for $80 pa.

Is anyone kind enough to explain why this discrepancy might be and some experiences with budget direct?

Budget direct quote https://imgur.com/EC5kM59
Link to their policy- https://www.budgetdirect.com.au/car-insurance/comprehensive-…

RACQ want $1400
Link to their benefits https://www.racq.com.au/insurance/get-insurance/car-insuranc…
(Their quote had next to no info)

Any light someone could shed on this for me would be awesome.

Thanks

Financial

Comments

  • k-rokfm on 15/12/2017 - 19:18
    +1

    Cause different insurance companies weight things differently - age, location, experience. No 2 quotes will be the same. What’s cheap for you will be expensive for someone else with very similar details and vice versa.

  • JenPat on 15/12/2017 - 19:51
    +2

    …Please be careful with Budget Direct. I had a not at fault accident in a remote town. They refused to have my car transported to the nearest large regional centre for it to be fixed. Luckily the other driver was with GIO, so i when through them. Lesson learnt, never again.

    • ihbh on 15/12/2017 - 20:53
      +1

      Yep, Budget are not cheap for nothing. There's always a catch.

  • sandman87 on 15/12/2017 - 20:02

    Some insurers don't want riskier drivers on their books so they try to discourage them with higher premiums. They'd rather have a whole bunch of people paying premiums each year and never claiming.

    I always experiment with the data I put into the insurance calculators. Some companies allow you to estimate the total distance you travel in a year. Modifying that can sometimes change the premium. Also how to store the car. Whether its garaged, carport, on street, etc. If you're able to, insuring it under an older persons name and nominating yourself as a listen driver could reduce your premium.

    • kahn on 15/12/2017 - 20:37
      +1

      nominating yourself as a listen driver could reduce your premium

      If you are driving by some kind of sonar technology like a bat, then I don't think that would lower your premium. Besides, I don't think any insurers ask for the method of driving (sight, listening, smell, long canes protruding from car).

      • sandman87 on 15/12/2017 - 20:51
        +2

        clap clap

        • dasher86 on 16/12/2017 - 05:06
          +1

          Don't mess with his sonar.

  • PJC on 15/12/2017 - 20:47
    +1

    For your age $800 is a good price. We were with Budget Direct for a few years and even had to make a claim (Magistrate ruled in our favour).

  • teacherer on 15/12/2017 - 20:50
    +1

    Hey guys
    Update- I talked racq down to $100 more than budget direct.
    I felt more confident with racq and went with them. Especially because I'll be in central Queensland and need reliable roadside assist

    • SnoozeAndLose on 15/12/2017 - 21:02

      How did you manage to talk it down?

      • teacherer on 15/12/2017 - 21:07

        Just told em budgets price on chat, they didn't even ask for proof

        • SnoozeAndLose on 15/12/2017 - 21:09

          Thanks I would do the same next time

    • zuuutoootuuu on 15/12/2017 - 21:07
      +1

      did the same with RACV, I knocked them down about $500

    • PJC on 15/12/2017 - 21:38
      +1

      Is that $900 with roadside assistance?

      • teacherer on 15/12/2017 - 21:57
        +1

        1050 plus roadside assistance for racq.
        1050 to match budget direct + the 100 I mentioned
        Apologies, when I added bull bar, tow bar etc and my wife, it changed to $1000 with budget.

        I should have included that.

        • PJC on 15/12/2017 - 21:59
          +1

          Don't be loyal. Shop around each year.

  • [Deactivated] on 16/12/2017 - 00:17
    +1

    Yep - i've seen some big discrepancies.

    I once got this huge discount - 40% - from NRMA as i had made no claims in 6 years or something.
    Thing is, i hadn't been driving for those years.
    No car, no driving, no insurance, no claims.
    They didn't care, but everyone else did.

    Always shop around for car insurance.
    I always give BS information to test first - so they all don't get my personal details.
    Don't make up the stuff that influences the rate though.

  • bobbified on 16/12/2017 - 11:52

    For insurance, price alone should never be used as the decider.

    Different insurers charge different prices and provide different experiences when it comes to claims. Not all policies are created equal so make sure the PDS document is read and understood.

    Many people may find out at the time they make a claim that the cheaper policy they purchased doesn't cover certain things or the claims process is very drawn out and cumbersome, and they end up with a very bad experience.

    Having said that, the most expensive policy isn't necessarily the best also.

    For me personally, I'd stick with the larger names like RACQ, AAMI, Allianz, etc. if the prices are only slightly higher than a low-cost insurer.

    • teacherer on 16/12/2017 - 13:18
      +1

      That was my thoughts too, thanks mate

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