Comprehensive Car Insurance Renewal Costs

nomster on 09/12/2019 - 10:18

I have a problem than I'm trying to digest.

All things unchanged, my policy renewal is 7.5% more than last year. (A 7yo Hyundai, nothing special in Parramatta, NSW)

From Jan 2019 to the most recent renewal quote I have:

  • Market Value insured. (another year of depreciation)

  • No claims, no existing alterations.

  • Added 2 new policies (Wife's Car + CTP)

Govt charges remain the same, premium + GST make up the bulk of the renewal increase.

Can anyone shed some light on how they may understand this increase? The web chat told me they reevaluate on risk of the area.

To me this suggests, my car's diminished value, loyalty, additional policies are completely offset by whatever this increase is (and then an additional 7.5% on top of that.

Automotive Car Insurance Insurance

Comments

  • Ryanek on 09/12/2019 - 10:24
    +3

    Probably due to an increase of claims last year, especially all that hail damage.

    • nomster on 09/12/2019 - 10:32

      Yeah, I see.

      It's also an global market isn't it.. Maybe other problems have arisen somewhere internationally.

    • EightImmortals on 09/12/2019 - 14:08

      SO where did all the money go that they were collecting all of the previous years? :)

      • HighAndDry on 09/12/2019 - 15:31

        Paying out other claims, profit.

        • EightImmortals on 09/12/2019 - 16:07

          Some things shouldn't be 'for profit'. Water, el;electricity, insurance, banking and religion amongst them. :)

          • HighAndDry on 09/12/2019 - 16:08

            @EightImmortals: Water sure. Maybe even electricity as it's a basically a necessity. But why insurance and banking? They're businesses. You don't want to pay, you don't have to use them.

            • EightImmortals on 09/12/2019 - 16:10

              @HighAndDry: But we DO have to use them these days. Especially now that govcorp is trying to make cash illegal so whatever tiny freedoms we still have in that area, we wont have for long. And insurance is pretty much a necessity for anyone who can't afford a third party injury or or property claim.

              • HighAndDry on 09/12/2019 - 16:10

                @EightImmortals: Don't drive. Or buy insurance.

                You might as well say Woolies and Coles (and restaurants and cafes and your local grocers) can't make profit from food.

  • [Deactivated] on 09/12/2019 - 10:25
    +3

    Maybe you car has entered an age group associated with higher rates of collisions/theft.

    • nomster on 09/12/2019 - 10:31

      Someone told me teens - 20s are the highrisk! I'm 30 :(

      • [Deactivated] on 09/12/2019 - 10:41
        +8

        Age of the car.

  • apsilon on 09/12/2019 - 10:25
    +2

    Insurance companies have had to pay out a lot recently, they want that money back so everyone's policy goes up a bit. Shop around, loyalty gets you nothing but remember to actually read the PDS so you understand what you're really paying for. All insurers are not equal and price of the policy should be only one factor considered in the decision.

    • nomster on 09/12/2019 - 10:33

      Whats the canstar awards worth?

      Would there be a big quality difference between NRMA and Budget Direct in terms of coverage? (because i see so many ads for Budget Direct).

      I'm not looking for anything bespoke, just incase i crash the car haha

      • [Deactivated] on 09/12/2019 - 11:00

        You might want to keep away from YOUI. Different country but same call centre -
        https://www.stuff.co.nz/business/industries/87592174/youi-fi…

        • ESEMCE on 09/12/2019 - 13:09

          Interestingly, Youi seem not to apply a lazy tax premium increase every year.

          Each renewal I check out the opposition and the renewal price is either better or so close as to be not worth the hassle changing.

          • [Deactivated] on 09/12/2019 - 13:36

            @ESEMCE: My wife's car is with YOUI. They jacked up the renewal by 20%

            • ESEMCE on 09/12/2019 - 13:55

              @[Deactivated]: I've only got House and Contents with them.
              Been with them 5 years and as above, no Lazy Tax.

        • EightImmortals on 09/12/2019 - 14:07

          Had a windscreen claim with YOUI a month or two back. No problems and great service.

      • apsilon on 09/12/2019 - 11:56

        Canstar awards would have no value IMO. As for the differences, read the PDS of each, that's what they're for.

  • [Deactivated] on 09/12/2019 - 10:51
    +6

    Its called the lazy tax.

    If you switch insurance companies or start a new policy (signup fresh online and cancel your existing policy) you'll always get a better price than a renewal.

    • nomster on 09/12/2019 - 10:54
      +1

      I'm appalled that they're so brazen about it.

      • [Deactivated] on 09/12/2019 - 11:13
        +8

        Insurance, Electricity, Telstra, Foxtel etc all have the same approach.

        The only thing loyalty gets you is an annual price increase.

    • AirbusA389 on 09/12/2019 - 16:48

      i'm with RACT (Tasmania). I let my old policy expire with my new policy kicking in on the same day.

      car: honda jazz 2010, comprehensive insurance with full options.
      old RACT policy renewal: 5% ($40) with significant lower agreed value ($5900 vs $7200)
      new RACT policy: more expensive than old policy by $10 with higher agreed value $8600.

      new customers get the love.

      thank you all the old customers (renewals) who paid for my "discounts"!

  • isthisreallife22 on 09/12/2019 - 10:56

    Insurance costs have gone up this year, but they can only charge you when your old agreed price/period is finished ?

  • skinner on 09/12/2019 - 11:04

    At 7.5% you got off lightly. My old insurer wanted to increase my car insurance by 30% and doubled my household insurance. No claims, no changes to policy etc. Didn't seem to care when I queried it so helped me not care when I changed.

  • wannagrababargain on 09/12/2019 - 11:18

    Older cars are also considered a higher risk of being involved in an accident.

    My insurance went up about 17% last year and when I did a bunch of comparison quotes they were all more expensive across the board.

  • brad1-8tsi on 09/12/2019 - 11:28
    +4

    Lazy tax. Once they hook you they start increasing the premiums. Suggest you shop around.

    There is no sense to a lot of it. When i bought my car new it was $30k cover for $810. For the past 11 years that price has only varied +-$50 despite shopping around for the best deal. Car is now insured for $8k costing $770, I've had 4 different addresses in that time in very different suburbs (Carss Park, Zetland, Yowie Bay, Erskineville).

  • Islund on 09/12/2019 - 12:11

    From what I have seen in my insuring lifetime renewals always have a lazy tax

  • Summoner on 09/12/2019 - 12:12

    The web chat told me they reevaluate on risk of the area.

    It seems the Suburb you are living in has changed to higher risk area.
    https://propertyupdate.com.au/how-does-your-postcode-affect-…

    The risk factor of the suburb affects your insurance premium.

  • Lexus101 on 09/12/2019 - 12:52
    +2

    I think we are all in the same boat. Getting ripped off by insurers.

    I got tired of it and finally went 3rd Party for my 14yr old Toyota which is worth $6k. There are risk which I accept. If I hit another car, insurance pays them, I bear the cost for my own car. If someone hits me and they have insurance, then I am covered.

    BUT if they don't have insurance, I am pretty much done for. Only recourse is to sue them for damages in civil court. Probably too much money and time to get lawyers involved, and not much in return.

    So please weigh up your risk vs benefit before doing anything.

    Guess what I am saying is Comprehensive has it's place to fully cover you, but if your car is really not worth that much and you feel that you can write it off in a serious accident, then 3rd Party is going to be fine in that scenario.

    Good Luck.

  • ESEMCE on 09/12/2019 - 13:05

    Probably mostly "Lazy tax".
    They creep up the premium each year and hope that you don't notice.

    Do an online quote through an incognito browser session and see what they quote you as a new customer.

  • sd224 on 09/12/2019 - 13:55

    Try doing a quote with the same insurer from a incognito / private window - for me it came out $35 cheaper with free road side assist package thrown in. I am with AAMI and every year I don't take up quote that they automatically send which is always more than what you can get as a new customer from their site. Sure you will be losing loyalty points and other stuff but as some one else here said, it counts very little when compared to the immediate savings.

  • Bargain80 on 09/12/2019 - 15:37

    It's called loyalty tax.
    Always shop around every year / every renewal.

    • 203132 on 10/12/2019 - 08:41

      not really, my current provider still ends up being the cheapest for me.

      • Bargain80 on 10/12/2019 - 10:23

        there is always an exception.

  • CaptainHoltisDad on 09/12/2019 - 15:57
    +1

    Agree with the lazy/loyalty tax. I would also suggest you call up your insurer directly if possible and ask for a better price. Did this recently at renewal and the insurer was able to offer a lower price than a new quote from their website and saved us several hundred dollars.

  • hashtagbargain on 09/12/2019 - 16:30

    Its true, companies claim every area has increased in risk compared to the previous year. MAke me wonder - Has the risk profile of a suburb ever gone down, resulting in a reduced premium?

  • Cheeper on 09/12/2019 - 16:40

    Get a quote elsewhere or call your current insurer and beg for a reduction.. even cry a little if you can LOL.

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