Insurance Comparison, RACV Vs Others

BendBridge on 07/07/2020 - 20:21

I have been with RACV insurance for over 30 years. This is the first time I used an online comparison tool to find out what are available out there. For the same comprehensive coverage, I found two insurance providers to be cheaper. But I have never heard of those two companies.

1) Carpeesh - premium is $200 cheaper, but excess per claim costs $100 more

2) Eric - premium is $70 cheaper, but excess per claim costs $300 more

Are Carpeesh and Eric good to deal with in a claim? Is it worthwhile to make the switch?

Is there a good and cheaper insurance provider you would recommend?

Thanks!

/WhyTea

Automotive

Comments

  • chumpychops on 07/07/2020 - 20:39
    +1

    DO your own research. Start with big reputable companies IMO, (AAmi, Allianz, GIO, NRMA etc etc)
    Those comparison sites are in it for themselves so are you really getting what's best for you?
    Odds are some of these smaller ones are just marketing names using a bigger under writer?

    And, something you can't test until it happens - how are these small companies going to handle a claim with their one person in the call centre? RACV are likely always more expensive but have a reasonable track record with claims.

  • blutek on 07/07/2020 - 20:45
    +1

    Do the cheaper premiums include repairer of your choice , and windscreen cover?

    • kerfuffle on 07/07/2020 - 21:13

      And hire car option

  • MS Paint on 07/07/2020 - 20:53
    +5

    Carpeesh requires an OBD tracker

    The app also samples driving data obtained using a paired sensor in your car and delivers feedback on recent trips.

    No thanks

  • [Deactivated] on 07/07/2020 - 21:17
    -1

    Shitbox go with Bingle, if not try aami

    • vinni9284 on 08/07/2020 - 08:56

      Suncorp = AAMI = GIO = Bingle = Shannons

      • [Deactivated] on 08/07/2020 - 10:52

        So suncorp will give me a better rate than aami?

        • vinni9284 on 08/07/2020 - 13:36

          The best rate will be Bingle IMO but try them all. You'll notice that the online quote for all has same page,drop-down lists etc but different theme/colours

  • dizzle on 07/07/2020 - 21:19
    -2

    A recent post shows why you may not want to go cheap:
    https://www.ozbargain.com.au/node/547923

    They told the poster that if he made a claim it would cost more, so he should talk to at fault driver himself - They wanted to get paid AND not do the work.

    • WoodYouLikeSomeCash on 07/07/2020 - 21:48

      Online is fine, in this case the OP hadn’t contacted his/her insurance company thus they were left in that situation. How can the insurance company act if they don’t even know about it?

  • bdl on 08/07/2020 - 01:20
    +1

    If you've been with RACV for 30 years, you can also give them a call and ask them to reduce premiums a little

    • bohn on 08/07/2020 - 08:47

      Our Years of Membership Benefits discounts
      Bronze. 5-9 years.
      Silver. 10-24 years.
      Gold. 25-50 years.
      Gold 50. 50+ years.

      How much more of a discount do they give on top of that?

      • bdl on 08/07/2020 - 21:58

        You can say you have other quotes and thinking of leaving and they find a bit more fat to cut

  • Euphemistic on 08/07/2020 - 07:47

    Do you value ease of claim over saving a few dollars? Some of the cheaper insurers make you do some of the work for a claim. The better ones make it all easy.

  • Hithere on 08/07/2020 - 08:05

    Get an online quote from the major insurance companies and then contact RACV who will match or beat it OP.

    I did that recently with AAMI and they matched the cheapest of the big insurers quotes which reduced my annual premium substantially.

    It takes a bit of time but the savings are worth it.

    • BendBridge on 09/07/2020 - 11:37

      Called up RACV and tried to get them to match AAMI. They reduced a bit but not willing to match.

      This was the original:
      - Premium $756.73 with access of $700

      AAMI quote:
      - Premium $606.53 with access of $740
      - Plus one year free roadside assist
      - Plus $50 bonus if buy it online

      RACV offer after phone call:
      - Premium $711.33 with access of $700

      • Hithere on 09/07/2020 - 12:58

        I'd be considering the move to AAMI, who are underwritten by Suncorp, for the decent savings plus added benefits.

  • vinni9284 on 08/07/2020 - 09:03

    Please note the following catches that may affect your premium online. Ensure it is apples for apples (assuming you have a good claim history)

    1 - Value of your car (is it the same/more/less than RACV?)
    2 - Excess. Higher = Less premium
    3 - Hire car option/Windscreen. Do you have this? (usually AAMI charges $170 PA on top of your premium for unlimited until your car is ready)
    4 - Level of cover/customer service. E.g. I have contacted Ryno insurance for a quote a week ago. I am still waiting for a reply. Imagine claiming? God help me!

    Cheers

    • eyesky on 08/07/2020 - 09:55

      Ryno appears to be an example where you need to check who is the underwriter. There are thousands of insurance brokers in Australia that used to work via relationships with their customers offline. Now most people go online for their Home/Car insurance, so these small brokers have set-up a website to try and capture customers and compete - but still operate via their manual backed processes.

      Any of the big brands or their smaller sub-brands have online quote and buy systems and phone based support with call centres in Australia. If they don't - like Ryno here, then I wouldn't waste my time. Not saying the product they will source for you won't be any good - just that its an old school way of business that is unlikely to satisfy OzBargainer types.

  • eyesky on 08/07/2020 - 09:40
    +4

    I believe I can offer some perspective here (full disclosure, I work for a small insurance brand).

    The main insurers in Australia are Allianz, Suncorp, QBE, IAG, and Auto& General - then you start going down to smaller niche insurers - I consider Youi and Hollard in that category (even though they aren't small on an international level).

    Most of the main insurers operate under a number of different brands - some of them owned by the insurer them selves and some of them owned independently (like ours). The underwriting and customer service including claims management is almost always performed by the same underlying insurers across all of their brands. The difference between brands is the marketing - and that includes product and pricing differentiation. The main brands rely on their brand name and good will to drive customers, the smaller brands usually have to offer something else to attract customers - either cheaper price or better product terms or both. For this reason I would not rule out smaller brands - same customer service, potentially better deal.

    Some (Bingle is an example) are quite different, in that they are online only. That saves cost, but in the event of a claim - you can't call them which could be an issue for some. Some brands like Coles/Woolworths just use their huge database to attract customers - but the insurer does all of the customer service, claims etc (identical to their house brands), just paying Coles a commission. The product can be differentiated too though - e.g. what is included, what the excess is and so on.

    Its easy to see who the underlying insurer is to give you peace of mind - it has to be disclosed to you (usually at the bottom of the page or advert). Once you are comfortable with the insurer - then its just about finding the deal that fits you best (price/product).

    With price - no one insurer will be cheaper or more expensive than another all the time - this is because underwriters are constantly adjusting their pricing to spread risk (geographically, or by risk type etc (just like a book maker at a race track). So when you hear people say this company is the cheapest, don't always believe it - there is no short cut for doing your own research on your insurance - because pricing is always changing (this included each year on renewal).

    Comparison sites basically don't have access to all insurers - particularly the big ones (as they actively resist being compared), so what you are shown is not a true reflection of the market - they carry disclaimers like "compare participating insurers", and might only compare the various brands of one single insurer, and even then on price alone.

    Some of the comments here seem to mis-understand how the industry works - instead citing isolated cases without understanding all the facts.

  • eyesky on 08/07/2020 - 10:00

    Also watch out for the brands that require tracking devices. If there is anything in your driving history that can be shown to contribute to accident damage - that can be grounds for denying a claim. This is a reasonable position for the insurer to justify - e.g. if you are speeding before you have an accident, I'm just pointing out that those grounds wouldn't necessarily be available to other insurers.

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