Why Home Insurance Renewal Is More Expensive than Buying New

• 

  cook99 on 09/12/2020 - 15:28

  +8

  Every insurer, bank, internet provider etc act this way. There is no benefit to loyalty you are far better to switch between companies. They rely on your laziness to make more money from loyal customers sadly.

  Try AAMI, I found they beat the pants off Allianz for Home and Contents.

• 

  PissLUR on 09/12/2020 - 15:36

  +3

  I've been with coles home & content insurance for more than 10 years now.

  Their renewal quotes are always better off from any of the new quotes. spent hours every year to find a better quotes (as renewal increases) and I cant find any cheaper quote.

  • 

    R4 on 09/12/2020 - 16:50

    +1

    Same with RAC - usually always cheaper than starting from new.

• 

  wizzy on 09/12/2020 - 15:39

  +1

  I shop around for insurance every time I get a renewal notice (car, house etc). Sometimes the existing company is still the cheapest, but often it's a different company and I switch. Sometimes the premium is even cheaper than the previous year by switching. You have to make sure you are getting the same level of cover though.

  I have never found any benefit by staying with the same company out of loyalty. I doubt that they feel any loyalty to me either.

  Coles and Youi have been the two cheapest home and contents insurers for me for the past couple of years.

  • 

    dealmeister on 09/12/2020 - 15:48

    I just try to keep my car insurance on the same insurer. Because after 2 years my current one gives me star rating protection which keeps my premium down even if I claim at fault.

    But yes, agree with you for the rest.

    • 

      bobbified on 09/12/2020 - 15:51

      …keeps my premium down even if I claim at fault.

      Have you had a claim yet?

      • 

        dealmeister on 09/12/2020 - 16:13

        For the first two years no. But this year I had a small dent due to a fallen branch.
        Even though it's very little, the panel beater told me the panel has to be removed from the body, painted outside, and assembled back. And talking about a few thousands.

        So looks like the premium I paid so far will pay off itself. And the premium will not increase.

        • 

          bobbified on 09/12/2020 - 16:26

          +3

          @dealmeister:

          And the premium will not increase.

          They used to always advertise No Claim Bonus protection, etc, but when a claim at at-fault claim was lodged, your premium would still go up the following year. Yes, your NCB discount was "protected" and you'll still get 60% or whatever, but the base (pre-discount) price isn't. That usually gets jacked up and it'll be much higher than that of the previous year because your risk profile has changed after your claim.

          Often, if you ask them, they'll tell you it's because there's a general increase in claims this year, blah blah blah.

          If you go anywhere else, you will have to answer "yes" to the question asking if you've had any claims, so your premium will go up with that answer as well.

    • 

      wizzy on 09/12/2020 - 15:51

      +1

      I don't claim much, but if that works for you then that's great.

      I do recommend that you check out Bingle and Poncho for comprehensive car insurance though. You might find that they are still cheaper than your current insurer even when you take your star rating into consideration.

      • 

        dealmeister on 09/12/2020 - 16:08

        Thanks for the tip. Actually the reason I keep with Allianz for the car is a bit of a piece of mind and about being able to pick the repairer.

        • 

          wizzy on 09/12/2020 - 16:12

          +1

          @dealmeister: Fair enough. We all have our own priorities.

          Bingle and Poncho will choose the repairer for you. Bingle is part of the Suncorp group, so the repairer will be one affiliated with Suncorp. I'm not sure about Poncho.

• 

  orangetrain on 09/12/2020 - 15:45

  +1

  The loyalty is a bonus to them. Of course they won't give you anything because scupper you. Switch.

• 

  rowd22 on 09/12/2020 - 15:52

  I had the exact same happen with Allianz too.
  I just cancelled the old insurance over the phone and purchased a new insurance policy on their website.

  • 

    dealmeister on 09/12/2020 - 16:47

    +2

    Rather than cancelling I purchased the new one on top of the existing. Because when you get a new policy, you are not covered for fire, cyclone and flood for the first 72 hours. I know it's really rare. But who knows :)

• 

  geek001 on 09/12/2020 - 15:56

  And I asked what is the benefit of loyalty. The answer was loyalty "discount!" after 2 years :))

  That is quite dumb. Why not loyalty after one year?

  I do the same btw, get a new quote every year from Allianz. The other insurers all seem to be more expensive for home and contents. I can say that for sure because I always try to get at least 3 other quotes before I commit.

• 

  onetwothreefour on 09/12/2020 - 16:16

  Happens with me with Woolie insurance. The renewal notice is always far more expensive than booking through their website so I have to call every year and cancel the renewal and buy online again. I also do shop around but I find that Woolworths is usually cheapest for me.

  • 

    jv on 09/12/2020 - 16:28

    with Woolie insurance.

    Only good in the winter though…

    • 

      onetwothreefour on 09/12/2020 - 17:38

      Good one.

• 

  netjock on 09/12/2020 - 16:17

  The answer was loyalty "discount!" after 2 years

  No way that is happening.

  Loyalty discount the insurer is taking. It is more expensive for the convenience factor.

• 

  holdenmg on 09/12/2020 - 16:23

  +1

  Just check when switching or re-proposing cover that in the fine print the Terms and Conditions are the same and the Excesses (if any) are as well.
  Also, don't cancel or lapse the first Policy until cover is Accepted. :+)

• 

  AustriaBargain on 09/12/2020 - 18:19

  +2

  Do you put more bait on the hook when the fish has already bitten and you've already reeled it in? No you use the bait to catch other fish, you already got that one. Doesn't need more bait.

• 

  Seraphin7 on 09/12/2020 - 18:26

  Also, don't cancel or lapse the first Policy until cover is Accepted. :+)

  100%. Classic schoolgirl error.

• 

  MeesusEff on 10/12/2020 - 03:34

  I just buy the online price when the old one is due to expire and remove payment details in the old account for both my house and car insurances. Cbb dealing with phone people, one time I called Allianz because they have "best price over the phone" and once he was done, he quoted me way over the internet price. So I said it's much cheaper online and he got really pissy at me and said I wasted his time (like he didn't waste mine!).

• 

  lgacb08 on 11/12/2020 - 12:30

  If youre in vic then try racv, they've been great to me, premium stay pretty much the same across year. Allianz is no where cheap, at least 25% more expensive everytime I tried.