I have been with AAMI for about the past 10 years. They were just about the only company that would insure me for driving an SV6 commodore for a reasonable price. I was shocked this morning when I tried to get a quote from them to renew my insurance and it has basically doubled in price. My circumstances have not changed. I have the same car, I have not been in a crash, I have not made a claim. Just wondering who everyone uses for car insurance and if others have noticed this price hike as well from AAMI or other insurers.
Car Insurance - Who's the best?
Mr Haj on 14/05/2021 - 09:19
Last edited 14/05/2021 - 09:22
Last edited 14/05/2021 - 09:22
Comments
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But I've had the same car for three years
I think OP trying to say, he always loyalty to AAMI and always with them for 10 years, perhaps different cars?
I had a VE commodore with AAMI for the first seven years and the past three years I've had a VF commodore. The VF obviously had a higher agreed value than the VE but the insurance premium was still reasonable until now.
@Mr Haj: Yeah look, it's not really about you.
If there's alot of other VE/VF commodore drivers hooning and crashing, then obviously it will have an effect on your premium in general.
I had the same issue with Suncorp a few years ago. Insurance renewal premium spiked. Asked and was basically told that my model was now considered riskier (likely they had seen an increase in claims from that model in the prior 12 months).
Most (all?) insurance is calculation of risk. When my car was new, they had no claims from that model. As time goes on, they get claims on that model. Their calculations see that model as an increased risk, thus your premium goes up.
Cheapest and best are not always synonyms in insurance.
Are you on agreed or market value cover? I saw on Channel 7 news about how insurer's market value has been out of touch, off by half compare with second hand cars. Maybe AAMI did that?
AAMI have always provided an agreed value range. It doesn't look any different from last year.
I think you misunderstand. The problem is used car values have significantly increased, if their agreed value is similar or less than it is probably bad.
Nor does the expensive mean you are covered. Good to read the PDS and determine what you really want to be covered is covered. Keep in mind that they will try their best to use legal loopholes while claiming so their PDS is very clear on the cover you need.
Every year mine comes in I get quotes from a fair few places. It's so easy to switch now online and unfortunately loyalty does not seem to get you anything.
Another way to say this is, your next insurer should be the best ….
I have been with AAMI for about the past 10 years
Same insurance company for 10 years, ouch.
They've always provided me with good quotes until this year!
"Better shop around" is a good quote.
Every insurer has raised prices, though not doubled. They've had a lot of payouts (fires and floods) and car prices have risen since covid and they need to recoup that and cover the increases so everyone gets a small increase regardless of circumstance.
Insurance industry in general is battered after COVID. It was already doing pretty bad because the clients' assets covered by them are liabilities in their books, hence asset price inflation may essentially mean that their liabilities were already increasing. Life insurance in general has been worst hit amongst insurance products.
I had a reduction this year…
Exactly.
Insurance is going up across the board and won't stop for some time.
The natural catastrophes, extremely poor returns on investments, etc. have seen to that.
Also, cheap insurers are not always good.
Read the PDS before you buy.
Bingle and Poncho both tend to be cheap.
I have never had problems with either of them but YMMV (both literally and figuratively in this instance).
second for Poncho, great that they are truly month to month, however don't know how they handle claims, and hopefully won't need to know! but I guess since they are backed by https://www.iag.com.au/ it should be at least OK
Until you have to claim. And then you get told that your prescription sunglasses should be covered by your health insurance.
I stay away from anything iag. Bunch of <profanity>.
Correct me if I am wrong, when I research Bingle 2 months ago they don't have a phone number, only the website. I decided not to go with them because of that and they are not the cheapest for my 2018 Honda Jazz either.
Not having a phone number is enough to avoid any compay.
Still can't forget the terrible experience that I had with Belong when I needed urgent support.If you make a claim they give you a phone number. Otherwise they do everything online.
That is a disadvantage.
Yep have been with Bingle on multiple cars. No issues on claim I had and prices have stayed very low on renewal.
We've been with Bingle for a few years, and have made one or two (not at fault) claims. They were fantastic to deal with! Don't let the lack of phone number scare you - they do provide contact details if/when you need to make a claim.
unwritters of Tokio Marine & Nichido Fire Insurance Co., Ltd seem to be the cheapest from my expierence
They don't seem to sell to the public
With AAMI, what really makes me angry is this. Same car and insurer details (mine) and parking conditions but with a slight change in address (from my home to the unit next to mine, in the same street address) lowers the quote by $500. I can't understand how they justify this.
I had this years ago with NRMA. My renewal was ~$750, but I remembered someone saying insurance companies will match addresses given during quoting, so I tried the house next door, and it dropped to $490. I lived in a block of units at the time, so tried the unit next door, and it dropped to $460.
Got onto chat and they matched it. Was both annoyed and chuffed at the same time!
I called AAMI and told them. The lady wouldn’t budge, absolutely disinterested in retaining business.
There's no helping some companies.
They spend millions on advertising to get new customers, but are happy to let current customers go.
And the insurance industry wonder why they are hated so much. Perhaps they don't wonder any more …
For a second there I thought i was reading something id posted. When i rang to question i got some crap about risk profile. When i mentioned the carport spots are next to each other she basically admitted it made no sense. I asked if the risk profile was lower because that address isn’t an aami customer she laughed.
I was in the same situation with Suncorp. They increased the premium by 30% when I did not make any vechicle claims in my address. Neighbours address came cheap. So I asked. The answer was they take everything, not only vehicle related claims in to the account. Only explanasion I could think was I had a home insurance related calim with a different insurer (not related to suncorp group) and somehow Suncorp got that data and recalcualted the risk profile. Ended up going with GIO which is backed by Suncorp and did not have the 30% increased price. I cannot explain that part.
Because they think that's a new customer. New customers always get the best price, it's a tactic to entice them away from the competition. You can test this easily by filling out the online application and comparing it to your renewal quote.
Fwiw - I've been with aami for several years, but every year I get a "new" quote and take out a "new" policy. Guaranteed to be 50-100 bucks cheaper every time.
Friend experience the same situation. He owns a house on a block that was sub-divided 40 years ago. His block is 750sqmt and numbered "123a", the adjoining property of the same size is numbered "123"
His price was (say) $800 yet for exactly same car details the price for next door was $550.
When he question AAMI he was told our pricing algorithm perceives an address such as his to be a unit, and automatically a higher risk.
Bloke I worked with had this issue too - different units at his address had different prices
Only good experiences with Shannons so far- for "motoring enthusiasts" apparently. Very understanding on Mods and V6+ engines
Both mine are insured with agreed value with Shannons…
Never had a problem renewal time or the agreed value - having said that also never had a claim with themHave had 2 claims in last 2 months- none at fault lol. Got given a rental even though my policy didn’t include it. I guess the other party is paying for it
Good to know.. having dealt with them years ago with bikes, I'd expect they'd give good treatment.
Same, have my WRX STI with them and daily. Discounts on multi vehicle and CTP
had over decade, only claimed a windshield
Not sure which model sti but my renewals on mine are woeful each year and this year I want to tell them to GGF.
Been with them for more then 10 years on same car and it's so wrong.Does anyone have any other specialist or high value insurers, with modifications required to be specified?
Cheers!
Edit: never had any insurance claims ever
Just got my renewal overnight as I was expecting and I'm totally telling them to GGF.
I would recommend Shannons to nobody!
If you see this, shop elsewhere.Dodgy bastards!
I will be adding to their poorly product reviews score sometime today or this week depends how quickly I can change the STI and now my house also.Current model STI with stage 1 protune and several options.
Guess depends on area and use. Wasn't much more as a daily but only have it as a Sunday car.
Shannon's been fine. Wanted comprehensive on my daily but too expensive (car only cost me 8k) so have 3rd party with Shannon's for it.
@Bid Sniper: Yep I see, I guess it depends on a lot of factors as you say and sometimes it can work out or other times your hand is forced to look elsewhere.
I have engaged Ryno insurance, will try Enthusiast too as well as Famous.
Shannons is definitely not getting my cents and dollars any more after about 11 or 12 years.
Nor would I recommend them to anyone after this experience, same story last few years.My model is missing a couple of doors and seems to be rocketing in price for whatever reason last few years. Quite annoying for insurance reasons…
Forgot to mention I am on the lowest driving tier they offer. Like once a month or something like that, but that is not the problem with Shannons. Problem is wherever they are pulling the "agreed" values from
@bobs burgers: Have $50k cash will take your car off your hands and you can buy a new one like mine. Been looking for a 2door for awhile.
Your insurance will be cheaper 🙂
@Bid Sniper: Haha thanks but no sales, ever :p
This one will either end up in the bottom of the ocean with me when I'm gone or in a museum or something.
Great car to look at and drive tho.
Can recommend 10/10 for the feels and excitement it delivers.
It's been 12 years and it still can't wipe the smile off my face when I'm near it@bobs burgers: 60k then + kebab with garlic sauce
My engine builder ownes one says same thing. I was offered one for 35K a decade ago ,passed on it and regretted it ever since. I'm happy with my current STI but wanted a GC8 project car.
Well answers the questions why your premiums going up, it's tracking market value.
Ps I'm serious, if you want to offload that car have 60k cash here
@Bid Sniper: While the kebab is quite enticing, I will still pass hehe
I had a 97 WRX when I went to test drive the coupe privately, thinking there was no way I was getting it. Almost double the money from a similar age WRX at the time was not something I could afford.Anyways I told the seller I wasn't leaving without it 2 mins into the test drive. Can't remember if we haggled on the price, but it was quite significantly lower then even your offer and I haven't ever looked back, ever…
Since mine isn't getting sold ever it is also a project car, nothing getting cut, but there isn't much original stuff underneath the body. 2005 to 2008 sti platform and soon enough to be a 2.0 built engine based on block and heads from the 2008 onwards dual avcs JDM sti model with a bit bigger snail in a less then factory location. Can't wait!
If you ever get a chance to own one in the future and are a sti coupe tragic, you can't go wrong :)
@bobs burgers: Nah given up owning oz delivered V5, thinking 25 year rule type R import will be more affordable but those are going up too.
Yeah that’s GC8 ownership, buy a GC8 then a crashed GD then put all GD parts into GC8. If you can get a S203 engine that would be amazing, balanced crank, 8K redline. Going twist mount?
I wouldn’t mine a GC8 project but I’m happy with my 17 STI. As much as I love a V5, I think its bananas that a V5 is worth 3X what I paid for my new STI.
@Bid Sniper: The 25 year thing will be interesting. I haven't read up fully into it but it's still some restrictions if it was sold here or not?
I know US has 25 year rule so they are buying all the JDM which is pushing up prices I suspect on a lot of cars. Which is sad a bit if want to buy one.
I'm actually building from case halves. Have the nitrated crank too, new JE pistons ready to go everything here in parts and everything will be balanced and clearanced to make it sing, past 8000 but the EFR7163 twin scroll won't make power that high, can be changed if necessary but it's not an outright power build.
Hence the turbo size and its location under the car in front. Currently there is no stock position radiator fitment possible… But radiator(s) will be added later, turbo first. Bloody challenge in this location on a gc body without hacking anything….yikesAlso yep it's crazy prices on v5, im not super happy about it because of insurance issues as per this thread. I got a friend with a similar vintage STI also happy and he will lightly mod it he reckons. Exhaust and tune. It's a good car.
Just different beast compared to gc8 or gm8 if you like.Enjoy it!
@bobs burgers: Not sure rules were revised a few years ago. I need to revisit them too. Not high on my priority. Id rather get a cheap GC8 so can restore for fun, one man “WRX preservation society”
What are your power aims with that unit? I had a VF34 on my EJ205 and was happy with it. That said my stage1 tune on my EJ257 makes same power but twice the torque with stock turbo, no replacement for displacement. Want a torque monster, go 2.5L with a twin scroll, think that be a hoot.
Yeah both different but wow the price different with 2 extra doors is crazy. Just before covid almost got a V6 STi (4 door) for $3K with front end damage. If it was a V5, 20X
@Bid Sniper: I'm not aiming for a particular number but anyways should be roughly 330KW probably. I'm sure will be good to see anything past 300 tho with my want of low and mid torque improvements.
I considered the 2.5 bit only for a split second. I want the brutal delivery of the 2.0 and it's happy revs out of the box. It's what delivers the rush.
Hehe yep, also as you know you can pick up a cheap any 4 door shell if going to be replacing everything. Makes it cheaper to just get into the project.
Btw around the time I was buying my one, on trademe over in NZ coupes were 10k starting, which was insane to me, but you could only being them back in 1/2's or whole with a cams license never to be registered
Went from AAMI (who hiked the price for third-party from $700/yr to $860/yr) and moved to Shannon's ($300/yr third party). Even though they're both owned by Scumcorp, the difference is quite large. And the Shannon's sales dude loved chatting about cars and knew his stuff
It's also worth getting an online quote from AAMI for the same vehicle and keep all other details the same.
I've found sometimes the new quote will come back cheaper.
I did this once with Woolworths insurance and when I called to ask if they could just give me the cheaper premium they couldn't and just said to sign up to the new policy!Yeah this was a quote. The quote always seems to be cheaper than the policy renewal haha
AAMI gives you a $50 discount for buying a car policy online (or $15 for motorcycles).They don’t give this discount for an online renewal, so all things being the same, the renewals are $50 more than initial policy. If you can be bothered, cancel and take the policy out again, and get the $50 off. I have done this before, no problem.
https://www.aami.com.au/aami-informed/on-the-road/insuring-a…I am with AAMI, a new online quote is always cheaper than your renewal. Interestingly when I call them they always seem to give a better price than even a new online quote. Worth giving them a call. They even gave me a $50 e-gift card by renewing via phone once.
Also have had 2 not at fault claims with AAMI and was happy with their service
I go though the same thing every year for home contents insurance with virgin money. Their renewal is usually around $360, and it's an automatic renewal unless you cancel it. If I phone and ask for a better renewal price they'll drop it around $330. But a fresh online quote is around $280, plus they give bonus Velocity points on a new policy (this year it was 10,000 points in 2 batches of 5,000 points, and with a conservative valuation of 1 cent per point, that's $100). So every year I shop around (for every insurance I buy when it's up for renewal), but for the past few years for contents insurance the best approach has been to call and cancel the old virgin policy, take out a new policy online with promo points, and after subtracting the value of the points I save $100 to $180 per year (depending on how many promo points they're offering) for exactly the same thing by doing this.
Ps: for comprehensive car insurance I was with woolworths for a few years, currently with Eric as they were the best value last renewal time, but I haven't had any claims with them, their reviews seemed reasonable, but it's really hard to know for sure if an insurer is any good until you've completed a claim with them.
Budget direct, op for agreed value and choice of own repairer.
We too have Budget Direct but be prepared for the inevitable price hike at renewal time. I have to go create a new quote on their website and then phone them to get the reduced price. Every year the renewal can come in from $50-$200 dearer but they have yet to knock me back when I show them the new quote.
It's a shame they don't reward existing policy holders and are more concerned with chasing new clients. But if you work the system, the outcome can be to your benefit. They are fully aware that some people couldn't be bothered trying to lower their renewal price and so will increase the price every year to take advantage.
Nice tip! I'll have to look. I've been with them for ages now. I tried one year doing a quote but it came out way more expensive. But it never hurts to look again since COVID stuff.
John West.
Sounds fishy
Goes through the worst, to give you the best.
I had bad experience with AAMI. No loyalty counts. Once I had an accident at my fault. I was astonished when I was told that I had to pay the standard excess $650.00plus the so-called premium excess of $1,200.00.Wheras with other insurance companies such as Coles one has to pay the premium excess only. That happened many years ago and that both excesses had to pay was not made clear to customers, and I think they got too many complaints over this issue, then now they make it transparent.I left AAMI since then.
Try Bingle
They're all the same mate. Take it from someone who's worked in insurance - the government basically manages every insurance company operating in Australia. It's not a free market. An insurer cannot simply choose who they do or don't cover at what price. Most of this is controlled behind the scenes by tight regulation.
Eg if an insurance product has a low purchase rate, the government will step in and force the insurer to increase the product offering or discontinue it all together. Insurers have very little control over their own products or services.
Just do a comparison quote and go for the cheapest.
Government bodies don't dictate every single product. They want to make sure the insurance business doesn't go bankrupt causing disturbance in the business world.
They also want to make sure that junk insurance policies aren't sold
"Junk" is a subjective opinion. There are many policies which may have a low purchase rate but still serve a purpose to a particular niche, yet apparently the government isn't happy with the concept of of insurance company having a pre-defined target market. Insurance policies need to be for everybody or nobody.
It's basically like forcing Woolwroths to discontinue gluten-free bread just because it's marked up and very few people buy it. A private business should have the right to decide what they do or don't sell, just like customers have the right to decide what they do or don't buy. Do you really want to live in a world where the government makes decisions for you?
yet apparently the government isn't happy with the concept of of insurance company having a pre-defined target market
Probably because insurance companies won't advertise to that target market, they will advertise to everyone.
Shold an insurance company be allowed to use car insurance that only covers you for accidents on a Tuesday and only if you are in an accident with a red car? Sure if they want to.
But when they advertise to everybody that they their insurance is very cheap and hide those conditions in a PDS which nobody reads even if they should, then there needs to be something in place to ensure that people don't unwillingly buy the product to find it offers them no protection after an event they thought would be insured.
@spaceflight: Every PDS needs to clearly list the product details, what it covers, exclusions etc. They're advertising to everyone and letting individuals make their own informed decisions.
This is no different to what literally every other business does. Plenty of ads for Woolworths or Coles promote certain products that only have use for a small target market, yet the ad is aired on national TV everywhere.
Every PDS needs to clearly list the product details, what it covers, exclusions etc.
Correct, but as I said nobody reads them even though they should.
They're advertising to everyone and letting individuals make their own informed decisions.
The they are advertising to everyone, and they are advertising 'car insurance' which everybody looks at to be a blanket and uniform policy regardless of who they are with.
Advertising 'car insurance*' that only covers you for accidents on a Tuesday and only if you are in an accident with a red car would cause people to buy the cheaper product not fully understanding what it is.
Plenty of ads for Woolworths or Coles promote certain products that only have use for a small target market, yet the ad is aired on national TV everywhere.
Which is completely different because the product is not a contract, doesn't have a PDS and you don't pay for that product every month not knowing that it doesn't cover you for what you thought it was covering you for.
Correct, but as I said nobody reads them
So the government has to step in and punish businesses because of the stupidity and laziness of the market?
Don't you see something wrong with that?
The they are advertising to everyone, and they are advertising 'car insurance' which everybody looks at to be a blanket and uniform policy regardless of who they are with.
Again, that's on the market. The PDS clearly states what the product does and doesn't cover, just like every food item you buy clearly lists the ingredients. If people are too stupid to understand how to make informed decisions by reading about what they're buying, then I'm all for the government investing in some education and common sense campaigns. It doesn't make sense to push the burden of the solution onto the business.
Advertising 'car insurance*' that only covers you for accidents on a Tuesday and only if you are in an accident with a red car would cause people to buy the cheaper product not fully understanding what it is.
Yes, just like cleaning products which claim to kill 99.9% of germs can't be used to cure an infection on your toe. It's common sense.
Which is completely different because the product is not a contract
Everything you buy is a contract. But if you're talking specifically about written contracts, you can look at the car or home industry. They are full of dodgy practices with businesses making all sorts of false or misleading claims which lead people to believe a product is right for them, only to find that their new home is starting to sink or those factory extras like seat warmers and rear-view cameras are actually useless gimmicks.
Does the government step in? No.
There are also plenty of cars on the market that wouldn't be missed if they were discontinued, but the government is happy to let the free market decide on its own. Too bad they've figured out that targeting the financial services industry is a cheap and easy way to pretend they're working hard and protecting people when in reality they're just short on work and need something to do in order to justify their stupid salaries.
So the government has to step in and punish businesses because of the stupidity and laziness of the market?
No they are preventing companies using marketing tactics to entice consumers to sign up to a product that has no benifits to them.
If insurance companies could offer anything they wanted, they would. Even if the product had no value to most consumers they would still advertise it as a competitive product.
Don't you see something wrong with that?
No, not how I see it.
Shold the market be able to sell something that looks like it will provide a benifit even when they know is useless and will never provide a benefit purely to make more money?
Again, that's on the market. The PDS clearly states what the product does and doesn't cover
Everybody knows that nobody reads then, nor can the full extent of a PDS be conveyed as part of an advertisement.
just like every food item you buy clearly lists the ingredients.
Because a food item is a simple food item that is a one time purchase with no ongoing contracts or payments attached.
If I buy Vegemite and put it in my cupboard in 6 months time it is still Vegemite.
If I buy a junk insurance policy and make a claim in 6 months it will be refused and I will have lost my premiums.If people are too stupid to understand how to make informed decisions by reading about what they're buying, then I'm all for the government investing in some education and common sense campaigns.
There's a difference between being too stupid to understand something and understanding a complex insurance document.
Is the same reason that people cannot freely trade Options on the stock exchange or enter into other complex financial positions.Yes, just like cleaning products which claim to kill 99.9% of germs can't be used to cure an infection on your toe. It's common sense.
Because common sense (and the bottle) tell you it's a cleaning product and not a medical one.
That's different to 'car insurance*' that only covers you for accidents on a Tuesday and only if you are in an accident with a red car.Everything you buy is a contract.
No is not, the jar of Vegemite I got tonight isn't a contract for Vegemite
those factory extras like seat warmers and rear-view cameras are actually useless gimmicks.
I use my heated seats every day in winter and vehicles fitted with a reversing camera are 41% less likely to be involved in a back over crash (where a pedestrian or cyclist is struck by a reversing vehicle).
https://rctlaw.com.au/legal-blog/2018/reversing-cameras-sens…Just because you think something is useless doesn't mean it is.
Does the government step in? No.
To take safety devices off cars?
There are also plenty of cars on the market that wouldn't be missed if they were discontinued, but the government is happy to let the free market decide on its own.
These cars you are taking about are a product and a personal choice, not a complex contractual agreement.
Too bad they've figured out that targeting the financial services industry is a cheap and easy way to pretend they're working hard and protecting people when in reality they're just short on work and need something to do in order to justify their stupid salaries.
Perhaps because they are protecting people.
Perhaps because they don't want people to be mislead into buying junk insurance
https://www.medianet.com.au/releases/193867/
Sounds like someone is trying to spin yet another conspiracy theory
My experience is different insurance companies are competitive at different risk levels, hence why when someone claims to get a good deal from a particular company, you find their offer to you is crap. It also means that if your risk profile changes, such as changing your vehicle, you might need to change insurers.
I sign up for a new policy each year with Suncorp as you get $50 off by dealing online, a new policy seems to be always cheaper than the renewal they offer you on your existing policy.
Can we use the same email for that?
Whilst the insurance market is regulated, there is a big difference in claims service from one insurer to another.
You might buy based on price, but bear in mind that the only real thing that differentiates a good insurance company from a bad one is their claims service. How they look after you when you need them is what differentiates cheap vs good value.
Just ring Coles… just get third party fire and theft.
They actually cover a small portion of your vehicle as well…. a little known fact.They actually cover a small portion of your vehicle as well
That's usually if you are in an accident with an uninsured motorist, several insurance companies offer it.
Holden no longer existing (and therefore the increased difficulty in getting parts) might have something do with the increase in premiums.
The difficulty in getting parts means it's more expensive and, in turn, means more risk of a total write-off.You're right - insurance is a scam… until you need to make a claim!
And then you might break even on the tens of thousands you've given away to billionaires, its always a gamble, but insuring everything means you are guaranteed to lose
What if you hit a brand new car or lux car before you've saved up tens of thousands or however much the new car is going to cost?
Make sure when you write off an exotic, you post on the forums for help once you realise you're on the hook for $430k and you're uninsured.
It's a simple equation, you will waste a lot more money on insurance than you will ever claim by a very wide margin. The average Australian will pay $30k-50k on insurance over 10 years, thats a lot of money that will easily cover accidents and the odd dead pixel in new TV's. The odds are in your favour, and you bet against yourself? The chance of hitting a lambo is exceedingly rare, and all that'll mean is another 20 years on your mortgage, not the end of the world.
Insurance is risk management. nothing more. You're paying to take certain risk off your balance sheet and put it onto the insurers.
You may have noticed the amount of natural catastrophes we have, or how people now driver newer, more expensive cars.
You don't have to hit a Lambo (which happens a lot more than you think), you just have to tap a KIA to see how quickly that repair goes to $30K.
Then there's insuring your home. A good friends home was under water entirely in the March storms.
Your equation is massively flawed and a single claim can easily wipe out your perceived savings (and that's if it's 1 in 10 years!!).
I don't think you understand how insurance works. You're focused on a dead pixel in your TV but not losing your home.
Most people don't claim small things but all you need to do is read these forums for the amount of people who have motor accidents and are uninsured.
@imurgod: I live in a high fire risk area, just recently, 20 or so homes got wiped out just a few km from where I live, but that's 20/5000 that get destroyed very few years, not worth 1.2 k insurance per year for that. So 20k over 20 years for a 0.004%(around there) chance of losing your house. A simple heat induced sprinkler system would be a better investment if that's a real concern. Its piece of mind for financial security, but of all the catastrophic events that you could face, financial loss is the least distressing thing that could happen imo.
@lew380: Ah OK. Maybe that's just you then.
I think I might stress just a little if my home burned to the ground and I was uninsured.
But then I'd be pretty upset if I hit a car uninsured and had to pay $15k for repairs.
I work hard for what I have, so I protect it.
@imurgod: Insurance for something you can afford to replace (e.g. your own car, if you have 30k in savings) is a waste of money in the long run. That's how insurance companies make profit.
However, insuring things that you cannot afford to replace, that would ruin you should you be on the hook for them (e.g. mortgaged house, someone else's $400k exotic, etc.) or your livelihood if you cannot afford to replace them (work car, tools, etc) are definitely worth insuring depending on your risk tolerance.
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Yes, when your car is now seen as high risk to them… (it would seem stupid/slow when other insurers already jacked up in advance).
They don't want to refuse your insurance, but doubling price is a way for them to "get rid of you"…