My home insurance with Allianz came up for renewal, and I noticed that the premium had jumped up by nearly 15%. I tried getting a new quote from Allianz online, with the same details, but added flood cover and slightly increased content value. The new online quote came out to be about 15% less than the renewal premium and more in line with previous year's premium. I called Allianz and enquired about the discrepancy. I was told that a new policy on line attracts a discount and hence a new policy is cheaper. So I let the old policy lapse and took out a new policy with the same Allianz, saving a fair bit. Not sure if they have realised this, but it is certainly worth for customers to check this out instead of automatically renewing the policy. Maybe it is the same with other insurers with similar promotional policies.
Home Insurance Renewal Vs New Policy with The Same Company
Comments
Thanks for sharing. Did the same as you but new quote for me worked out to be higher than my existing renewal offer.
All insurers offer a first time joining discount which disappears in the following renewal. Guess you can still purchase a new policy every year instead of renewing the current one.
I'm finding this for the last 2 years. My renewal is cheaper than a new policy with the same insurer. Coverage and excess look the same.
Yes, new policies have a new joiner discount. My weird experience was that recent renewal is cheaper than a new policy.
AAMI do the same.
I get the online price, which is always cheaper than renewing it.
I then phone them quoting their online price, and the team member beats it.
How does that work? I have no idea but it's worth a few minutes every year.
Hi,
Just make sure the New Proposal is approved (and the Terms and Conditions are the same) before you cancel.
Otherwise, go for it.
It's called the lazy tax. People who don't shop around each time insurance is up for renewal are crazy.
Agree… I thought everyone knew renewals were always dodgy…
I do this just about yearly.
I've even asked my insurance company to price match my existing policy, well, with themselves. They say they can't and say that me taking a new policy at discount is permitted.
In one case when I forgot to stop renewal, the let me sign up with the new policy which was discounted, and refunded to me the difference.
I do the same with RACV.
Get a new quote online. Note the quote reference number. Call them. Quote the reference and they always fix the price. Takes 15 minutes and I save money every year.
May very each year with what a renewal has been rated at against a new quote as per date and other risk factors/claims and other factors. All you can do is keep trying each year and hopefully be ahead, there's no guarantees in life. This may help others thoe so thanks for sharing.
I do this every year for gas, electricity, all insurances etc. It's the Ozbargain way to save money
This is well known "trick". The insurers often don't care about their existing customers and only give discounts to new customers.
Works the same with Woolworth home and car insurance plus you get 20,000 points ($100).