My Experience with Budget Direct Car Insurance

kanad on 04/05/2022 - 11:00
Last edited 04/05/2022 - 15:29 by 1 other user

I have been (profanity) by budget direct partly due to my own lax attention. I insured my new car in 2019 with BD. Their policy was good, they have a 2 year new car replacement guarantee. Then in 2020 I found cheaper premium and Qantas bonus point offer with Qantas car insurance and switched. I switched back again to BD in 2021. The policies are almost identical and underwritten by same company Auto & General Insurance. I chose a high $1000 excess to reduce my premium. The only thing I wanted to make sure was my Rating 1 protection. I am pretty sure I talked to the agent on the phone about it but can't remember exactly. I got the Insurance certificate, PDS in a email with the following text

Thanks for choosing Budget Direct. Now you can relax knowing that your car is insured.
What you need to do now
• provide proof of your No Claim Discount (or Rating) entitlement

I then emailed my old certificate and got the confirmation. What I should have noticed is the PDS wording more carefully.

I just made a claim and they are reducing my Rating from 1 to 3, grrr. Upon calling they explained that they have ceased NCD protection since Sep 2020. I don't get that because I discontinued and rejoined with BD (event though underwriter hasn't changed). That email was to confirm my Rating was 1 to get discount and not for protecting my discount. I feel the email wording was misleading but have now learned a hard lesson and also will never use BD in future.

As for the actual claim they provide 3 repairers, two very far away and one within 15 mins drive. But they are fully booked for the whole month. Lucky my damage is minor (grazed against a pole). I went to a local crash repairer and he said my panel needs replacing and it would be more than $1000 excess and advised me to claim through insurance.

Automotive

Related Stores

Budget Direct
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Comments

  • oscargamer on 04/05/2022 - 11:16
    +5

    Thanks for your story. Learning experience for you.

  • holdenmg on 04/05/2022 - 11:17
    +3

    Hi,

    As far as Budget Direct goes you were proposing new cover after coming over from Qantas.

    As such, you would be proposing BD cover you according to the Terms they have (not once had).

    That said, if you feel BD have been unclear or misled you through their wording and what you satisfying their requirements would/should have provided you, maybe you can contact:
    https://www.afca.org.au/make-a-complaint/insurance

  • bobbified on 04/05/2022 - 11:22

    Personally, I wouldn't go with Budget if they offered me a Rating 1!

    Assuming you were at-fault for this claim?

    You obviously went with Budget because their premium was cheaper compared to the others. If the premium is the main factor in determining who you insure with, then just do another comparison when it comes time to renew, regardless of which rating you are and go where it's cheaper (if cost is your priority). No point trying to be loyal to a particular company for this kind of thing.

  • Jason Genova on 04/05/2022 - 11:26
    +12

    sounds more like a you thing, rather than a budget direct thing

    • GG57 on 04/05/2022 - 11:45
      +3

      …due to my own lax attention…

      I read that in the first line and didn't need to read any more.

  • brendanm on 04/05/2022 - 12:05
    +2

    partly completely due to my own lax attention

    Fify

  • [Deactivated] on 04/05/2022 - 12:07
    +6

    So Budget Direct didn't screw you, you screwed yourself, and you admitted as much due to your own lax attention.
    They're "Budget" for a reason. Pure cost cutting. You get what you pay for. Don't like it, insure elsewhere for more cost and protect your NCB. Too late for that now.

    Live and learn.

    • kanad on 07/05/2022 - 12:37

      I never realised BD has removed the NCD protection as it used to have when I first took a policy with them and truth is I didn't read the PDS in detail as I thought being the same underwriter they would have the same features. The email wording didn't help as well as I thought I got the NCD protection as long as I can show I had it in my previous policy. Lesson learned.

  • MS Paint on 04/05/2022 - 12:19
    +5

    🎻

  • plmko on 04/05/2022 - 14:09

    NCD is a BS concept. Who cares about that stuff many insurers are beginning to move away from that system.

  • apu on 04/05/2022 - 14:21
    +1

    I'm so confused by your post. You were chasing a discount, switched insurers, then rejoined (probably because they were cheaper again). And you expected the insurance to be the same as when you were previously a customer???? The only correct statement is "my own lax attention".

    The policy doesn't need to be the same. That's why they provide you a current PDS with every policy renewal/issue. I suggest you check the date of issue of the PDS for your first BD policy vs. your second BD policy and see if they are the same. If not, then the PDS was updated whilst you were with Qantas.

    Every insurer does it, generally to exclude/reduce cover or benefits over the years. Many home insurers removed automatic flood cover from their PDS a few years ago.

    With regard to your second point about wait times - I had a claim with Coles a few months ago and the wait for my chosen local repairer (part of their network) was 6 weeks. Good smash repairers are busy, irrespective of who they repair for. Same for mechanics if you haven't noticed.

  • altomic on 04/05/2022 - 14:42
    +1

    title should be - "How I didn't read the PDS/contract when getting car insurance and it did not work out for me"

  • brad1-8tsi on 04/05/2022 - 14:58
    +2

    I don't understand the issue.

    You had a business arrangement with BD which ceased. You started another business arrangement with Qantas which also ceased. You started a new business arrangement under new T&Cs which were written in plain english and readily available to read.

    Budget Direct have done nothing wrong

  • Euphemistic on 05/05/2022 - 14:39

    Maybe a reason provider hopping isn’t so good.

  • Brodo Faggins on 08/05/2022 - 16:37

    You made a claim, your rating dropped.
    Regardless of whether you stayed or switched is irrelevant, the systems would all talk to each other in this case.
    Your post is like saying "consider my driving record only until 2020, turn a blind eye the last 2 years".

    If you hadn't made a claim, the NCD & ratings would usually carry through from provider to provider (depending on their T&Cs).

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