Trying to organise contents insurance:
Budget direct is $323/year ($60,000 contents)
RACQ is $769/year ($50,000 contents)
Would this be expected or is RACQ jacking up the price (or is budget just that bad)?
Home Insurance Quote, $450 Difference in Annual Bill?
richadam on 18/12/2023 - 12:39
Comments
The only real difference is that Budget doesn't include Flood Cover as standard, perhaps that's the difference here. Didn't think that would mean it's $450 different though?
Actually nevermind, I had ticked flood cover in the Budget quote.
RACQ increased their contents insurance from about $400 to $700+ in response to the Brisbane floods.
They don't let you untick flood cover either, even if you're in a highrise.
Easy decision not to renew with them and get quotes from other insurers.
Suggest OP tries Suncorp
I have found them very competitive on Home and contents insurance
nice
why not $69,420?
All my insurances jumped up significantly in the last 2 years since Covid. Costs of everything are going up and this is reflected the most in insurance since it has to cover replacement costs for everything.
Remember this when you demand that the government spend more money on things, this is ultimately what drives inflation.government spend more money on things
I am sure government is not buying up all the IKEA beds.
As for property I'd rather have cheap property with proper yields (like 8% annual rental returns) than double the value and get 4% returns. But then people don't understand balance sheet vs cash flow.
I am sure government is not buying up all the IKEA beds
Doesn't matter what they spend it on, them creating and borrowing money to spend on anything results in more money in the system which is what causes inflation. ie more dollars created means each dollar has less value, so you need more of them to buy the same things. This makes EVERYTHING cost more, even Ikea beds.
This is inflation explained in 10 secs or less.As for property I'd rather have cheap property with proper yields (like 8% annual rental returns) than double the value and get 4% returns. But then people don't understand balance sheet vs cash flow.
This is an interesting topic and I've studied it for years and still can't find a 'right' answer. I think it's a case of 'it depends'.
If you want consistently higher yields maybe take a look at commercial real estate.Doesn't matter what they spend it on, them creating and borrowing money to spend on anything results in more money in the system which is what causes inflation
That is a myth they would like to believe. The fact is Australia is a price taker not a maker. Even if the government printed $1tn and gave it to every Australian it won't move the global inflation that much. Most of the inflation problem is imported. You don't think the government keeps on predicting Iron Ore at US$65 a ton and it is $135 a ton is due to everyone in Australia doing landscaping do you?
If you look at this ABS data you should ask your mum for stock tips because she told you to eat your fruit and vegetables which inflation is basically zero the last year.
it won't move the global inflation
Never said it would…
More money created devalues the current money supply. This is economics 101.
The jumps in prices we are seeing now are a direct result of monetary policy during Covid. The Gov and RBA were handing it out like candy. Do you know what the Term Funding Facility is?
You don't think the government keeps on predicting Iron Ore at US$65 a ton and it is $135 a ton…
Failed predictions of future commodity prices has nothing to do with measures for inflation.
inflation is basically zero the last year.
From your link. "The monthly CPI indicator rose 4.9% in the 12 months to October"
@1st-Amendment: How come there was no inflation between 2008 and around 2020 despite huge QE/monetary expansion?
As a hint, have a look at the monetarists equation. MV = PQ. If M increases but Q also increases (2008 - 2020ish) then there is no inflation. If M increases and Q decreases (aka COVID supply chain issues) then….P increases. If you assume V doesnt change.
Fun fact - monetarist pop theory espoused by people who havent studied beyond internet catch phrases dont realise that they are assuming that V, P and Q are constant and unchanging.
It is only Eco 101 because during Eco 101 you learn the very basics. Then in subsequent eco 201 and 308 and so forth you learn why the basics are so limiting that they are incorrect. Good for learners; not valid for the real world.
How come there was no inflation between 2008 and around 2020
The last time Australia had zero inflation was 1962. Let me pick up your failed shot off the floor…
you learn why the basics are so limiting that they are incorrect.
Not incorrect, just not enough to describe more complex variables. The basics are still valid.
But thanks for you attempts trying to replicating the bar scene from Good Will Hunting, unfortunately for you real life doesn't work like the movies…@1st-Amendment: Ah, I get it, you are one of those super literal people. Ok, how come inflation was under 2% for most of the 2010s and under 1% in 2020 despite considerable monetary expansion?
To say ‘the basics are not enough to describe more complex variables’ is to say ‘the basics are incorrect in the real world’. It’s like saying ‘the basics of soccer are to kick the ball into the net’. Sure, but trying to play or even watch soccer with that level of knowledge will end up with you yanked off the field or very confused
Why do semi aware internet economists refuse to even acknowledge the supply side of things? Is it because this is often a failure of the private sector and so doesn’t feed into the narrative of bad government?
you are one of those super literal people
You mean I take words to what they mean? Yes, because words are important.
how come inflation was under 2% for most of the 2010s and under 1% in 2020 despite considerable monetary expansion?
Define 'considerable'? What other variables were at play? There's not enough information provided.
Why do semi aware internet economists refuse to even acknowledge the supply side of things?
Who specifically? Supply side economics has been a big thing since the 70's. Milton Friedman was famous for it.
Is it because this is often a failure of
What is? You going to have to descriptive if you want a descriptive answer.
the private sector and so doesn’t feed into the narrative of bad government?
Do you own a business? If you did you would know that government regulations are the biggest inhibitor to supply for any business, just look at the housing issues as a great example. What is stopping developers from building more properties?
So if we agree that supply-side is a major driver of economic problems, what do you think the government can do to alleviate that? Interfere more or get out of the way?
From your link. "The monthly CPI indicator rose 4.9% in the 12 months to October"
Ready what I said again. Don't skip over the detail.
Do you know what the Term Funding Facility is
Yeah thanks to that I got 2% fixed until 2025. But you don't need a TFF. The Bank of England helped me get 1.84% until 2027. The TFF has nothing to do with it. You still need credit worthy borrowers to lend money to. Just because the government gave you JobKeeper doesn't mean you got good enough credit to borrow large amounts of money. Anyone who borrowed 30 years thinking 2% interest rates were the norm got it horribly wrong.
I think you have an overly simplistic understanding of economics.
Failed predictions of future commodity prices has nothing to do with measures for inflation.
Iron ore goes into making steel that goes into your cars, white goods amongst other things pushing up inflation. It also means the government has more money to spend because they receive more mining taxes so they can conduct fiscal stimulus (child care subsidy, rent assistance, increasing JobSeeker, building social housing, infrastructure.)
Yeah I'm just amusing you to see how much you know. People over simplify to try to win an argument. Just like the one where Australia needs to maintain some kind of an interest rate gap within the USA to keep down inflation.
If you know any economics you would know Australia is just a price taker. Australia just living off the holes in the mining states.
Ready what I said again. Don't skip over the detail.
I did and it actually made no grammatical sense. Feel free to clarify what this word salad is actually supposed to mean:
"If you look at this ABS data you should ask your mum for stock tips because she told you to eat your fruit and vegetables which inflation is basically zero the last year."
Seriously? What does that even mean?
But you don't need a TFF.
Doesn't matter what you need, the point is that the TFF was merely one example of more money being dumped into the economy, which then drove inflation.
I think you…
Your opinion counts for zero unfortunately. Inflation has gone up considerably since Covid measures were implemented, this isn't just magic.
Iron ore goes into…
Cool story. You have confused the prices going up due to inflation, with the gov incorrectly guessing what the future price will be. Of course they get their guesses wrong, they are Muppets who get everything wrong. Yet despite being useless at almost everything, some people want to give Gov more say in their lives…
Your opinion counts for zero unfortunately
Fortunately this applies to you too.
What does that even mean?
It means you are talking rubbish. Because inflation is different to everyone else. People in Queensland are paying like 60c per kilowatt hour for electricity and up 100% but I'm actually paying zero for electricity this year because I switched to a lower rate with a high feed in. But lets all just pretend 4.9% is for everyone.
point is that the TFF was merely one example of more money being dumped into the economy
If you knew anything to start off with it wasn't "dumped," people still had to prove they could pay it back and lending wasn't assessed at 2%. Even if you refinanced at 2% coming from 4% wouldn't you have a look in the mirror and think "how long is this going to last?" JobKeeper was government back stopping the economy and paying a lot of people a smaller percentage of what they would have making to keep the economy moving along. You'd be mistaken if you think the government isn't going to claw it back. They are a cost centre not a profit centre.
2020 COVID bail outs cause this inflation. How come inflation remained low after GFC bail outs 2008/9. It just goes to show your idea of "money dumped into economy is wrong" but you can't get it into your head how come QE doesn't react the same.
I was in banking for a decade after the GFC and I saw how all the QE money worked. The TFF banks need to pay the RBA back, so you need to find people who will pay the bank back. I guess the RBA could pretend it is free money to get people to spend it, I pity those people. I've been taking my 2% borrowings and investing it at 5% or more. The free lunch (you still owe the bank the money) has a time limit attached.
You are talking rubbish because you have an overly simplistic view of the world and you have no idea of how economics work. Stop trying.
Fortunately this applies to you too.
That is true. The difference is that I am not using 'I think' as an argument, unlike you.
it wasn't "dumped," people still had to prove they could pay it back
You're still not grasping this. Where do you think all of this new money came from? When more money is created, it's artificially increasing supply, more supply cause the item to devalue. ie so you need more of it to buy the same things. This is what drives inflation.
How come inflation remained low after GFC bail outs 2008/9
Inflation doubled between 2007 and 2008.
how come QE doesn't react the same
Because it's different amounts at different times due to different circumstances have different results. QE can help prevent a recession, in certain circumstances, the difference with Covid was that the predicted apocalypse never happened, so far too much money was injected in the economy when it wasn't needed, hence we had the inflation we all just experienced.
I was in banking
In what capacity? Being a cleaner, or a teller, or working on the helpdesk doesn't really count…
For someone who worked in a bank you don't seem to understand the basics of creditYou are talking rubbish
Once again your opinion as a argument…
Inflation doubled between 2007 and 2008.
Now you just sound lost. GFC bail outs happened in 2009. I landed London at start of 2009 when it was all going down.
In what capacity?
Business Performance Management and Group Performance Reporting. Actual real global banks not like our Big4 building societies
When more money is created, it's artificially increasing supply, more supply cause the item to devalue. ie so you need more of it to buy the same things. This is what drives inflation
I don't think you understand different types of bail outs and monetary tools. How were they able to hand out billions to banks post GFC and have ZIRP yet inflation stayed at under 3% from 2010 - 2019.
If you look at the trillions the US government has borrowed (and spent) since 2020 yet the oil price based in USD you know it isn't true. There is no such thing as free money or dumping of money into the economy.
You'd think there is like 700 PhDs working as the US Fed (and probably the same number in the RBA) and you think you know better, that is the biggest joke.
You are just talking rubbish.
Now you just sound lost
I was using your figures. But I agree you are sounding lost now making stuff up as you go…
GFC bail outs happened in 2009
You literally said 2008 above now you are changing your story because your goofy story has been exposed lol…
But don't just take my word for it, the US government began measures in late 2007 through 2008: https://en.wikipedia.org/wiki/2007%E2%80%932008_financial_cr…
Business Performance Management
So admin… cool…
I don't think…
You'd think…
There you go with the thinking thing again. Try to construct an argument what doesn't rely solely on your opinion… then you won't like such an amateur…
There is no such thing as free money or dumping of money into the economy.
Of course there is, how do you think there is more money in the economy now than before? Someone, somewhere creates it. What magic do you think allows this to happen?
@1st-Amendment: You are just a kid. No common sense at all.
Keep going with your pub theory on inflation.
You have zero idea how it works. If you did you wouldn't be calling people names. It is reserved for people who actually can't have a civilized debate.
You are just a kid.
If you did you wouldn't be calling people names
Self awareness level zero lol…
Let me know when you work out how there is more money is the economy now than there was before without money begin created. Boy are you in for a big surprise 🤣
My renewal in Cairns went from $3200 to $2100 a year. Odd
Hate to see what it will be like after the current flood up there…
Would be a lot cheaper for them than if you paid full wack.
A lot of it would be picked up by other people too.
The next town my parents lived in got flooded last year. Insurance went up like 30%. Rang up insurer and they said: you're part of the insurance pool. Got to find where you are not part of that pool of geniuses.
This is likely due to the Government cyclone reinsurance pool and premiums dropping as a result of this if you are in a cyclone zone.
I noticed a similar difference. The PDS for each will allow you to compare coverage.
RACQ was amongst a bunch of insurers that quoted me around $3000-5000 to insure my home and contents ($150k home, 30k contents) even if they were to insure this postcode (southern cyclonic, but established, area).
In the end, I went to Shield who used Sure to insure me for around $1000 - and the coverage was pretty much the same.
I figure with such a huge difference in premium, every year I don't claim, is a handy buffer for any small future claims not needing to go thru insurance at all.
Real differences are in the PDS.