Car Insurance - Massive Increase

Nuggetron on 16/01/2025 - 12:23
Last edited 16/01/2025 - 15:11 by 1 other user

Just got my car renewal and it has increased from $1200 to $2000.

No claims made but I did lose the multi policy discount because they pulled a similar card with the home insurance. It is with Suncorp and on the old for new policy which I have paid for four years so they do have me bent over backwards there.

I think I'm happy to drop back to comprehensive and miss out on that old for new deal. Every year I've called, and they are becoming harder and harder to drop the price and when they finally do it's nowhere near as much as it was dropped the previous year.

It's a standard Kia Cerato so nothing special to justify $2k, and the first random quote I did with ING (where home and banking is) was $1200 (with 15% first year discount).

Thoughts?

Worth dropping new for old after paying for it 4 years?

Financial Car Kia

Comments

    • spal on 17/01/2025 - 07:18

      I am pretty sure with AAMI new for old works only if you are the first registered owner (not a demo car) and the car is less than two years from the date of its first registration. As the car is now four years old, you will find that there is no new for old cover for your car. Strangely though, I found with AAMI new car insurance was pretty cheap, even with the new for old cover. However, as the car goes past the warranty, the insurance costs jumped significantly.
      Have you tried Budget Direct. I found them cheaper than AAMI for my cars which are out of warranty.

    • Sigiriya on 17/01/2025 - 11:23
      +1

      This is the Suncorp trick. They did the same to me. Did a massive increase after 3rd year so if I need the new for old, I need to pay twice to keep the policy going or give up which means I will not be eligible to new to old as the vehicle is more than 13 months old. GIO also did the same. They are also a Suncorp company. Until the regulators pick this practice, it is going to continue.

      • tomfool on 17/01/2025 - 12:51
        +3

        The new for old is a risk for them as you write off you 3yo car worth 15k and then buy you a 40k new car 3X what they would have [aid you out. Sure is smart move by them lock you in until it becomes to expensive, but there is a risk that they have to pay you out.

  • radicalvin on 16/01/2025 - 16:14

    I've never once accepted the renewal notice throughout the years and have mostly jumped from one insurance to another.

    This year, my C200 Budget direct increased from $1050 to $1150, however, managed to drop this to $856 (plus 24k Woolies Points) with Everyday Insurance because I only drive this car less than 3k km annually.

    The M3 using RAC increased from $1750 to $1900, managed to find NRMA and dropped this down to $1100.

    Both insurances are like for like in terms of value, excess, etc

    • Gdsamp on 16/01/2025 - 16:48
      +1

      like for like in terms of value, excess

      Hopefully like for like in terms of service, willingness to pay out in event of a claim……

      • radicalvin on 16/01/2025 - 22:54

        To be honest, in the past 15 years, we’ve made around 10 various claims with 5 different providers and all of them have been great

    • Guybrush57 on 16/01/2025 - 20:37

      Very intriguing that NRMA was much cheaper. Usually they are hideously expensive.

      • radicalvin on 16/01/2025 - 22:52

        Agreed, I was very surprised

    • LVlahov on 17/01/2025 - 20:35

      My RAC insurance has gone up the last two renewals, despite the value insured going down quite a bit (normal aging vehicle), and no accidents or fines or anything else to impact from my end. Have shopped around each time but found that they were still the cheapest.

      I'm saying about $300 more per annum (+30%) while the vehicle is insured for $6k less (-20%) than when it was initially insured.

  • TEER3X on 16/01/2025 - 17:00

    Move to a safer area.

  • EightImmortals on 16/01/2025 - 18:14

    "It is with Suncorp and on the old for new policy"

    Yeah I had that until last year as well. I ended up just doing an agreed value policy for pretty close to the value of car at a much cheaper premium with someone else. If I had written the car off it would only have been an extra grand or 2 to replace it.

  • xuqi on 16/01/2025 - 19:17
    -1

    This makes 0 sense. I insured a new 2025 BYD Seal Premium ($59000) with RAC for $1248.53, and they're charging you $2K for a Kia?

    • JimmyF on 16/01/2025 - 19:21
      +4

      I'm paying more than $1350 for a 10 year old Toyota that's worth $15k at most! So yeah yours seems cheap!

      • Bruceflix on 17/01/2025 - 12:16

        Are you under 25 and/or a spotty driving record. Sounds a bit insane.

      • tomfool on 17/01/2025 - 12:53

        Older cars also maybe harder to get parts for.

      • LVlahov on 17/01/2025 - 20:37
        +1

        Suburb and state you live in can have a massive effect. Also whether it is parked in a garage or on the street etc.

    • Nuggetron on 16/01/2025 - 20:04

      I just got a quote for standard comprehensive and it's 2.1k with Suncorp!
      No at fault accidents on my or my wife.
      I've had 1 not at fault accidents but Suncorp are one of the few who don't ask unless you're at fault.

      • spal on 17/01/2025 - 07:21

        AAMI is also based on annual estimated kilometres travelled, the number of days used for travel to work, and number of days you drive during peak hours. That might help with reducing the final price.

    • someone else on 17/01/2025 - 07:50

      NRMA for my 2024 BYD Seal Premium is $2k without any use of insurance or other negative factors. These things not always make a lot of sense.

      AAMI is the cheapest for me: $1300 with reduced excess for glass and roadside assistance.

      A few quotes were more than 3k with the same excess and cover.

  • Save 50 Cent on 17/01/2025 - 07:33
    +5

    Just crash the car before the renewal. That would teach them.

  • DarkOz on 17/01/2025 - 07:41

    Shop around and find a better deal. If you can't find a better deal try finding out why it's so expensive.

    Maybe it's where you live and your driving habits. I remember a long while ago we got a reduction simply because we moved to a "safer" area, with a garage and driving less. If you haven't moved, maybe your area has gotten bad.

  • Trying2SaveABuck on 17/01/2025 - 08:14

    inflation has been most prominate in the 'insurance' sector - all you can do is 'shop around' and try and jump on the odd promo that lights up on ozbargain to get a better value

  • Cluster on 17/01/2025 - 10:10
    +3

    I wonder what the excuse is from the insurance company.

    It used to be COVID. COVID was the magic word to excuse all price increases. COVID made everything more expensive.

    Then it was the shortage of cars and rising prices. Prices are higher, so insurance costs more.

    But now car prices have stopped rising, and we've seen some very steep falls thanks to competition from Chinese EVs.

    So, what's the excuse now?

    • jv on 17/01/2025 - 10:14
      -1

      So, what's the excuse now?

      fires

    • Miami Mall Alien on 17/01/2025 - 13:19
      +1

      So, what's the excuse now?

      Don't need one in a country as apathetic as Australia. Consumers will hand you the lube before you bend them over.

    • 91rs on 17/01/2025 - 14:19

      Profit, got to keep share holders happy.

  • apple2016 on 17/01/2025 - 10:21

    Usually car insurance jump a fair bit about the 5 yr mark as its when the model is out of production for long enough that parts are getting expensive. Try increasing the excess if you are relatively a defensive/safe driver.

  • TheKas on 17/01/2025 - 10:51

    I like everybody else here am in the same boat with comprehensive cover.
    You could consider switching to 3rd party for a fraction of the price, if you're open to being exposed to the risk of not being covered for an at-fault accident.
    I am still hesitant to downgrade.

  • Frosty17 on 17/01/2025 - 12:00

    Definitely shop around and try the new customer sign up to see what the new rates are, then take a screenshot and ask to match. It's an absolute PITA but worth the savings. Insurance companies are the worst.

  • Purp on 17/01/2025 - 14:24

    Whatever company has the better price, no point being loyal to a company that gives 0 shits about you and would drop you in a second.

  • vicepresident007 on 17/01/2025 - 15:21

    get a e bike instead?

    • hopper on 17/01/2025 - 18:29

      Ebike is great and cheap for small and solo commutes when weather is good.

  • Munki on 18/01/2025 - 00:32
    +2

    We need more Luigis in this world.

  • R4 on 18/01/2025 - 02:35

    Not really experiencing this - yet. The insurance on my I20N increased about $50 to $720. $830 on the new Triton that I recently bought which is about $150 more than the 13yo Triton it's replacing. This is with RAC WA.

  • SuperMid on 18/01/2025 - 06:58
    +1

    In unprecedented times, due to covid 19, we apologise that your insurance premiums will double. We apreeeeseeate your time.

  • STE on 18/01/2025 - 07:47

    welcome to 2025, our house insurance just went up by $2000. Car insurance went up $290 (Golf GTI 2022). Both AAMI.

  • D3HUN on 18/01/2025 - 14:43
    +1

    No surprise there. Just watch a few "Dash Cam Owners Australia" videos, and you might understand why insurance is getting more and more expensive.

    • Mysterious on 18/01/2025 - 14:52
      +1

      Start handing out demerit points for people who repeatedly cause accidents.. crazy how you can play dodgem cars our roads and get away with it.

  • ratman on 18/01/2025 - 14:49
    -1

    It's called loyalty tax. Always get a new policy as a new customer from scratch, rather than the renew option

  • Boomstick on 18/01/2025 - 16:30

    2k for a cerato. Officially lost the plot. I pay about that for Ute + caravan combined. $125k insured value.

  • Dreamcast on 18/01/2025 - 17:05

    Nah yeah nah. Suncorp have always been a massive rort.

    For my 2016 wrx sti, paying $2100 a year with Aami and valued at $38k.

  • melancholykeith on 18/01/2025 - 19:22

    My renewal came in at $1291 with no changes or claims, which was at least $250 increase over the previous year. Did a comparison search on a consolidation website and managed to get my policy again with the same provider for $926

    • DannytheMan on 19/01/2025 - 07:56

      Don't mind me asking, what's the consolidation website?

      • melancholykeith on 19/01/2025 - 09:22
        +1

        Probably can't say the name or provide a link but it was Simples….

  • trevor99 on 19/01/2025 - 07:54

    Unfortunately car accidents were flat or decreasing until 2020-21, and they've been rising since.
    Something occured at this time leading to ongoing increasing brain damage.
    Drivers sometimes zone out these days :((

  • Powershopz on 19/01/2025 - 12:25

    Had the same issue last year. My current policy is coming up for renewal in March so I'm expecting to get hit again.

    Have a 2018 Mazda 3. Last year RACV increased my policy from $1400 to $2300 (64% increase!)…. Shopped around and got $1550 from Youi.

  • Make it so on 23/01/2025 - 13:31

    Yeah, it's nuts. We are paying double the premium for one of our cars at 8 years old compared to when it was new. I've been increasing the excess each year.
    And with the massive fires in LA, you can expect insurance for everything to rise worldwide, because that's how insurance works - they insure with one-another.

    Home insurance is worse - different underwriters use different datasets (e.g. for bushfire risk, flood risk, etc.) causing wild differences. BUPA once increased our home insurance by 70% because of bogus flood risk, and lied about getting data from our council about this. All insurance companies using the same underwriter came back with similar quotes, but RAC quoted way less. I know someone else whose property gets a high quote from RAC, but much cheaper with QBE.

    All you can do is shop around each time renewal comes up.

    Also, outside-the-box idea, novated leasing (if your employer supports it) is starting to get really appealing as you can pay insurance and rego pre-tax. I am finding that the purchase of the car is getting less than the running costs over the life of the car. Add in other EV benefits (no GST, no FBT, plus whatever your state offers), and it may be cheaper to ditch your current car.

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