Beware house insurance goes up year...

hb40 on 23/03/2013 - 00:47

Hi,

I was sitting next to some suited gentlemen at a restaurant a little while ago and they were discussing how insurance companies expect their customers to stay with them 4 years on average. So they tend to put their prices year on year to maximise their profits from existing customers.

I've started watching my own house and landlord insurance it's pretty clear that if I stay with an insurer their premium goes up every year (in some cases by $100s) compared with a new quote by a competitor.

So it seems that they give you a good price if you're new to lure you in then increase their prices year on year.

I've since cancelled my auto renewal on my house insurance and have decided to shop around when the current insurer puts up the prices.

If anyone has tips on which home & landlord insurer they've finding to be competitive let us know :)

The 3 I've used most recently for different properties are Allianz (seems competitive but only been with them for 12 months), AAMI (their prices seem to go up a fair bit every year), CGU (via yourshare.com.au) who don't seem to be very cheap but was trying out the rebate scheme that yourshare.com.au offer.

I haven't been able to spot any consistent pattern of a particular insurer being cheaper, it seems to depend on the property, location etc.

cheers

HB40
dealsminder.com

Home & Garden

Comments

  • Geewhizz on 23/03/2013 - 07:25
    +1

    I think you really need to consider every possible scenario and ask a lot of questions (and hope they're the right ones) when deciding which insurance company to deal with. For instance, all three of the companies you mentioned, along with Elders, are the ones who, although people believed they were covered for flood, have refused to pay out for the recent floods in the Bundaberg region. There are possibly others, but these are the ones I know of.

    We've had a few bad years here in Australia for disasters, and sadly, insurance prices are going to increase because of it.

    Shop around, for sure, but make sure you're shopping for an equivalent product, and above all, make sure you're going to be covered should you be in the unfortunate event of having to make a claim.

    • c64 on 23/03/2013 - 13:34

      and the profits of insurance companies has also soared

  • ACTGBilly on 23/03/2013 - 11:07
    +1

    I'm inclined to agree with Geewhizz. I am keen to shop around to get the best price also as my premiums have gone up 80% over the past few years. I will, however, be making sure that I am fully covered. Here's something I didn't know (from the ABC's new consumer affairs/comedy show The Checkout, starts at 9:58):

    http://www.abc.net.au/tv/thecheckout/episodes/ep01.htm

    We should all probably go for full replacement policies… I hope that doesn't raise my premiums!

  • Stumper on 23/03/2013 - 21:49
    +1

    I have recently changed my landlord house insurance from Allianz to GIO. I have been with Allianz for nearly 10 years because my employer offered employee discount on all insurance provided by an insurance broker company which is wholly owned by my employer .

    I have since retired and yet each year , my insurance premium increased by at least 5 % . This year I said enough is enough . I rang a few insurance companies and GIO comes out the cheapest with additional discount for seniors.
    This year on one insurance policy alone , I saved $210 by switching my insurance broker and go directly to the insurance company. I tend to agreed with you and I will definitely keep an eye on my next year renewal to make sure that any increase in premium has been reasonable .

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