Car insurance premiums are set to rise about 4% in the coming months, as insurers attempt to squeeze out more profit. The forecast comes from the latest report released by JP Morgan and the consulting firm Taylor Fry.
Seen one, seen ’em all
But the truth is, there really isn’t much to differentiate car insurance – most policies offer similar, if not identical, features. And thanks to consolidation, many companies are the same – just operating under other brands.
Nearly all comprehensive car insurance policies offer cover for accident, theft, fire, storm, flood, hail and vandalism, and provide at least $20 million of public liability.
Most car insurance policies also offer a 24-hour helpline, lifetime repair guarantee (if you use an authorised repairer) and an agreed-value policy, meaning you decide how much to insure it for (with the exception of Bingle, which offers market-value only).
That makes price the main consideration in most cases.
There is no benefit in being loyal – even though I can’t help myself
Most insurers know us too well. They know we’re too lazy to shop around.
So they offer newcomers discounts and nothing to staying put. So it’s important not to pay the lazy tax by just mindlessly renewing an existing policy.
I just spent just 15 minutes getting quotes online from 4 different companies. All of them had very simple quoting systems and the process was really easy to do.
I was actually staggered at the differences in the quotes I received and how each of these different companies have priced me and my car’s perceived risk. Each person and car would be assessed differently, so these results are not meant to make you assume that one company will always more expensive than another, because they’re not. Here are the results I received when all of the parameters/variables were the same:
- AAMI : $818.35
- Allianz : $811.28
- Budget Direct : $669
- QBE : $1,140
So for 15 minutes work, I could have saved $149.35. If I was working, that would be an hourly rate of $596 or a daily rate of $4,172.
Paradoxically, I’m sticking with AAMI, because they paid a massive claim for a really dumb at-fault accident I had a couple of years ago. And they were really nice about it. I can’t help but be loyal, despite the price differences.
But at least I made a conscious decision.
Compare your current policy and get a quick online quote by trying different companies. I’ve included links below. If you experienced significant differences, like I did, please share your experience by commenting on this article.