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Car Insurance Quotes – Any intell?

By 20 May 2014 10

Yesterday I spent quite a bit of time playing the “Online Quote” game for car insurance – and I was a bit shocked as to the variation between the various companies.

Q: Does anyone have any intell on how these systems work?

Firstly I thought I would utilise one of those “comparison” websites that advertises on TV – but it wouldn’t even accept 2014 as a model year (oh well – move onto the individual quote game).

I sought quotes from 9 companies and I fed in the exact same details into every system (drivers, history, garaging, use, etc). Interestingly there must be an alignment between some of the companies – as their systems were identical (just with a different logo and colour scheme).

My quotes ranged from $514pa, $604, $733, $770, $819, $841, $1006, $1,222 to my personal favourite: $1,337pa – all for similar Excess rates.

Now I am not trying to “name-and-shame” companies – but my curiosity wants to know how the back-end systems can be that different in their workings…

I would love any info from ‘people in the know’.

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10 Responses to Car Insurance Quotes – Any intell?
#1
A_Cog12:30 pm, 20 May 14

I played the same game last month! My annual renewal quote was $793, so I hopped online and got a few quotes for around the $600 mark. I called my current insurer and said what I had done. They said, “well you’ve been such a great customer that we’ll match the offer.” My fee was changed to $603.

just. like. that.

Disturbing.

#2
Genie2:11 pm, 20 May 14

I just moved house and needed H&C insurance…

I went with YOUI, my combined car insurance and H&C insurance was cheaper than what I was just paying for my car with GIO (who I always found cheap and reasonable)

I couldn’t find much difference in the policies, apart from my car was insured for an agreed value with GIO and it is market value with YOUI. Everything else appears to be the same.

#3
watto234:44 pm, 20 May 14

Well my car and home and contents were just up for renewal. My home and contents seemed excessive. So I started the comparisons. YOUI surprised me at how expensive they were! After all those ad on saving and given I do quite low kms per year they were $300 more for car insurance and about the same for home and contents. Budget Direct were cheap but still an unknown. In the end I tranferred my home and Contents to NRMA for a saving of $350! and kept the car at AAMI because the agreed value was $3k more ($7500 vs $4500) for the same premium and a better excess.

Funny thing was, AAMI wondered why I didn’t renew my home and contents insurance. I told them it was too expensive and they offered a cheaper deal because I was such a good customer. I basically told them if they appreciated me that much they should have given me the best deal up front and not hoped i did no comparisons and went elsewhere.

Same story with my scooter last year. Low of $180 to a high of $1500!!!
And the discounts for having all policies together usually don’t out weigh the savings made by shopping around.

#4
davo1019:23 am, 21 May 14

A_Cog said :

Disturbing.

Nah. Just lazy tax.

#5
ouyangkai12:15 pm, 21 May 14

Note that when you get to the end of an online quote for one ‘cheap’ insurer (and you have an amazingly cheap quote), it is not until you accept the quote that additional questions are asked about windscreen replacement and car rental. This can up the quote to a great cost than other providers.

I am also with youi and went through my usual rounds for cheaper quotes last year. Similar to others, youi dropped the cost by a couple of hundred dollars when we had a chat about leaving.

#6
watto2312:42 pm, 21 May 14

ouyangkai said :

Note that when you get to the end of an online quote for one ‘cheap’ insurer (and you have an amazingly cheap quote), it is not until you accept the quote that additional questions are asked about windscreen replacement and car rental. This can up the quote to a great cost than other providers.

I am also with youi and went through my usual rounds for cheaper quotes last year. Similar to others, youi dropped the cost by a couple of hundred dollars when we had a chat about leaving.

Yet for me YOUI couldn’t match my current policy, despite driving less than 20,000kms per year which is on one of their ads. The lady said there is obviously something there increasing the premiums.

The moral of this story is do check annually or at least every couple of years, especially if they go up.

#7
Innovation12:54 pm, 21 May 14

watto23 said :

ouyangkai said :

Note that when you get to the end of an online quote for one ‘cheap’ insurer (and you have an amazingly cheap quote), it is not until you accept the quote that additional questions are asked about windscreen replacement and car rental. This can up the quote to a great cost than other providers.

I am also with youi and went through my usual rounds for cheaper quotes last year. Similar to others, youi dropped the cost by a couple of hundred dollars when we had a chat about leaving.

Yet for me YOUI couldn’t match my current policy, despite driving less than 20,000kms per year which is on one of their ads. The lady said there is obviously something there increasing the premiums.

The moral of this story is do check annually or at least every couple of years, especially if they go up.

Our premium would have been hundreds cheaper with YOUI except that they charge a premium for learner drivers. Other insurance companies only do this for new or young fully licensed drivers and ignore learner drivers for the purposes of calculating premiums.

#8
dtc5:32 pm, 21 May 14

Just as tips…

Market value and agreed value are quite different. Agreed value is better but more expensive. More important on cars and contents (very rare for an entire house to burn down, although of course it happens during bushfires etc)

Your current insurer will first try to reduce your premium by suggesting a higher excess or lower agreed value. Just ignore that and they will give in.

Budget Direct is underwritten by/a subsidiary of auto and general (AGIC), a pretty big company. No insurer in Australia is a risk, they all must meet APRA liquidity etc requirements. Which are much stronger following HIH (well, I guess there is a very small risk but its very small following HIH)

If you drive less than 8000km per year, its way cheaper to get one of those limited km policies. Actually, if you drive less than probably around 11000 its cheaper, but not by so much.

#9
Primal1:01 pm, 22 May 14

There’s also the small matter of quality of service when you do need to actually claim something… cheap can lead to regrets. I pay what is probably over-the-odds for my car insurance, but my insurer of choice has been very good to deal with when I’ve had to make a couple of claims over the years.

If an insurer can offer you the same coverage for less $, just ask yourself where they are making up the difference and hope it’s not in customer service.

#10
Innovation2:03 pm, 23 May 14

Another thing to be wary of is the risks of insuring for an agreed value that is above market value. If your car is badly damaged, the insurer might be more likely to repair your car rather than write it off – even if the cost of repairs are more than the market value.

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