Car Insurance rip off.

[scagman (John)]

I just got my renewal notice for my car insurance last week. My premium has gone up 17%, from $948 to $1108 and my excess went up 160%, from $550 std exc. to $625 + $800 vehicle exc.

I rang them to find out why and they said yes we had a price increase and because I drive a V8 I now have the extra $800 vehicle excess.
I am rating 1 and 47yrs old. The car is a ford BA 1 tonne RTV v8.

This is just highway robbery. I could maybe understand it if I was 18 driving an XR8 or GT or something but on a 1 tonne ute.
So its time to let the fingers do some walking.

Rant over

[OICURMT]

Time to shop around...

Hopefully you can find a company that won't gouge.

I wish Austraian business were as competively driven as those in the US.

[torana68 (Roger)]

some companies do this, I rang mine and asked for an explanation and they dropped it back to what it was, I dumped them and went to Shannons. The idea seems to be (from an industry insider) they are competitive initially then up costs, most people just pay, if you complain they drop it cause your such a good customer...... Car insurance has some dodgy players you really need to read the fine print and ask around.

[Iain.k (Iain)]

This is much worse if your 21 like myself pluss being a uni student.
I have never had any accidents while driving and I have my motor bike liences aswell, and yet they charge huge amounts just because I'm young. Granted there are many stupid rav heads my age but it sucks that we all have to pay so much just because of a few who are too stupid to drive with care.

[midnight (Darrin)]

It's one of the reasons why about 10yrs ago, I decided to "self insure" - ie only 3rd party property and take the risk on theft, fire and damage due to my own fault.

It's a personal choice and there is risk but over a lifetime, I figured how many times would I expect to submit a claim.

The savings start adding up over the years. But as I said, I am taking on & managing that risk.

Darrin...

[Larryp (Laurie)]

My insurance goes up every year, too. Changed companies last time, but still paid more. They tell me its because of the huge payouts on the Queensland floods. I am 67years old, with a totally clean driving record.

[TrevorW]

I think the more you are on the road the greater the risk therefore you should have scaled premiums but most insurance companies don't work that way

[Astro_Bot]

Even companies with good reputations do this - I've experienced it many times. Also, if you have an "agreed value" policy, watch for that to drop like a stone without warning.

What I find really interesting is how I can feed in almost identical figures into the online quote application and get a significantly lower premium ... with the same company! (You do have to be a bit vague with name, age and address otherwise they know it's you).

[pmrid (Peter)]

Originally Posted by TrevorW

I think the more you are on the road the greater the risk therefore you should have scaled premiums but most insurance companies don't work that whey

A brainstorm: A national comprehensive motor vehicle insurance scheme which was compulsory and funded out of a small increase in the excise in fuel would be one way of achieving just that. The more fuel you buy, the further you are travelling. It would also encourange more fuel-efficient vehicles on the roads.

Increase the cost of fuel by, say 15 per litre and take the insurance out of the hands of the gougers. That would mean, for the average vehicle consuming say 10 liters per 100 km and doing say 20,000 km a year a cost of about $300. I'd be amazed if you couldn't fund a national insurance scheme for that sort of money.

No more being rammed by some uninsured idiot - in fact you could make it a no-fault scheme if it was universal and compulsory.

Peter

[AstralTraveller (David)]

My father was a panel beater working in a small business, which is the norm in that industry, and their work was >95% insurance jobs. So there were a few very large companies (and NRMA was by far the biggest and most influential) dealing with a mass of small businesses. And didn't they use that advantage! At one point a panel shop was being paid less than half the hourly rate motor mechanics (who mostly deal with individual customers) were charging, yet the overheads in both businesses are much the same. Then they consistently and methodically underestimate the time required to do a job. My father used to say: 'Insurance companies give you nothing and take you nowhere.' With that as background I have never trusted or respected them.

[scagman (John)]

Yes I do understand that prices go up but nearly 20% for the premium and 160% for excess is just a bit much.
Well found some insurance for $760 + $600 Excess. A bit more reasonable.

[Terry B]

Insurance seems to be completely out of the price range of young drivers.
I have an X-trail that we kept for my son to drive. It is insured for $22000. When he got his licence we informed the insuror that it was going to be driven by a driver on P plates. I have a 60% no claim bonus and multi insurance rebates but despite this the premium was over $2000. Without the rebates the premium would have been over $6000. ie 30% of the value of the car. This was for my son to drive a car fora few months a year when he isn't away at uni.
If he was insuring the car then there is no way this could be afforded. The car would not be insured and hence no ability to build up a no claim bonus.
How can a young person actually build up a no claim bonus?
This affects all of us as if we are hit by a young driver then the likely outcome is that the car won't be insured.

[OICURMT]

Originally Posted by Terry B

Insurance seems to be completely out of the price range of young drivers.
I have an X-trail that we kept for my son to drive. It is insured for $22000. When he got his licence we informed the insuror that it was going to be driven by a driver on P plates. I have a 60% no claim bonus and multi insurance rebates but despite this the premium was over $2000. Without the rebates the premium would have been over $6000. ie 30% of the value of the car. This was for my son to drive a car fora few months a year when he isn't away at uni.
If he was insuring the car then there is no way this could be afforded. The car would not be insured and hence no ability to build up a no claim bonus.
How can a young person actually build up a no claim bonus?
This affects all of us as if we are hit by a young driver then the likely outcome is that the car won't be insured.

This is why young drivers should buy a used tank, minimal insurance (liability) and learn to beat out the panels themselves...

No way a young person today can save for the future when insurance companies (and the rest of normal cost of living) sucks the life out of you...

Thankfully () I'm getting old now with a good driver record...

[kustard (Simon)]

I've been pretty annoyed with car insurance lately, it's a lot to pay and yes it has served me in the past when my car got run into but there was a lot of headache that went along with just having to deal with the companies themselves...

[wasyoungonce (Brendan)]

As others have said...you go on line and get other company quotes, of course these will be cheaper that yours.

Now ring up your insurer and complain. You will find they suddenly lower the re-insurance rate considerably if you do it right.

I found our insurer, AAMI had cheaper rates for our vehicle on-line than the re-insurance quote I received from them. I called, mentioning loyalty and on-line prices and they were very helpful. They lowered to better than the on-line rates for me so I was happy. Just engage them in conversation...don't huff and puff...this turns the operators off. I have done this every year for the last 5 years (different vehicles though) and it works every time!

Don't be afraid to change companies either but stay away from some of the newer or smaller companies that insure you less if you drive less...there is always a catch!

Oh, I also try to insure for "an agreed value". Not for an outlandish amount but for something better than their "market rates" which decrease as the vehicle ages ....yet you pay more for insurance! One of the mysteries of life!

[doppler (Rick)]

third party fire property and theft ,if its not your fault the insurance will look afteryou $300 per year p plater (comprehsnsive quote was $2000 aka skyline 1995)

[doppler (Rick)]

M daughter has just passed her licence test ,here in QLD. After looking through her test sheets I think,that most current drivers would not pass the same test through technical errors.

[Astro_Bot]

Originally Posted by wasyoungonce

Oh, I also try to insure for "an agreed value". Not for an outlandish amount but for something better than their "market rates" which decrease as the vehicle ages ...

Not to mention that the "market value" is, in general, whatever the insurance companies say it is. I don't see the point of insurance unless I know the value covered and I don't fancy having to sue them to get the true value of the car.

[blindman]

Why you are all afraid to live without leaches on your back - insurance compa nies? Just drive !

[ourkind (Carlos)]

Having worked for insurance companies in the past, if they hike up your premium and excess, it means they don't want your business anymore and they'll welcome you to look elsewhere. Their iternal form of risk management.

My advice is look elsewhere as you will definately find a cheaper rate.