AAMI Comprehensive Car Insurance Renewal Price

Limolared on 08/11/2014 - 14:20

Wanted to check to see if anyone has seen this before.

I've been with AAMI since I bought my brand new compact car 6 years ago. I received my comprehensive policy renewal letter in the mail last week for $650 (full year coverage, no accident, no driver less than 25 years old, max excess) which I thought was a bit much as I only paid no more than $600 last year so I started getting online quotes from the usual suspects (NRMA,,Allianz, Woolies/Coles etc).. they all came in over my quote from AAMI so I thought alright, I guess I'll pay the renewal (due in a few weeks), but then I went and created a new online quote from AAMI with the exact same details (coverage/excess etc)… and was shocked to find out the new quote for virtually the same coverage was over $100 cheaper! I save the quote to make sure I check in detailed that it was exactly the same coverage as what I had before (it is) then an hour ago I got an email from AAMI saying if I do purchase and pay for the online quote I will receive an extra $50 voucher as well (choice from Myers, JB Hifi, Hoyts etc).

I'm totally shocked, hopefully this helps other folks out there who normally would just pay the renewal fee without doing a little bit of research.

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Comments

  • gevidian on 08/11/2014 - 14:59
    +2

    This is very normal for many insurers. The cheaper first year fee is to get you to buy from them - they then make more in the subsequent years.

  • Cheeper on 08/11/2014 - 15:24

    Happens all the time. Insurers know that most people just pay the premium and move on.
    The 1% of us that check these things are the ones that save.
    I got the best deal last time from http://www.progressiveonline.com.au/?code=9002826102&gclid=C…

  • wcm8382 on 08/11/2014 - 17:37

    This isn't anything new.. the insurance companies almost always offer a lower price for new customers than a renewing customer. I'm with AAMI too and the longer you're with them the higher the discount (same for other companies too) so you get the impression that you're getting a good deal but far from it. Best thing to do when your insurance is up for renewal is purchase a new policy. Almost always works out cheaper.

  • timmypete on 09/11/2014 - 10:36

    The 'Lazy Tax' is a huge issue in the insurance arena.

    There was quite a good discussion earlier in this post.

    You'll probably find that AAMI won't honour a web quote for renewal. You're almost certainly better off shopping around every year than relying on insurers long term customer discounts.

  • PVA on 09/11/2014 - 10:41

    You say virtually the same, does that mean there is a difference in the cover so can't really compare?

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