Check Your Insurance Company Isn't Ripping You off!

Halo375 on 07/06/2017 - 09:39

Today I received my annual policy documents for my home insurance. I hadn't checked it in a few years and I'd been a loyal customer of Budget Direct for a few years. I figured it might be time to check my policy and make sure I'm still getting the best deal that I found all those years ago.

I visited their website and entered in all the same details that I have with them for my existing policies that they have no issues with charging me each year.

What I found was that their website quoted me $150 a year less on my car insurance and $200 less on my home insurance for the EXACT SAME GODDAMN POLICY I was supposed to be paying them for. So I called them and they acted very surprised - "How could that be? I'm so sorry… let me reduce that for you immediately".

This is just a simple Public Service Announcement - each year, check that your own insurance company isn't just taking advantage of you. I'm sure a lot of people are like me - they do a lot of work to get the best deal at the start and then don't continually keep an eye on that deal.

Don't be like me. Check your insurance and get the best deal every year!

Financial

Comments

  • demiurge on 07/06/2017 - 09:43
    +1

    I think that's because they usually apply some online purchase discount if you buy a new insurance online.

    • Halo375 on 07/06/2017 - 09:45

      It could be, they do want to attract as many new customers as they can and then gradually increase those premiums each year. They're a business and I can understand that, it just bugs me that's all. They still gave me the reduced price as an existing customer though. Worth checking out.

  • John Kimble on 07/06/2017 - 09:46
    +4

    Thanks for the PSA, but I would have thought all OZB members would know this. Applies to many other things too, bank accounts/loans, utilities, etc

    • Halo375 on 07/06/2017 - 09:47
      +2

      I knew this, but didn't act on this. Need to always be thinking - WWOD? (What would Ozbargainers Do?)

      • John Kimble on 07/06/2017 - 09:48

        Yeah, I suppose that laziness or forgetfulness is what they profit off. Most people don't bother, so they win.

  • Banana on 07/06/2017 - 10:05
    +1

    I made the same complaint to Budget Direct (AKA my ex-insurer) and the girl basically said because I had been a long term customer (~ 5 years) that I was not as worthy as their new customers. I quickly terminated the policy and moved to another insurer.

    • Halo375 on 07/06/2017 - 10:10

      Damn - I think some customer service reps just reach their limit and occasionally, very rarely, decide to speak the truth. Glad you managed to get out and fight for a decent deal.

  • PJC on 07/06/2017 - 10:15
    +1

    There is no loyalty in insurance.

    • Halo375 on 07/06/2017 - 10:22
      +3

      There is only laziness. Maybe they should start up the first "Laziness Rewards" program where you're rewarded with a $100 increase in your premiums each year?

      • PJC on 07/06/2017 - 10:29
        +2

        Several times I have saved money by seeking alternative quotes.

        In 2000 my stepson received an NRMA renewal approximating $1,050 for his standard Holden Commodore. I said it should be cheaper now he was over 25. Every quote I obtained beat it easily. So I went to the local NRMA branch in case there was an error. The lady there confirmed the original figure, looking at me as if I was stupid for asking. He transferred to another firm for about $375.

  • [Deactivated] on 07/06/2017 - 10:22

    There was a pretty good story on the Checkout on how insurance companies only bother chasing new business and shaft existing customers. It's a bit like Jenny Craig and ebay.

    • Halo375 on 07/06/2017 - 10:24

      In classic Marketing practice it is significantly cheaper to retain customers than to source new ones. I guess they just believe all customers are unloyal scumbags who they try to steal from their competitors. If they reward that behaviour with lower premiums then they're just going to continue to drive that behaviour.

  • Fergy1987 on 07/06/2017 - 10:26

    I got told "There is no further discount we can offer" - I have all these "Discounts" applied to my annual insurance and yet the figure is pretty much standard with the rest of the insurance companies…..So basically my loyalty bonus, no claim bonus, silver member bonus, multiple policy bonus, good driver bonus amounts for $0

    • Halo375 on 07/06/2017 - 10:30

      But you've got FIVE DIFFERENT BONUSES! That's amazing! You should be so happy! I guess they're kinda like Xbox Achievements - not worth anything whatsoever but they expect it to make you happy. The marketing guru at that company must have been so proud when he/she sold the idea of these bonuses that are worth nothing.

      • Fergy1987 on 07/06/2017 - 10:33
        +3

        I was super thrilled - I threw a party and everything! - I cannot wait to receive my GOLD membership card!!! GOLD!!!!!!!!

        • starburstyellow on 07/06/2017 - 19:41

          Like the recent Gold Hertz plus deal on ozb, only for me to realise gold is free -_-

  • Looking4Bargians on 07/06/2017 - 10:36

    I saved $200 annually by switching from Budget Direct to other provider yesterday.

    • hashtagbargain on 07/06/2017 - 12:30

      Oh gosh I just joined budget direct! Who are you with now?

      • Looking4Bargians on 07/06/2017 - 13:53

        AAMI… Some ppl move from AAMI to go with Budget Direct. It depends where you get less quote for same fine print things.

  • donbot on 07/06/2017 - 10:37
    +2

    I drive to/from work everyday (at least 30mins each way). I use my time stuck driving to get a better deal on everything possible.

    • Utilities
    • Insurance
    • Credit Card Deals (Points/Balance Transfers to obtain free cash for mortgage offsetting purposes)
    • Phone/Internet
    • Foxtel
    • Loan interest rates

    If you have bluetooth in your car, you have no excuse. If you dont have bluetooth - buy a dongle and it'll pay for itself 10 times over for no loss in your free time.

    • Halo375 on 07/06/2017 - 10:48

      Good advice, thank you.

    • Looking4Bargians on 07/06/2017 - 10:59
      -1

      You can't touch the phone while car engine is ON. I am sure you don't have saved numbers for all these providers in your Dial PAD

      • donbot on 07/06/2017 - 11:12
        +1

        Incorrect. Source

        Fully licensed car drivers

        Using a mobile phone while driving is prohibited, except to make or receive a phone call or to use its audio/music functions provided the phone:

        is secured in a commercially designed holder fixed to the vehicle, or
        can be operated by the driver without touching any part of the phone, and the phone is not resting on any part of the driver's body.
        Using a phone as a navigational device/GPS while driving is prohibited unless it is secured in a commercially designed holder fixed to the vehicle. All other functions (including video calls, texting and emailing) are prohibited.

        • Looking4Bargians on 07/06/2017 - 11:33
          -3

          but u didn't mention the phone is in the fixed holder…..

  • bobbified on 07/06/2017 - 11:15
    +5

    I had this same issue with AAMI previously. I check each of my policies each year knowing that they send out these renewal notices hoping that people would just pay their renewal without checking - I used to work in the Motor Insurance industry and it was common knowledge amongst us.

    I called AAMI and they refused to reduce the price on the renewal notice to the price that was online. After arguing for a while, the rep also told me that if I was to take up a new policy, I'd lose my no claim bonus because it's considered a 'new policy'. I called them bluff and went ahead and purchased a new policy online anyway. (They were the cheapest and I'd previously had good experiences with their claims process).

    Low and behold, nothing changed with the new policy, except I had an extra few hundred dollars in my wallet after paying.

    • Halo375 on 07/06/2017 - 11:22
      +2

      Nice work bobbified! In the end, all we're battling is the rules of a computer system. We're fighting for what should be right and the poor CSR on the other end of the phone is just pressing buttons on their PC and praying that we'll eventually hang up!

    • [Deactivated] on 07/06/2017 - 12:22
      +1

      After arguing for a while

      Shouldn't waste your time arguing … just find a new insurer.

      • bobbified on 07/06/2017 - 14:35

        Besides this particular incident, my other dealings with AAMI were quite good. I'd made two claims with them prior to this (I was not at fault in both incidents) and, in my opinion, they handled it quite well.

        When buying an insurance policy, most people would look at the price alone and don't really think about the claims handling side of things until it's time to make a claim.
        It is then, that people often realise that the cheapest premium may not be the best.

        • [Deactivated] on 07/06/2017 - 15:21
          +1

          It is then, that people often realise that the cheapest premium may not be the best.

          I doubt it makes that much of difference. You'll find plenty of people complaining all insurance companies- cheap and expensive.

        • bobbified on 07/06/2017 - 19:07
          +1

          @sp00ker:
          If you're buying third party insurance, then cheapest is good.

          There's always complaints about insurance. But we don't know whether they're legitimate complaints or not. (Not reading the PDS and finding out later that something isn't covered isn't what I would consider a legitimate complaint).

          A bigger insurance company isn't as likely to dispute smaller claim amounts than a smaller company. They won't be as particular as the smaller companies who are trying to save money.

        • tomclancy on 07/06/2017 - 21:31
          +1

          @bobbified: Couldn't agree more. A classic example as explained on OzBargain many times is that Budget Direct make not-at-fault customers pay an excess to initiate a claim and then refund that excess if the costs are successfully recovered from the at-fault party. I'm not aware of any other insurer in Australia with that policy.

        • John Kimble on 07/06/2017 - 23:09
          +1

          @tomclancy: Bingle do. But they are a no frills insurance too.

  • AncientWisdom on 07/06/2017 - 12:45

    I wonder if there's room in the market for one of the online comparison websites to run a comparison for you just before your insurance is due so you can decide whether to renew or not based on all the facts…

    • tomclancy on 07/06/2017 - 13:23
      +1

      You mean like iSelect Car Insurance or Compare The Market Car Insurance?

      • AncientWisdom on 07/06/2017 - 13:37

        Yeah, where they will provide a service of sending you quotes for your insurance a couple of weeks before renewal time.

    • Halo375 on 07/06/2017 - 13:52

      It's not a bad idea at all, potentially Ozbargain should have a reminder week once per year with a different reminder each week:

      1. Check your homeloan, here are relevant specials this week
      2. Check your insurance, here are relevant providers offering the top deals.
      3. etc
  • [Deactivated] on 08/06/2017 - 01:01
    +1

    I've been doing this since I got a car. I'm under 25 so my insurance costs a lot and varies in a price a lot, so every 6 months, I requote my policy to see if it's cheaper, if so, I apply for the new one and then cancel the old one. Saved so many $$.

  • driver33b on 08/06/2017 - 11:32
    +1

    Just did 3rd Party Compulsory…CTP, on my 'weekend' car…$346…up $12 on last year, so did a Compare the Market…it was the cheapest by $152…just pays to check every insurance every year ;)

  • Wantone on 09/06/2017 - 12:21

    I find RAA car insurance keep their renewal premiums the same to a requote as a new online customer.

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