I've read about how some insurers impose a lazy tax on existing customers when it comes to renewal time, so when my RAC comprehensive car insurance renewal came in at ~$800, I thought I'd do a new online quote for comparison.
New quote, stating I'm a RAC Red Member: ~$600
New quote, not stating I'm a RAC Member: ~$500
Same agreed value, same excess, same no claims bonus protection.
Stay woke.
Except, I like the RAC. Excellent service in the past 5 years (and 2 not-at-fault claims) that I've been with them. I also like that they're a mutual that underwrites their own motor vehicle insurance policies, so no profit-seeking shareholders to serve.
There used to be a few insurers that advertised price matching or price beating by $xx (including Coles and NRMA) but I have not seen any lately.
I have same issue with Allianz for last 10 years. Every year their renewal cost is approx $200 more than previous year. I do three new online quotes (one from Allianz), call them and negotiate. So far they have been able to price match every year with the cheapest one. So call RAC and see if they price match.
One interesting thing I found this year from Allianz - How car driven in kms per year impact the insurance. i always use 10000 kms per year for car insurance. For renewals Allianz use risk analysis of 10000 kms per year while for new customers, then do risk analysis per day 10000kms/365 days (km per day). On paper it should be same but the quote difference was $120.
AAMI used to do this and I always went with a new policy each year - i think they had $100 off new policy bonus or something along those lines, until my last renewal where the renewal was actually cheaper. Its good to check both renewal and new policy each time.
Make sure it's a comparable excess. But yes, some insurers will charge existing customers more. It's why you always need to compare (plus against your current insurer).
Just doing my RAC renewal today.
I'm still seeing a similar issue to above, a fresh quote is more than my renewal with all the same details. This is excluding the first year online discount of $100.
Speaking off the first year online discount, what's stopping me from just getting a new quote and starting a new policy rather than renewing the old one so I can get the $100 discount? Anyone tried this?
Yeah and then use this cheaper quote to price match with another provider to get best deal.