Car insurance premium rise in 2018?

Hello Ozbargainers.

Last year my car insurance premium was just under $600, this year, renewal came, and the new premium is almost $1300.

I had one claim, where I was rear ended.
Which my dash cam proved was not my fault. So it should not affect my premium.

I had quote from AAMI, RACV, Allianz, Coles, Suncorp, and all the premium is between $1300 to $1500.

Anybody had any idea why car insurance premium rise this much this year?

Comments

  •  

    Mine has stayed the same. I know some insurers count a claim as a claim (whether at fault or not). Best bet is to work with the others parties insurer and not claim on your (some insurance companies).
    Also you need to work out what changed. Normally a claim doesn't put it up that much. double check if you have an under 25 exclusion etc.

    Also AAMI / GIO / Suncorp are pretty much one company (same underwritter)
    NRMA(RACV) / Coles are in the other boat underwritten by NRMA.

    A Little research and you'll find other companies outside the 2 major ones. Also read product reviews on Coles Insurance before thinking of going with them. They are pretty shocking (in mine and many others experience). It took me 6 months to get a payout for a not at fault crash (ended up going under other parties and taking alittle less cash). Coles are useless and FOS is useless to act (in short term).

    I'm 31 and found Woolworths to be the cheapest. Just hope I don't crash, they seem to suck similar to coles with customer ratings

  • +1 vote

    So it should not affect my premium.

    says who?

    •  

      Well, the OP stated that they were rear-ended.
      So it is not their fault ..
      So why now are the insurance companies are punishing customers for a not at fault claim?
      Many years ago …. a not at fault claim was a given that a premium will not "sky rocket"
      Another crappy algorithm that insurance companies play with now to claw more money.

      Example: AAMI home insurance quote using the same structure of my house … garage … bedrooms … etc by entering my address vs neighours (i.e. 1.4m away) was $300 cheaper next door.
      I asked them to explain why?? They had NFI!!!! …. highway robbery!

      I can't wait until self-driving cars are common place … well if I am still alive by then.

      You would assume that accidents will drop considering the car will "make decisions" and communicate with others on the road.
      Will the insurance premiums drop??? Never!

  • -3 votes

    When you have a not at fault claim there is still hundreds of dollars of costs that can't be recovered from the other party. Answering your call, sending out assessor, approving claim. This is not paid by the other party they only pay for your vehicle damage

    • +2 votes

      Who cares?

      That's why it's called 'insurance', if they are going to happily accept our payments for hundreds of dollars a hear (or more) for years and years without any claims and then jack up the premiums the second a claim is made then we need to have a government enquiry into the insurance industry. Of course there may me more to the story that what the OP has said?

      Also I discovered that yearly premiums are automatically jacked up by the computer and that can usually be sorted out with a phone call to your insurer.

      •  

        then we need to have a government enquiry into the insurance industry

        Agree!

        Time to have a Royal Commission on greedy Insurance Companies.

        Cheers

        • +2 votes

          We don’t need a royal commission on everything. They simply wouldn’t even be necessary if the regulators were doing something useful. We need to ask why the regulators are habitually failing to do their job such that these royal commissions are even considered. Why is no-one asking ASIC how they completely failed to deal with the stuff uncovered in the banking enquiry?

        •  

          @kipps:

          They simply wouldn’t even be necessary if the regulators were doing something useful.

          You have hit the nail on the head! In my view, they all sleep with each other to ensure that they are employed.

          Cheers

        • +1 vote

          @kipps:

          We don’t need a royal commission on everything. They simply wouldn’t even be necessary if the regulators were doing something useful.

          We need a royal commission on the regulators.

    •  

      Not sure why I have been negged, my statement was true. Those costs do exist and are not paid by the other party

      •  

        Those costs exist but would be expected to be rather consistent year on year. They do not explain the wild fluctuations of yearly premiums, and are very much a cost of doing business as an insurer. The insurers are gouging and seeking to profit from those who just pay the renewal notice each year without questioning it.

  •  

    Could be a number of things - but that claim def sounds like it could be one of the reasons. Could also be crime in the area, more people in the area making claims ..etc.. Father in law's premium jumped up by about 500 because his car was stolen, but definitely shop around - we were able to knock off a few hundred off his insurance when we went w/ a seniors insurance company

    Have you tried budget direct or the cheaper alternatives?

  • +1 vote

    Anybody had any idea why car insurance premium rise this much this year?

    This happens all the time.
    In my view, it is a law of averages; like lottery and your the lucky customer that has been chosen to pay/offset for others that claim hence make their business so lucrative.

    … i mean you have a "no fault" claim.

    Time to give them the boot and find another.

    Simple!

    I had quote from AAMI, RACV, Allianz, Coles, Suncorp, and all the premium is between $1300 to $1500.

    Btw, do me a favour, with AAMI online quote… get a quote for your car and place your address first and then change it to your neighbours address. See if the quote changes ..

    Cheers

    •  

      Thank you, I will try this.

      Edit: It did work, returned result reduced to $800.

      • +1 vote

        Wow! .. a minimum $500 savings!!!

        Now get the QTE number and call AAMI.
        Ask them why is it significantly cheaper.
        Hopefully, they will honour you the difference.
        It happened to me!

        Good luck

        Cheers

        Edit: From my experience, only AAMI is address specific. That is, if you place your insurance credentials online for a quote, and then change your address to across the road or next door, it can be a big difference in the quote. In my view, it is blatantly unfair and unjust. I also believe in my view that this is a "correction algorithm" that they use to make sure their coffers are always profitable. Many other insurance companies are suburb specific.

        How can they justify a $500 decrease next door if your car & home specifics that you have placed into the quote are the "same" assuming your driving history etc is good?

        However, if you get honoured by the cheapest quote with the same level of cover, then it is worth it.

  • +1 vote

    I’m with RACQ - they increased my premium by 10% for no reason (no claim made against the policy). I just rang and magically it reverted back to my previous 12 month premium.

    Begs the question as to how they do their price hikes, esp on the basis that your value declines annually on the car.

    • +1 vote

      I just rang and magically it reverted back to my previous 12 month premium

      Yep. That's the modern society we live in now. You have to do all the walking/talking to get a better deal … as their shareholders hope that you suffer from memory loss, conjunctivitis or laziness.

      Cheers

  •  

    Anybody had any idea why car insurance premium rise this much this year?

    Just look at the number of OzBargain posts where people have had an accidents and are uninsured.

  •  

    All insurnace companies put up thier premiums every year.
    Its thier way of saying "thank you" for your business.

    So every year need to go to https://www.comparethemarket.com.au/car-insurance/ or some other insurannce comparison web site, plug in your details to find the best deal going.

    Its your way of saying thank you but "no thanks"

    When you get a better deal you can always go back to your insurance company and ask them to match it or at least come close.

    Otherwise just go with the best deal

    •  

      Those comparison sites charge a substantial fee to the insurers which is increasing their costs leading to higher premiums

      •  

        They are awful. They only show limited offerings on the market and are incentivised to sell those that make them the most $$

  • +1 vote

    I heard it’s because even if it’s not your fault, your’re still marked as high risk (for attracting bad drivers? Lol).
    I usually just get a new quote every year since new customer discount is greater than loyalty.

    • +1 vote

      This. AAMI wanted to sting $800 for renewal. Exact policy quoted for new customer was far cheaper. Down to $600 with NRMA for substantially similar cover. Loyalty means nothing to insurers but the opportunity to gouge. Much like electricity.

  • -2 votes

    Premiums rise due to whatever natural disaster happens in Queensland and the residents there claim. The rest of the nation pulls their weight.

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