Comprehensive Car Insurance

Sterio on 21/02/2019 - 16:13

I own several cars that are all comprehensively insured with different insurers. I have a protected rating 1 and have not had a claim for over 20 years.

In November of last year I had the misfortune of being involved in an accident that was not my fault. Other party was identified, charged etc. The claim was settled by my insurer at no cost to me.

I recently received a renewal for one of my other cars that is insured by a different insurer. With renewal date approaching and with full intention to renew I did the right thing and called them to disclose that I had a not at fault claim in the last year with another insurer. Knowing what insurance companies are like with disclosure, better to be upfront.

What I expected was a thanks and because it was a not at fault claim (third party identified etc.) all good and no impact on the renewal premium. Low and behold, because of this disclosure their system had recalculated my renewal premium resulting in an increase of just under $100. I questioned the increase with the representative but they didn’t budge. Absolute joke. Anyway, I have lodged a dispute so let’s see what happens.

Financial Car Insurance Insurance

Comments

  • John Kimble on 21/02/2019 - 16:16

    Any reason you don't insure them all with the same insurer?

    • Sterio on 21/02/2019 - 16:20
      +6

      Different type of cars (everyday cars and classics). Though it would seem more cost beneficial to go with one insurer, unfortunately this is not the case. There are huge differences in costs.

  • txb on 21/02/2019 - 16:19

    I have thought about the same situation OP has got him/herself into.

    One insurer, Budget, said they would not charge an excess or increase premium based on not at fault.

    As also having a flawless driving record it made more sense raising my excess and installing a dashcam

  • [Deactivated] on 21/02/2019 - 16:37

    If the insurer had to manage a claim (fault or not) they may increase your premiums.

    • MrHyde on 21/02/2019 - 16:39
      +1

      Yes, but this was a different car with a different insurer. they did not have to manage the claim.

      • [Deactivated] on 21/02/2019 - 16:40

        Mmmm. Grey area.

        Would love to hear from people in the industry.

        • bobbified on 21/02/2019 - 17:04
          +2

          What I understand of it is because "not being at fault" legally in an accident doesn't necessarily mean you didn't do anything to increase the risk in the first place.

          That additional risk is nowhere near as much as the person deemed to be legally "at fault", but it's still there.

          Take for example a driver who is involved in a higher-than-average number of rear-enders (as the driver in the front vehicle). They are legally not at-fault, but it means that their driving behaviour is riskier than others (that is, they probably slam their brakes every time they stop).

          Some insurers will absorb that risk by asking "how many at-fault incidents" while others will ask how many claims/incidents, regardless of fault. Or they'll just average out the at-fault and not at-fault risks as a whole.

          A no-fault/recoverable claim doesn't mean the insurer won't lose out. A lot of people don't end up paying and the debt might get sold off for much cheaper. There's also costs to manage the claim itself.

          • [Deactivated] on 21/02/2019 - 17:36
            +1

            @bobbified: Preaching to the choir, brother.

            That's what I thought but this was discussed on OzBargain about a year ago and it was conclusive that the premium does go up (same car same insurer scenario) if you make any claim.

            The logic is that if you make a claim, there is a cost regardless of the insurer having to pay out or not. It is also a reflection of how often, how long, when and where you are and the increase risk of you being in a collision, again at fault or not.

            Having never been at fault and being hit by little old ladies who could have just as easily driven over kids in a forest reserve on the way to the RSL, I don't like this policy but there it is.

            • bobbified on 21/02/2019 - 18:32

              @[Deactivated]:

              That's what I thought but this was discussed on OzBargain about a year ago and it was conclusive that the premium does go up (same car same insurer scenario) if you make any claim.

              Oh, my post above does agree that there's often an increase after a claim. Doesn't it read that way? I was typing on my phone in a packed tram before. I was trying to explain why the premium goes up. haha

              I put the question to the actuaries at the company i used to work at before (because I didnt understand why) and thats the explanation I received.

              The insurance company reps will often deny that the premiums increase due to claims. It almost goes against their no claim bonus marketing. When pressed, the reps will be very vague in their responses or they'll just try to say that it's a general increase across the board.

              • [Deactivated] on 21/02/2019 - 19:00
                +2

                @bobbified:

                The insurance All company reps… will be very vague in their responses or they'll just try to say that it's a general increase across the board.

                I think that's their job description.

                Chapter 1, Section 1
                Subsection 1(A) - reduce the desire of callers to communicate with non-sales team members. Where possible, refer the caller to sales team, otherwise, respond without contributing any information.

    • HeWhoKnows on 22/02/2019 - 09:56
      -5

      NOT CORRECT
      Insurnace costs are based on RISK only.
      Not on whether you made a claim last year.

      • [Deactivated] on 22/02/2019 - 10:00

        'Not at fault' or 'recoverable' claims are those whose costs the insurer can recover from the other driver. This type of claim usually does not reduce your no claim bonus. However, some insurers can increase your premium after you make this type of claim, depending on factors such as the type of car you drive, your age, and whether the cost of claims your insurer has paid during the year has risen.

        Source

        • HeWhoKnows on 22/02/2019 - 11:01
          -1

          Yep. Like i said - based on RISK factors

  • MrHyde on 21/02/2019 - 16:38
    +2

    Shop around - call your other insurers and see what they can do.

  • wizzy on 21/02/2019 - 16:44

    I have found Bingle to be the cheapest comprehensive car insurance. You might be able to get a cheaper premium through them. You have to be ok with buying the insurance online and making all claims online though.

  • yoonibear on 21/02/2019 - 16:46

    Have you tried playing around with those online quote forms? We managed to get just under $100 off my wife's insurance - they weren't able to explain why there was a price difference between the renewal letter and the online quote thing (all variables were the same).

    • bobbified on 21/02/2019 - 16:50
      +4

      This is known thing. Never blindly pay the amount on the renewal notice. The insurers know that a lot of people do just that.

      Always redo the quote online with those same variables. Loyalty doesn't pay with insurance. They give lower prices on new quotes to attract new customers.

    • HeWhoKnows on 22/02/2019 - 10:01

      Online quotes are geared around winning new buisness and not involving any staff.
      Hence I have found that they will ALWAYS be cheaper than the renewal letter unfortunately.
      You would think it be the other way round since retaining good customers is cheaper than winning new business.

  • boomramada on 21/02/2019 - 16:50

    I recently received a renewal for one of my other cars that is insured by a different insurer

    different insurer doesn't mean they are different, mostly likely they all under same parents company.

    • Sterio on 21/02/2019 - 17:27

      In my instance no.

    • HeWhoKnows on 22/02/2019 - 10:36

      Same under-writer??

      Auto & General Services is the biggest car insurance under writer in Australia.
      They under write insurances for: Virgin Money, Budget, 1300 insurnace, ING, Australia Post, Dodo and many more!

      But this doesnt not mean thier prices will be exactly the same as the policies, coverage, options and profit margin will vary from one insurance company to another

  • John Kimble on 21/02/2019 - 17:05
    +1

    Pretty sure some insurers don't care if you're at fault or not (they specifically say so when you are filling out the online quote), you/they just put how many claims you've made in the last x years into their "magical premium calculator" and it spits out a number.

    You would think you could escalate and reason with a person to overturn it based on logic or loyalty reasons, but who knows with insurance companies…they're not in the business to make friends.

  • Sterio on 21/02/2019 - 17:31
    +2

    Absolutely correct. It could well be that after sending the renewal notice, there has been a rise in premiums. Thus the magical premium calculator has now used the new rates. Who knows? What I do know is that it is bs.

  • AdosHouse on 21/02/2019 - 18:16

    OP, every year I renewed with RACQ on my Commodore, it was about $80 higher. Just go online, did a new quote, and it would only be about $10 higher, with I put down to inflation.

  • Ocker on 21/02/2019 - 18:57

    Involved in an accident and make a claim, whether your fault or not, IT WILL increase your premium.
    I was stationary, waiting to make a RH turn (with indicators on and foot on brake pedal) and got rear ended, big time. Although I made claim directly on the other party insurer, I made the mistake of letting my insurance company know. Next renewal as $350 more expensive.

  • carlJack on 21/02/2019 - 19:02
    +1

    Shop around mate. You will get a better deal.

  • bloom on 21/02/2019 - 20:22
    +1

    Try progressive direct multi car policy
    Single car the price wasn't anything great, soon as I added the wife's it was a bargain.

    Hyundai i30 and Sante Fe <1k annually

  • Ughhh on 21/02/2019 - 20:38
    -1

    Winning a 'not at fault' claim doesn't mean you're a safe driver. You could be the type of driver that panics and slams on the brakes for every little thing, sure the car behind will be deemed at fault, but your actions did somewhat contribute to the accident, hence still a risk to insure.

  • backpaqer on 22/02/2019 - 09:46
    +1

    Royal commission!

  • HeWhoKnows on 22/02/2019 - 09:54

    Get a quote from another insurer.
    They are always hungry for business and will see such claims the same way you do.
    Furthermore
    Quite often insurers will offer a discount of 10-15% if you have 2 or more policies with them.
    So that is worth a try as well

  • [Deactivated] on 22/02/2019 - 10:06

    Things have changed recently. My insurer explained that they have changed from a 'no claims' to a 'no incidents' system, so even if you are not a fault you will still end up paying more.
    If you don't report incidents you breach the terms of your policy and they can refuse to pay future claims.

    • HeWhoKnows on 22/02/2019 - 10:38

      I believe their definition of "incidents" is very broad and would include traffic infringement notices.

      • [Deactivated] on 22/02/2019 - 12:36

        Yep-spot on

  • HeWhoKnows on 22/02/2019 - 11:08
    -2

    I have found time and time again that the Best place to compare car insurance quotes is right here:
    https://www.comparethemarket.com.au/car-insurance/

  • kokopop on 22/02/2019 - 15:05

    I had only 3rd Party when I was hit from behind while stopped at red light. Other party’s insurance paid me out. But I never informed my insurance company (which was different from other person’s). This was almost 2 years ago now. Should I tell them now?

  • Noblejoker on 23/02/2019 - 12:13

    Work in the industry and can say - this is BS
    Not at fault claim should not effect future renewal with either company but especially the one that didn't pay
    Did you get a renewal offer from them first, then disclose accident and then they put it up?
    If so I believe they should honour the first offer and likely will after your complaint is heard
    If they didn't offer first then it is possible that the price just went up $100 this year - although I guess they were arguing with you
    Either way - find an insurer who you can speak to and build a relationship with - not a call centre who will deny and talk BS
    If you have this trouble now imagine the hassle if you ever claim!

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