Comprehensive Car Insurance Renewal Costs

I have a problem than I'm trying to digest.

All things unchanged, my policy renewal is 7.5% more than last year. (A 7yo Hyundai, nothing special in Parramatta, NSW)

From Jan 2019 to the most recent renewal quote I have:

  • Market Value insured. (another year of depreciation)

  • No claims, no existing alterations.

  • Added 2 new policies (Wife's Car + CTP)

Govt charges remain the same, premium + GST make up the bulk of the renewal increase.

Can anyone shed some light on how they may understand this increase? The web chat told me they reevaluate on risk of the area.

To me this suggests, my car's diminished value, loyalty, additional policies are completely offset by whatever this increase is (and then an additional 7.5% on top of that.


  • +3 votes

    Probably due to an increase of claims last year, especially all that hail damage.


      Yeah, I see.

      It's also an global market isn't it.. Maybe other problems have arisen somewhere internationally.


      SO where did all the money go that they were collecting all of the previous years? :)


        Paying out other claims, profit.


          Some things shouldn't be 'for profit'. Water, el;electricity, insurance, banking and religion amongst them. :)


            @EightImmortals: Water sure. Maybe even electricity as it's a basically a necessity. But why insurance and banking? They're businesses. You don't want to pay, you don't have to use them.


              @HighAndDry: But we DO have to use them these days. Especially now that govcorp is trying to make cash illegal so whatever tiny freedoms we still have in that area, we wont have for long. And insurance is pretty much a necessity for anyone who can't afford a third party injury or or property claim.

  • +3 votes

    Maybe you car has entered an age group associated with higher rates of collisions/theft.

  • +2 votes

    Insurance companies have had to pay out a lot recently, they want that money back so everyone's policy goes up a bit. Shop around, loyalty gets you nothing but remember to actually read the PDS so you understand what you're really paying for. All insurers are not equal and price of the policy should be only one factor considered in the decision.

  • +6 votes

    Its called the lazy tax.

    If you switch insurance companies or start a new policy (signup fresh online and cancel your existing policy) you'll always get a better price than a renewal.

    • +1 vote

      I'm appalled that they're so brazen about it.

      • +8 votes

        Insurance, Electricity, Telstra, Foxtel etc all have the same approach.

        The only thing loyalty gets you is an annual price increase.


      i'm with RACT (Tasmania). I let my old policy expire with my new policy kicking in on the same day.

      car: honda jazz 2010, comprehensive insurance with full options.
      old RACT policy renewal: 5% ($40) with significant lower agreed value ($5900 vs $7200)
      new RACT policy: more expensive than old policy by $10 with higher agreed value $8600.

      new customers get the love.

      thank you all the old customers (renewals) who paid for my "discounts"!


    Insurance costs have gone up this year, but they can only charge you when your old agreed price/period is finished ?


    At 7.5% you got off lightly. My old insurer wanted to increase my car insurance by 30% and doubled my household insurance. No claims, no changes to policy etc. Didn't seem to care when I queried it so helped me not care when I changed.


    Older cars are also considered a higher risk of being involved in an accident.

    My insurance went up about 17% last year and when I did a bunch of comparison quotes they were all more expensive across the board.

  • +4 votes

    Lazy tax. Once they hook you they start increasing the premiums. Suggest you shop around.

    There is no sense to a lot of it. When i bought my car new it was $30k cover for $810. For the past 11 years that price has only varied +-$50 despite shopping around for the best deal. Car is now insured for $8k costing $770, I've had 4 different addresses in that time in very different suburbs (Carss Park, Zetland, Yowie Bay, Erskineville).


    From what I have seen in my insuring lifetime renewals always have a lazy tax


    The web chat told me they reevaluate on risk of the area.

    It seems the Suburb you are living in has changed to higher risk area.

    The risk factor of the suburb affects your insurance premium.

  • +2 votes

    I think we are all in the same boat. Getting ripped off by insurers.

    I got tired of it and finally went 3rd Party for my 14yr old Toyota which is worth $6k. There are risk which I accept. If I hit another car, insurance pays them, I bear the cost for my own car. If someone hits me and they have insurance, then I am covered.

    BUT if they don't have insurance, I am pretty much done for. Only recourse is to sue them for damages in civil court. Probably too much money and time to get lawyers involved, and not much in return.

    So please weigh up your risk vs benefit before doing anything.

    Guess what I am saying is Comprehensive has it's place to fully cover you, but if your car is really not worth that much and you feel that you can write it off in a serious accident, then 3rd Party is going to be fine in that scenario.

    Good Luck.


    Probably mostly "Lazy tax".
    They creep up the premium each year and hope that you don't notice.

    Do an online quote through an incognito browser session and see what they quote you as a new customer.


    Try doing a quote with the same insurer from a incognito / private window - for me it came out $35 cheaper with free road side assist package thrown in. I am with AAMI and every year I don't take up quote that they automatically send which is always more than what you can get as a new customer from their site. Sure you will be losing loyalty points and other stuff but as some one else here said, it counts very little when compared to the immediate savings.


    It's called loyalty tax.
    Always shop around every year / every renewal.

  • +1 vote

    Agree with the lazy/loyalty tax. I would also suggest you call up your insurer directly if possible and ask for a better price. Did this recently at renewal and the insurer was able to offer a lower price than a new quote from their website and saved us several hundred dollars.


    Its true, companies claim every area has increased in risk compared to the previous year. MAke me wonder - Has the risk profile of a suburb ever gone down, resulting in a reduced premium?


    Get a quote elsewhere or call your current insurer and beg for a reduction.. even cry a little if you can LOL.

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