What's the highest "loyalty tax" you've ever paid on insurance?

The old trick back in the day was to increase premiums by an inconspicuous amount like $12. Over thousands of policyholders that could add up to a lot of free money. But I swear insurers aren't even trying these days. I think they realised everyone caught on so they just go all out in the hope that 1 person won't see their $400 enewal increase.

I just got a renewal letter which is $650 more expensive than last year, despite the facr that the driver is older and the car is worth even less.

A friend of mine got a $1200 increase one year. I think that's the record. Anyone ever seen higher?

EDIT - yes I drive a Mustang. Ho ha etc.


  • I got a $140 increase on my comprehensive car policy (haven’t had any claims) was spitting chips. I got a comparable quote from another company that was over $200 cheaper. Annoying that they do this making you have to spend the time getting quotes etc. I suppose enough people just pay the tax that it’s worth their while doing it.

  • $650 more expensive than last year… A friend of mine got a $1200 increase one year…

    That's now how you calculate loyalty tax.

    If every other renewal option cost just as much as the increase, then there hasn't been a loyalty tax.

    • Damn, maybe they have a mid life crisis algorithm added in some calculations.

      Pretty sure there is a higher risk on 25-30 than 18-25 due to accidents.

  • Zero - I was not born yesterday and don't fall for the oldest con in the book

  • My Bingle renewal quote came in $180 cheaper than last year when renewed in June 2020. Shopping around, it was several $100 cheaper than elsewhere.

    Just got to try extra hard to avoid having an accident as I hear their customer service is terrible

    • Sorry but in that case what's the point in even having insurance..?

      • Perhaps the tongue in cheek nature wasn't all that obvious
        In the event that I crash into a Ferrari and then its definitely worth dealing with crappy customer service to avoid bankruptcy….
        If they were truly impossible to deal with then I guess they wouldn't be allowed to trade

  • Perhaps it's a matter of perception? New customer policies might have an upfront discount applied, to gain the business, but subsequent years don't. This happens in lots of industries (Eg mobile phones, utilities, etc), but the insurance companies are less opaque about their pricing.

  • Its not just insurance, I found out I've been paying one on my gas bills (cylinders - tanker refill) for years.
    I had run out of gas and had to get a complete refill of my gas cylinders rather than a top up and was shocked the cost was many hundreds of dollars (as they normally just do a bit at a time regularly). It became apparent they were empty because of a leak and so they cut me off / barred any deliveries until I got a new gas safety certificate.
    So during the repair, by chance the topic of new exchange cylinders came up in a discussion, and I checked on the cost of two whole new full cylinders under exchange with the same company - a nice neat comparison - that's when I found out I was paying way more (from memory I think almost double) for my gas by tanker top up! When I gave my details and they realised I was a previous/existing tanker fill customer, for a moment the salesperson resisted swapping the mode, and so I pushed back and said no - I was cut off, now I setting up again and choosing exchange cylinders instead or otherwise I'll get them from someone else! It worked and I'm still paying less over a year later.

    That's what 10 years of loyalty without questioning it gets you!

  • $450 insurance renewal. I went back to the web site, put the exact same details in, and got a price of $303. Percentage wise that's an enormous difference.

    • Is that TTP or Comprehensive?

      • I don't think there is any comprehensive at that price, even if your agreed value is 0.

        • My policy with Allianz

          Comprehensive Insurance
          Agreed Value: $7,350
          Basic Excess: $900
          Annual Premium $430

          Saved like 20 or 40 bucks, I don't remember, by reapplying rather than simply accepting their renewal price.

  • We just moved into a new house. Always had insurance.
    RACV quoted $4200 home and contents.
    AAMI was around $1400
    Budget direct (who I will NEVER go with again) was $650
    Ended up with seniors at $1100.

    The biggest one I've had was AAMI, went from $650 to $1100. This was just after the floods in QLD.

    • What happened with budget direct ?

      • Do a search here on my username .
        My daughter on her L's had an accident, BD refused to reinsure (which is ok), but then sent me a letter saying I had been refused insurance. This affects getting insurance from other companies. Had to do a lot of explaining….

        • That should be quite easy to explain when you sign up for a new policy.

          Don't let it bother you since there's absolutely no benefit of getting in good with insurance companies. Things like no-claim bonuses are just a scam. The insurance companies don't value you or your personal circumstances so don't let their opinion bother you.

  • Interestingly, for the last few years, when I've compared quotes to an online quote with the same company, I've found my renewal notice is cheaper. I've ended up staying put after comparing with 4 other insurers.

  • Surprisingly, my comprehensive insurance renewal was cheaper than new quote with same insurer, and only a tad more than other (budget) insurers.

  • About 10yrs ago I had $1800 increase when I was with Swann insurance and when I called to enquire it, they said it was due to a claim made (which was proven to be the persons fault by witnesses and police).

    I changed to you and went from paying a yearly $1200 to $800 premium.