Never Auto Renew Your Insurance!

inittobinit on 28/12/2021 - 16:35

Thought i'd share my quick anecdote on how my insurance renewal this year has panned out.

Last year's premium (comprehensive) - $1,100. I had one at-fault accident during this period.

Renewal notice came through, this year's premium - $1,300. Assume its increased due to having to click 'yes' to have you had a prior claim within 3 years.

Before renewing, I run a fresh quote. All the details are the same; except electing for market value (instead of maximum allowed value which was still $5k below market).

Result - $750!!

Do not pay the lazy-man tax with your insurance, click around!

Automotive Car Insurance Insurance

Comments

  • NotAnAudiophile on 28/12/2021 - 16:42
    +32

    i think that's basic knowledge.

    • DoctorCalculon on 28/12/2021 - 19:49

      Pretty much OZB 101 knowledge.

      Budget Direct is notorious for automatically placing your policy into auto-renew mode.

  • Muzeeb on 28/12/2021 - 16:48
    +9

    Please provide coordinates of the rock you have been living under.

    • inittobinit on 28/12/2021 - 17:08
      +17

      25.3444° S, 131.0369° E

      • iNeed2Pee on 28/12/2021 - 17:26
        -1

        I am sure Youi still had a way to connect to that Rock.

      • Muzeeb on 28/12/2021 - 17:32
        +1

        Nice rock

        • bdl on 28/12/2021 - 17:58

          It's probably not insured

      • Pelicannn on 28/12/2021 - 18:08
        -3

        Makes sense. Back in the day you used to be able to go over it. Now you can only go under it if you don’t want to upset anyone.

  • avoidfullprice on 28/12/2021 - 17:03
    +2

    All the details are the same; except electing for market value (instead of maximum allowed value which was still $5k below market).

    Yeah not exactly lazy man tax.

    • inittobinit on 28/12/2021 - 19:33

      Was over $1000 for same:same max agreed value, still a massive saving.

  • Hithere on 28/12/2021 - 18:05
    +1

    Old news. Home and Contents Insurance is the same.

  • inittobinit on 28/12/2021 - 18:19
    +5

    Look, I get that this (should be) common knowledge; I do this every year to squeeze a few dollars.

    This is a near 50% reduction, something ive not seen before so thought i'd share.

  • 87percent on 28/12/2021 - 18:44
    +10

    Not always true

    Got my renewal for AAMI this year, and when I did a new quote (with exactly the same details) it came out to be more than the renewal

    • Muzeeb on 28/12/2021 - 18:56
      +1

      Munted algorithm at AAMI

    • lachhelix on 28/12/2021 - 19:02
      +1

      This is the same for me - for the first time ever!

    • Clear on 29/12/2021 - 08:24

      I had the same issue with Allianz. Everywhere else (even Budget Direct) were far more expensive. Auto renew it is then!

  • FoxJump on 28/12/2021 - 19:02
    +3

    Market value is always cheaper

  • Drifta on 28/12/2021 - 19:16

    Whose your insurer? I need to renew mine and have same quotes as you but without any claims. I'm with Allianz

    • inittobinit on 28/12/2021 - 19:35

      Aimey

      • SBOB on 29/12/2021 - 09:15
        +1

        Knock off insurance for AAMI?

        • inittobinit on 29/12/2021 - 12:14

          Its just as lucky as the real thing I swear!

  • omguleh on 28/12/2021 - 20:36
    +2

    Shop around first. Both my cars were cheaper to auto renew this year than getting new policies.

  • bmerigan on 28/12/2021 - 20:44

    The sentiment is definitely true, but your example is not useful as you're not comparing the same policies.

    • inittobinit on 28/12/2021 - 22:00

      As above i did actually do a like for like. Quote came in at $1000 which is still a significant saving.

  • Ivegottadog on 28/12/2021 - 21:59

    Thanks for posting op

  • meowsers on 28/12/2021 - 22:28

    You can always get a refund within 21 days or even after that a pro-rata refund.

  • Itburns on 29/12/2021 - 09:33

    If it's written off, "market value" is essentially at the insurer's choice….you end up getting a fraction of what it is actually worth - they play hard ball!

  • eddieboy2 on 29/12/2021 - 10:02

    The main thing about any insurance is go with a reputable insurer, who will be there at claim time. The online budget insurers are only interested in you if you don't claim. I recall reading info earlier this year an article where BudgetDirect won't offer renewal if you claim….then you have to find a new insurer when you have a recent claim history. Premium is only one consideration, albeit an important one.

  • OzHunterNSW on 29/12/2021 - 11:41

    No one has been on the roads so all insurances should have at least been halved

  • Peck on 29/12/2021 - 11:42
    +1

    Thanks OP, a good reminder & validation. I do this with reliable insurers. Often my same insurer beats their renewal price.

  • TransportPosters on 30/12/2021 - 11:12

    I found out the same back in Feb:

    https://www.ozbargain.com.au/node/602507

  • popcornready on 30/12/2021 - 13:08

    It certainly is a lazy tax,

    Interesting that insurance companies need to publish your previous yearly rate within the renewal document. This may push more to seek alternate options

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