Staying with Same Insurance Company but Signing up for a New Policy Rather than Renewing

Hi all,

Insurance renewal time for me, I've been sent a quote 7% higher than last year despite a discount for a year of no claims.

The quote is for a renewal, however when I put in the same details on their homepage (AAMI) the price comes down over $100 dollars for the exact same policy, although it actually gives me more KMs to drive per year.

I'm just wondering if I cancel my current policy can I avail of the policy as if I was a new customer and take advantage of a much lower rate? It did ask who my current insurer is and I can't find anything to say this is just for new policy holders.


  • +38

    Ring them up. They will price match it. If not, switch to a different insurer.

    • +13

      Keep the quote details, but call them up and get them to do a quote for you as well. I did this last month, and the quote I did with them on the phone, came in about $300 cheaper!

      The guy couldn’t explain why it was so much cheaper, but he confirmed all my answers were the same as my previous quote

      (I’m also with AAMI)

    • +9

      I did this with AAMI a few years ago and the bloke wouldn't price match and told me to just buy the new policy online.

      • +1

        yeh same, had to may a new policy, such a joke

      • Same.. they had zero interest in it

    • +6

      I’ve had the same as JIMBO. AAMI gives a discount for new policies done online, but not for renewals. I’ve called up and asked for the discount, and was advised to take out a new policy. They can apply the online discount to a new over-the-phone policy, but not to an online (or over phone) renewal … it’s all a bit silly.

    • Exactly

    • Just about all new online insurance policies have a 10% discount

      So it pays to sign up for a new policy every year
      But as others have said - just call them up
      It works for me

    • +2

      I do this ever year with my insurers. Otherwise you're paying a significant lazy tax.

      • +2

        aka the loyalty tax

        companies tend to spend more money chasing new customers while ignoring existing ones

        like the classic successful restaurant for many years, finally handed over to the children to run

        who aren't really interested/committed/personally invested in the restaurant

        and are mostly interested in maximising the money they can take out for their new BMWs, etc.

        so - they raise the prices, kick out the old chef and bring in cheaper untrained cooks,

        and reduce the quality of the raw materials - y'know, so we can make more profit

        long term loyal customers notice the change and decide they don't want to pay more for worse food

        so stop coming, and tell their friends about it

        so in 6 months the young experts are sitting in an empty restaurant looking at spreadsheets on their laptop wondering why they're looking at bankruptcy

        while all those customers who used to eat there regularly walk past, remembering how good it used to be …

        • +1

          Username checks out

  • +19

    My household does this every year with our insurances.

    Welcome to the savers club OP.

    • +2

      Same here. We had been loyal customers of Aaaaaa …; but received higher renewals each year through our email. So we suggest that you always go online every year for a new quote, (which is usually at least $50 lower). We don't even deny being a current customer!

      • I always spend 20 minutes cross-checking insurance quotes from various companies

        and typically save at least $100 if not $200 on the renewal premium

  • +6

    that is what your supposed to do for every insurance renewals… get a better deal then stay on and get stung

  • +2

    I'm also with AAMI and do this every year, get an online quote and when it's cheaper than the policy renewal I phone them and they always match or even beat it.

    • +2

      I find it's rarely cheaper (for the last few years).

    • +1

      I do similar every year with AAMI. Except I just go ahead and sign up for the new policy online. Saved $150 this year rather than just going with the renewal notice I was emailed. Their safe driver rewards are BS.

    • Yes me too.
      Just sign up with the new one and let the old one lapse.
      If you call them up later, they will link the new policy to your account (so it shows up in the online portal and all your claims/history is still in one place).

      Last year I decided to go with with Woolworths Insurance, and while they were very cheap, I had one at fault claim (hit a roo) and they declined to renew my policy. Bunch of tossers.
      Then when I went to get from other companies quotes and they ask the question "have you ever been refused insurance" I had to answer yes. This led most of the companies refusing to issue a quote online, and have to call them and explain.

      Went back to AAMI this year - more expensive but at least I don't have to put up with that nonsense.

      • Ahh I had the same thing with WW Insurance. I rang and asked them why the policy couldn't be renewed. They put me on hold for ages and said it was because the vehicle description had changed on their system. I had a sun shade fall onto my car during a storm. They ended up letting me take out a new policy that went from $63.39 a month to the new policy over $91.00 a months because I have one claim against my name. I just did the shop around and the only company that had a good price was Bupa. they said that the storm damage is not my fault and would honour the no claim bonus. WW were excellent with the insurance claim. Plus I get the 10% off my big shop once a month. I guess I get the extra I pay back on my shopping.

        • Yes just to clarify, they were actually really good to deal with during the claim.

          It's just the refusal to renew once I made a claim that ticks me off.
          Basically what they are doing is just taking on low risk customers; as soon as you cost them any money they will ditch you.
          I suppose as a business it's their prerogative, but as a customer it creates further ramifications when trying to get insurance in future.

          I would have been happy if they had just increased my premiums exorbitantly the next year (forcing me to move on) instead of flat our refusing to renew.

          • @cuteseal: Yeah I agree. The claim process was so easy and straight forward. Their communication was great via the emails and videos. I might do the thing where I take out a new poliy. I just read the fine print for the price beat guarantee and they wont match the Drive Less, pay Less policy

  • +7

    Yes I do this with QBE every year. The renewal letter they send is more expensive than a new quote with them so I disabled auto-renew and just do that. I don’t bother calling to price match and just do a new policy.

    Insurance companies prey on you not realising or being bothered to check to make some extra money.

  • +2

    This happens to everyone, this topic gets posted on here every 3 months.

  • +1


  • +9

    Welcome to the disloyalty club. We hope you don't stay.

  • +2

    Timely post
    I just received email notification that two of our car insurance policies with RACV are up for renewal.

    Car 1 is a CX5
    RACV $1,127
    AAMI $810

    Car 2 is Hyundai Kona
    RACV $808
    AAMI $394

    Identical excess', sum insured etc.

    • For the Kona, is that comprehensive?

      • Sure is - for market value

        • +1

          I was concerned by market value. I didn’t like not knowing how much they would insure my vehicle for.

    • You can usually get your RACV renewal reduced by $100-200 by calling up.

    • It's ridiculous how much variation there is. Mine ranged from $1200 to $700.

    • +1

      Not all insurers are equal. I have had multiple awful experiences wiht AAMI getting my car repaired. They have huge assessment centres then farm out the work to the lowest tenderer - closest assessment centre was 30 mins from my house. The whole thing was a fiasco - very time consuming and frustrating - repair work was substandard and had to be redone.

      I now use NRMA which by comparison is a very simple process - you lodge a claim, then take it to any authorised NRMA repair shop of your chosing. The repair shop take photos and do an online assessment for NRMA, then book in the work.

      Edit: point of story is to understand the claim process with your insurer andif you can choose where it gets repaired. One bad experience with AAMI and having no car for several months while they stuff you around at every turn is enough for me to just stick to NRMA - my time is far more valuable.

  • +3

    I'm just wondering if I cancel my current policy can I avail of the policy as if I was a new customer and take advantage of a much lower rate?

    No need to 'cancel' if you don't pay the renewal the policy is cancelled.

    Just take a new policy and make sure there is no gaps in the coverage.

  • +5

    One time I did an online quote, then decided to call as there was a banner that said "call for best price", I think it was Allianz. So the guy goes through all the stuff then gives me a price that was $70+ over online price. I said nah, I did an online quote and it was cheaper, did you want to match it. He went off at me, said I wasted his time and literally waited for a response when he asked me "why didn't you say you had an online quote". I was pretty floored with the unprofessionalism and obviously I wanted to see what the best price was instead of him just matching it. Haven't gone back to them after that. Fk dealing with people.

    • +5

      From me, as someone who works in the industry, that’s disgusting customer service behaviour. I do hope you either wished to escalate the call or call back to complain about the service provided.

      My response to you telling me you did an online quote would be:
      “Ok, thanks for telling me. I’ll have a look to see if there’s anything further I can do, but please let us know at the start of the call you’ve done an online quote and provide the quote number as we need to check everything is correct, which takes time.”

      Guess I care about my customers more overall 🤷🏻‍♂️

  • Done this with aami before

    Yeah it works

  • Fo those just taking a new policy with the same insurer How do you all get around the name of your previous insurer and no claim bonus?

    Every policy I know will decline to quote if you already have cover with them.

    • +1

      AAMI doesn't for car. YouI did for home.

  • +1

    Every year when my renewal is due I always do a price comparison and if the offer is better I just tell them I don't want to renew and buy the new policy on line

  • +6

    Be careful about talking to your insurance company about their ever increasing policies with ever decreasing benefits. I was with one company for seven years and lazily renewed but called them several times at renewal time as premiums increased and they changed some of my settings to reduce the price a little but ultimately the cycle continued. This year I went to the market to compare and got a policy with a different company with lower excess, higher agreed value of my car and a premium that was just over half the cost of the one I had. It does pay to shop around. When I rang up to cancel my old policy they went on and on about how they could have done a better job to which my reply was - but you didn’t. It’s all a scam once they have you hooked. I will be doing the same thing every year from now.

    • +2

      I switch between insurers every year or two because of this. I've been through Alianz, AAMI, and Suncorp the last three years. I've been through AAMI and Suncorp for my bike. Basically you save a few hundred dollars every year just by doing a quote with the few cheapest insurers.

  • I've had this happen numerous times in the past. Although I can do the same price with a new policy, out of principle I will go with another company.

  • +2

    At the end of day, everything boils down to 2 things when it comes to renewals:
    1. Always compare each renewal, not just only to see if you could get a better deal, but also to see if you’re actually getting the best deal! (This year nothing compared cheaper to my renewal and I felt proud in my decision!)
    2. But do make sure if you change insurers, you are getting comparable cover and no nasty surprises at claim time (skim read PDS).

  • +2

    My policy went up approximately $150 this year compared to last for absolutely no indicated or specified reason , The only thing that changed was i simply got 1 year older , other then that all other details remained the same and 0 claims

    I shopped around and other Insurers wanted a good $500-600 more for basically the same coverage and i was like F that

    I ended up just increasing my excess in an at-fault scenario by another $200 ish dollars and then it brought the policy to $100 cheaper then even the year before.

    At the end of the day you have to choose things best based on your own personal circumstance but the best way to save hundreds is just to up your excess and be a responsible driver , in reality your excess is waived if you can prove someone else damaged your car and you can acquire those important details and usually with a hardwired dash-cam this is often a huge possibility even if its a hit and run.

  • Insurance companies love those who just pay the renewal without looking around

    Just take out a new policy you should still get the discount

  • +1

    Renewing is called the lazy tax -

    Insurers value switching, not loyalty.

  • -1

    I was on the same boat OP and ended up just buying a new policy with AAMI.

  • -1

    AAMI car policy was due for renewal yesterday. Ran through a new AAMI online quote, increased agreed value by $1500 and it was still almost $200 cheaper than the renewal quote. Started an online chat and the operator offered to cancel my existing policy immediately and actively encouraged me to take out the new online quote. Whole process took less than 5 minutes.

  • +2

    Been doing this for years with AAMI (start fresh and let the old one lapse). I think this year they finally caught on and somehow the quote I received online was more expensive if I select AAMI as my current insurer vs if I select any other insurer. I was worried they may not payout if they deem that I 'lied' on the application form so I simply changed to another insurer which was cheaper for new customers. Next year I might return to AAMI as a new customer. Basically as everyone probably already said, there is no incentive to be a loyal customer. Just churn and burn.

    • no incentive to be a loyal customer.

      I dont many KMs, especially during Covid lockdowns.

      I have a limited kilometre policy. It is cheaper generally but also the KM allowance rolls over if I don't use it all. So one year I get a 10,000km policy, only use 7,000km and the next year I get a 5,000km policy.

      Part of the reason I have stayed with the same company the last few renewals is this policy of rolling over km allowance.

      • Which company provides a limited km policy?

        • I have one with GIO.

  • -1

    Same thing with AAMI, the increase was 17% over last years premium. I contacted them as the online price was cheaper than what I pay now and much cheaper than the renewal price. The conversation went a little like this:

    ME: I've just got a renewal for $79 per month but the website has it at $55 per month and 12 months free roadside for identical coverage and other insurers can offer me cheaper coverage than this renewal price. Can you match that price? (don't worry about the roadside).

    AAMI: Let me see what we can do for you…..Okay we can reduce your policy to $75 per month on the renewal if you like?

    ME: Well the website is much cheaper, couldn't I just cancel my policy and start again as a new customer?

    AAMI: Yeah if you want….

  • +1

    I've been a loyal AAMI customer for decades, and about 10 years ago the penny dropped and I realised I've been a fool and started shopping around.

    I'm currently with Coles Insurance with maximum excess and loving it. A recent claim went very smoothly, with the lady from the call centre being super helpful and even genuinely concerned for our safety.

  • Saved $300 recently by switching home & content…

    Called to cancel, they tried to talk me out of it by reducing it by $250, but decided to save the extra $50 and switch anyway…

    Policy coverage was exactly the same…

    • +2

      This isn't an accident. Half the insurers are underwritten by the same big financiers and I think they just sell them a package. The retailer might tweak it a few dollars here or there, but it's pretty much always the same across the cheap brands.

  • Occasionally, the Policy start date will also have a huge impact on the cost of the Policy. It may be beneficial to start a new policy a few days or a week earlier than your current Policy end date, as you may save hundreds of dollars. I've seen it before where from one day to the next, the cost increased a few hundred dollars!

  • -1

    I call them up and ask them to cancel because it's cheaper elsewhere. They will always beat the quote.

  • +1

    For me CTP insurance is the opposite. Every year I try to shop around but it seems to be more than the renewal. So I continue renewal.

  • Personally I am now of the mindset to punish insurance providers that try to take advantage of loyalty. If they go more expensive than their new policies I switch to someone else, screw giving them a chance to match.

  • -1

    much better call them mate then new cover they know now 5% up max and i am going check market

  • +1

    There is no need to cancel, just let it lapse by not paying the renewal (I never have auto renewal on).
    I chop and change every year.
    If the current policy says insured until 4pm on the 1st March I will take out the new policy starting on the 1st March if its the same company or someone else.

    • +1

      Quite a few of them have terms that unless you cancel you are automatically renewed with the same payment method.

      • +1

        Can confirm , Once i've logged into my account from my Insurer i can see the auto-renewal (which i didn't actually approve) and there isn't any button to cancel the auto renew at all you have to Call them up directly to cancel.

        Anyone on this thread needs to double check to see if they can cancel it themselves via their online portal (if applicable) otherwise you will have to call up to cancel or go through live chat.

        At least in my case I have noticed Insurers are now automatically setting "auto renew" as part of their terms and conditions whereby before they didn't

        So clearly they are aware loyalty doesn't pay anymore and they are losing customers so what better way to keep them , make it more difficult for them to leave (by setting auto renew on every policy by default forcing the customer to call up)

        Absolute dogshit , shop around every year and force them to give you a better price if they want your custom.

        • +1

          yep, exactly what I found with my house insurance last year. luckily I caught it before they took an automatic payment. Thankfully I have gotten good at dealing with insurance now, I switch both cars/house and contents insurance almost every year. 10 years ago I was very lax and would just renew with AAMI but then realised how much they were screwing me over it got me to change my ways. Only one I don't change is health insurance as it is partly subsidised through work and the extra difficulty of getting that changed at work, but I am close to doing that one too now after the last few rises.

  • I started a thread about new policy quotes vs. renewals being cheaper last year. Since then I've noticed it's a frequent topic which comes up on OzBargain so I was just another one who rediscovered this way of marketing too.

    We recently discovered our house insurance is $600 cheaper with Budget Direct compared to renewing with Youi, but that's only because they are offering a 30% discount for the first year, then it goes up to full price. Still a few dollars saved for one year at least.

    I like Hangryuman's example of the restaurant. Explains a lot about that kind of thing.

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