Sunday, Feb 14, 2016 at 09:23
Out of interest I obtained a quotation from Club 4X4, ensuring it was on a like-for-like basis with the current policy I have with a mainstream underwriter that is arranged by a broker.
The question I often “grapple” with when reviewing the cost of insurance is whether cheaper is better.
For sure, it puts more money in your pocket and if you are willing to
shop around at each renewal it might add up to a reasonable sum over time.
The price of the Club 4X4 policy versus my current arrangement is certainly cheaper by a reasonable factor.
Price should only be one factor in taking out a policy and a thorough read of the PDS document should be undertaken to ensure the policy will meet your insurance requirements. All too often I suspect many, but not all, simply assume what they are covered for, rather than confirm via the PDS what they are in fact covered for.
The Club 4X4 PDS has a clause that may give cause for concern to some and I highlighted that earlier in this thread. It is something that may cause additional expense prior to knowing whether the underwriter will pay a claim.
One concern that is worthy of consideration is when policies are designed around a specific target market (4WD for example) are you prone to being exposed to them pulling out of this market segment at sometime in the future due to a high level of claims?
Is it a case of getting what you pay for?
And that isn’t to suggest that the Club 4X4 offering is not a good one.
The question is what risks, which may no be readily be evident, are policy holdings taking in return for a considerable reduction in premium?
Not so much in terms of the defined risk, these are clearly laid out in the PDS, but service levels and the ease of claims processing.
My insurance cover with a mainstream insurer is a comprehensive policy covering me anywhere (and read anywhere) in Australia where I am legally entitled to be. I am covered for the costs of my modifications and accessories, all noted on the policy and including a performance chip, GVM upgrade, non-standard fuel tanks and a rear axle modification.
That should not come as a surprise given most policies are broadly the same in the way they define things. So whilst the Club 4X4 policy is “billed” as a policy for four-wheel drivers, it isn’t especially different from most mainstream underwriters policy offerings.
The Club 4X4 policy does come with the option to purchase cover for remote area recovery due to a
breakdown as distinct from an accident or damage, and the policy in its basic form has $1,500 of this cover available.
Whilst appearing attractive, I suspect it won’t have broad application as if truly remote a recovery might be academic at any price depending on the location. If on a gazetted road the policy has the normal tow options covered.
And also, there is some additional coverage for personal effects, which some may find useful. Mind you, many
home content policies will cover you for personal effects when “Out and About” in any case.
Without doubt, my own research indicates this is a policy offering that will save you on premiums and worthy of a look for those who are budget conscious, but as always, do your own due diligence on whether it is suitable for your needs.
Cheers, Baz – The Landy
AnswerID:
596215
Follow Up By: Club 4x4 Pty Ltd - Monday, Feb 15, 2016 at 20:33
Monday, Feb 15, 2016 at 20:33
Hi Barry,
Glad the team came back to you with a quote and you found our premium to be competitive.
I think i've answered all of the concerns put forward thus far in the thread.
The question mark you portray around premium is a real one. As a customer of an insurance company i always have the same mental battle, but as an enthusiast there are certain things that are more important to me as an individual than price. But then there are other things where price plays a more prevalent part of my prioritisation process.
Ultimately like you have said one needs to weigh up ones priorities and make the decision based on individual circumstances.
What i will say is that as a business, our mission is to be the insurer of choice for 4X4 enthusiasts by removing the "grey" that comes with dealing with a mainstream insurer, providing a product that is valuable to our target customers and having an active involvement in the 4X4 community.
We are in for the long haul. Our product, including premiums and offerings is driven by our target market and you have seen this first hand in the premium you were quoted.
Thanks a lot for your review and the
feedback throughout so far.
FollowupID:
865162
Follow Up By: Baz - The Landy - Monday, Feb 15, 2016 at 22:24
Monday, Feb 15, 2016 at 22:24
Thanks for the response, it is reassuring to see you backing your offering!
And whilst I continue to "grapple" on the price/overall offering it is a positive step to see "enthusiast's" involved in the provision of this type of service.
Adding, dollar's in the hip pocket can be a compelling argument, oops, Mrs Landy is saying what, more cash-in-pocket for that new dress...
Perhaps I'll be back sooner than you think!
Cheers, Baz (Mrs Landy only calls me Barry if she is cross!)
FollowupID:
865174