4x4 Insurance cost increase

Submitted: Sunday, Jun 17, 2018 at 15:33
ThreadID: 136857 Views:4215 Replies:15 FollowUps:13
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I just received the renewal for my insurance for my 2008 Landcruiser (200 series).
The insurance company have just increased the cost by $630 for the next 12 months! I have not made a claim nor been claimed against. I don't mind paying extra for top cover as I have a lot of extras on the car but a 27.8% increase is a bit over the top.

Consider the following:

The cost of of fixing a 10 year old car and fixing an 11 year old car does not increase by 27.8%.

The cost of parts has not increased by 27.8%.

The cost of transport has not increased by 27.8%.

The labour costs of fixing cars has not increased by 27.8%.

Real wage growth is at 0.7 % with an expected forecast to grow to 2.5 %.

The current inflation rate in Aust is 1.9%!

Has anyone else had a drastic increase in their insurance?
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Reply By: Alloy c/t - Sunday, Jun 17, 2018 at 15:56

Sunday, Jun 17, 2018 at 15:56
Ours was the same , an in effect 45% premium increase , no claims whatsoever in over 20 years , Allianz has 'scrapped' its 60% no claim 'bonus' for a 'Star' system instead , now the maximum is 6 stars which only gives a 15% reduction ....be aware that other insurance companies are bound to follow suit as Allianz is a major 'underwriter' for many others ....
AnswerID: 619640

Reply By: lizard - Sunday, Jun 17, 2018 at 18:46

Sunday, Jun 17, 2018 at 18:46
we are all paying for the stolen cars , accidents etc
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Reply By: David I1 - Sunday, Jun 17, 2018 at 19:27

Sunday, Jun 17, 2018 at 19:27
Just my opinion. But after about 5 years the amount you pay in premiums post 5- 10 years does not equate to what you would get back in payout. As you say you have lots of "extras" on the car. Paying a premium to cover these as well? So I assume if it was totaled you could transfer them to a replacement vehicle? So I just go to 3rd party cover. When I buy a new vehicle there is no problem getting max no claim bonus as they just look up my records. Insurance is a necessary evil, even if just to cover you for the cost of the car you hit if its your fault. You never get back what you think your car is worth and all it does is leave a bitter taste.
AnswerID: 619646

Reply By: Life Member - Duncan W (WA) - Sunday, Jun 17, 2018 at 20:03

Sunday, Jun 17, 2018 at 20:03
On my 2017 MUX is was going to get a 14.6%increase & a $9.5k depressiation. As im the wrong side of 50 I was advised to give APIA a go. Huge saving and will insure me anywhere. NEEDLESS to say I'm no longer with the old Co.




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Follow Up By: Gronk - Sunday, Jun 17, 2018 at 21:01

Sunday, Jun 17, 2018 at 21:01
I'm with Apia, and every renewal time I get a bill for what I think is too much....until I google other places and find they are still the cheapest.....EXCEPT for the little offroad van....they can never match GIO....go figure..
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Reply By: NeddySmtih - Monday, Jun 18, 2018 at 08:58

Monday, Jun 18, 2018 at 08:58
Insurance companies are scum of the earth but a necessary evil which i see to be subsidising everyone else who claims, the one claim i did have to make on my old Hilux i realised that AAMI had sneakily been decreasing my initial "agreed" value on my vehicle to the point it was insured for 3.5k less then actual market value.

Yes it was partly my fault for not checking the insurance policy, but when i agree to a fixed price for an insured vehicle I would also expect that it would stay at the agreed value unless i changed it.......

Anyways, the only solution i have found is every year ring around the different companies and get the cheapest, there is no such thing as loyalty these days, just find the cheapest and best cover for you.

but a 27% increase is unacceptable....
AnswerID: 619655

Reply By: Mikee5 - Monday, Jun 18, 2018 at 09:33

Monday, Jun 18, 2018 at 09:33
We all get hit with a Loyalty Fine, the penalty for staying with one company without comparing prices every year. New business is much more important than renewals. My company dropped my Commodore comprehensive by $200 as soon as I rang them. Don't just accept the price on the notice, they rely on apathy.
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Follow Up By: Ron N - Monday, Jun 18, 2018 at 10:38

Monday, Jun 18, 2018 at 10:38
Mikee5 is right on the mark. Anyone who just pays a substantially increased renewal premium, every renewal time, is a mug.

Insurance companies are the most devious operators around, and they know policy holders are reluctant to change companies - so they try you out to the max, with massive increases in renewal premiums - which many people simply grumble about, and then just pay!

Every insurance renewal exercise for me, is a game. My insurer ramps up the renewal premium by a figure that is about 5 times the CPI - and I then go looking for other quotes.

If the other quotes aren't competitive, I make one up.
Then I call my insurer and start on them. Yes, I'd love to stay with them, they're a wonderful company, and they've always done the right thing by me (even though I haven't had a claim of any consequence in 10 or 15 years) - but I think the increase in the premium is quite excessive, and if we can't come to some agreement, then I will have to part ways with them sorrowfully, and take my business to Dodgy Bros Inc.

Of course, they will start on how Dodgy Bros are a high risk overseas operation, and known to avoid payouts, and you're risking everything if you go with them.
They forget to mention that all insurance companies avoid and minimise payouts, every chance they get.

The operator on the line usually has the power to knock 5% off the premium on the spot, as soon as you start your wail.

If you start on how the children will be missing out on breakfast every day now, because of the massively-increased premium cost - then usually that will get you transferred to a manager-type person, who has more power to knock another 10% off the renewal premium.

It's all just a big game - and the insurance companies try to tell you that they've had a bad year, and disasters were rife, and car smashes have increased by 40% over the previous year, and they have little choice but to massively increase premiums, or go broke.

They'll tell you they use carefully crafted charts and figures as to how they arrived at your premium calculation - when in fact they actually use a dartboard, and pick out the highest number they hit.

Insurance company bankruptcies are about as common as sighting unicorns grazing in your neighbours paddock - so don't hold back, they are always on a winner, no matter what you pay in premiums.

Cheers, Ron.
FollowupID: 891945

Follow Up By: Gronk - Monday, Jun 18, 2018 at 21:41

Monday, Jun 18, 2018 at 21:41
I find they won't budge an inch these days. Sorry to see you leave, but who cares !!
FollowupID: 891959

Reply By: Keir & Marg - Monday, Jun 18, 2018 at 13:13

Monday, Jun 18, 2018 at 13:13
We've had the same policy on the Pajero for years and we haven't moved house. Our policy went up by 10% this year, but when I checked the renewal details online, they had somehow conveniently omitted from the records the fact that the vehicle was garaged at home. So, our insurance had become higher-priced because the vehicle was parked on the street!! I went back in to the records, corrected the error that had magically appeared, and the insurance cost was back to normal. So, I think some insurance companies are playing the complacency game.
AnswerID: 619662

Reply By: Member - Scott & Sally - Monday, Jun 18, 2018 at 13:45

Monday, Jun 18, 2018 at 13:45
As a matter of interest, has anyone taken cover out with Club 4X4? If so how would you rate them for premiums and claims.
I'm thinking of transferring my 76 series to them.
Any feedback appreciated.

Cheers Scott
AnswerID: 619664

Follow Up By: Life Member - Duncan W (WA) - Monday, Jun 18, 2018 at 15:04

Monday, Jun 18, 2018 at 15:04
They were my previous insurer and the premium went up by 14.6% and depreciated the car by 20%. Guy I spoke to at Club 4X4 said that for every $100k of premiums received they have been paying out $140k in claims so something had to give.


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Follow Up By: Banger66 - Monday, Jun 18, 2018 at 23:16

Monday, Jun 18, 2018 at 23:16
Hey Scott & Sally
I didn't want to name them but Club 4x4 is the insurance company I was referring to.
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Follow Up By: Jarse - Tuesday, Jun 19, 2018 at 12:50

Tuesday, Jun 19, 2018 at 12:50
Nope. They are uncompetitive, in my case.

Never had an at-fault prang. Low risk Sydney suburb, garaged. Maximum NCB for over 35 years (not that it counts).

Car is $800 more than my current insurer. Camper about $500 more. Their benefits are comparable.

I don’t even bother checking with them at renewal time. They’re not even close :)
FollowupID: 891969

Reply By: Charles C - Monday, Jun 18, 2018 at 19:19

Monday, Jun 18, 2018 at 19:19
It's a standard thing for the price to go up once your car has its tenth birthday, doesn't matter what you drive or your claims history, it's hard to take when you haven't claimed in twenty years.
AnswerID: 619669

Reply By: Joe G2 - Monday, Jun 18, 2018 at 20:01

Monday, Jun 18, 2018 at 20:01
Shannons were the only insurance company that I could find who would insure a low milage 100 series with a lot of extras for a very competitive price and an agreed value.
AnswerID: 619671

Reply By: Winner W - Tuesday, Jun 19, 2018 at 12:01

Tuesday, Jun 19, 2018 at 12:01
I agree about the loyalty fine. It is robbery the way they say your premium needs to go up and at the same time the insured value decreases with age of the car. Thats double dipping ! How do you guys get around the quotes for new insurance as it seeks they all use the same software to generate quotes that are almost identical ? They all use the same underwriters in the end and the actuaries calculate the premiums.
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Follow Up By: Ron N - Tuesday, Jun 19, 2018 at 12:53

Tuesday, Jun 19, 2018 at 12:53
Winner, you're on the mark there, double-dipping at its finest!

I also note how the insurance companies continue to raise the basic excess on a regular basis.

A standard excess used to be $100, then it became $300 - then it's $500 or $600 or $800!

I find that the online quote generators are useless, you're best advised to get on the phone, and talk to a real live person of managerial level, who you can negotiate with.

Of course, this often involves a wait until that person becomes available - but if they know it's potential income, they will treat you better than if you're calling to register your dissatisfaction with a payout.

A mate just wrote off his 2008 Nissan Patrol single cab trayback (by falling asleep and running off the road into a patch of small trees).

He bingled all the LHS and the insurance company deemed it uneconomic to repair, as it had a kink in the chassis near the LHF wheel. Physically, it didn't look too bad.
It had done 280,000kms, and the company didn't want to give him any more than $15,000 for it.

He managed to talk them up to $17,000 - so he then went and bought a 2013 100,000km Mazda BT50 4WD trayback for $20,000, seeing as the cropping season isn't looking too flash, here in the West.

I thought he did pretty well out of them, as I saw a nearly identical Patrol, a 2010 model with only 100,000kms, and in excellent nick, sell for $13,250 at a local auction just before last Christmas.

What I found strange, was - I thought chassis kinks deemed a vehicle a Statutory Writeoff - yet the vehicle turned up in Pickles salvage yard, and was sold as a Repairable Writeoff?

Cheers, Ron.
FollowupID: 891970

Reply By: Batt's - Tuesday, Jun 19, 2018 at 14:40

Tuesday, Jun 19, 2018 at 14:40
Just checking you said it has increased by $630 or has it increased to $630 from a previous amount you didn't mention. The first is a massive jump in price if so I would certainly call them or change insurers.
AnswerID: 619683

Follow Up By: Banger66 - Tuesday, Jun 19, 2018 at 22:01

Tuesday, Jun 19, 2018 at 22:01
I paid $2270 last year, now they want $2900!
FollowupID: 891988

Follow Up By: David I1 - Tuesday, Jun 19, 2018 at 22:12

Tuesday, Jun 19, 2018 at 22:12
WHAT $2900 for a 2008 vehicle? I have a 2016 Discovery 4 which I paid in excess of $100K, My insurance with budget direct is about $650 a year! Cheaper than insuring my Mazda 3 at a 1/4 the purchase price! (M3 is $715)
FollowupID: 891991

Follow Up By: NeddySmtih - Wednesday, Jun 20, 2018 at 08:43

Wednesday, Jun 20, 2018 at 08:43
WTF?????? over 2k in insurance????

definately be doing a ring around, they ovbiously dont want you as a customer anymore
FollowupID: 891994

Follow Up By: Batt's - Wednesday, Jun 20, 2018 at 18:02

Wednesday, Jun 20, 2018 at 18:02
Wow but there must be more to this story if it cost that much.
FollowupID: 892016

Follow Up By: Banger66 - Saturday, Jun 23, 2018 at 13:26

Saturday, Jun 23, 2018 at 13:26
Batts, I personally would like to read the rest of that story if there's more to it. You'll have to get the rest of the story from Club 4x4. I haven't made any claims on insurance for over 7 years. I have had a clean driving record for over 11 years. It's not like I'm a risk.
I have been shopping around and just received a quote that mirrors last years (with Club 4x4) for $1900. Go figure.
FollowupID: 892077

Follow Up By: Batt's - Saturday, Jun 23, 2018 at 20:56

Saturday, Jun 23, 2018 at 20:56
Just thought it might be used as a tour vehicle or something for paying customers to justify the price other than that it seems very expensive for private use.
FollowupID: 892082

Reply By: Bobjl - Wednesday, Jun 20, 2018 at 21:10

Wednesday, Jun 20, 2018 at 21:10
My 2013 VX TTD 200 Series with BBar, Snorkel, GVM Upgrade Taipan Ex is insured for Agreed Value of $76,000. Premium cost me less than $600.00 [with special discount]- I am insured with large well known insurer. Normal price would be closer to $800.

Perhaps the specialist 4x4 Underwriter gets all the higher risk drivers - bush bashers [mountain drivers winching and the like], beach drivers and those that have vehicles exposed to higher risks [such as driving Rainbow Beach/Fraser Island and or River crossings etc]. This may mean they have a much larger share of the high risk 4x4 vehicles than other underwriters who have the Toorak tractor clients that make way fewer claims simply because they are not as exposed to those high risk activities mentioned.
AnswerID: 619710

Reply By: Munji - Thursday, Jun 21, 2018 at 12:41

Thursday, Jun 21, 2018 at 12:41
And your vehicles value would have fallen.
AnswerID: 619728

Reply By: Member - Ian C5 - Monday, Jul 02, 2018 at 19:42

Monday, Jul 02, 2018 at 19:42
I have just received my renewal notice from Club 4x4. Premium has increased by 44%. Totally stunned after all the BS in their advertising. Interesting that they have changed the address where the vehicle is garaged from a quiet cul de sac to one of the busiest roads in Perth. Pretty sure I still sleep at "the old place" every night.

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