Car Insurance renewal premium

Submitted: Wednesday, Jan 17, 2007 at 19:47
ThreadID: 41325 Views:3048 Replies:14 FollowUps:7
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This time last year we received the comp. insur. renewal bill of $824 for our '04 Patrol and paid it. The Insurance was with GIO, rating 1, no glass cover, agreed value and covered accessories Bar, winch, snorkel, barrier, dual battery, radio etc.
Insured for $42,000 plus accessories.

Date of last insurance claim - 1972.

Oct 06, sold Patrol and bought new ST-X Navara 2.5td, acces. snorkel, tow bar, radio and dual battery. Insured for $47,000 plus acces. Insurance premium renewal bill received this week $1269.74.

Rang GIO... why the increase of some 50% over the Patrol premium. "Well you can do different things with a ute", she said. "Such as", I asked ............Silence was the stern reply. What am I going to do with the ute that I can't do with the Patrol?
You could use it to carry stuff for your work, she said. Couldn't I do that with the Patrol?, I countered.. again silence...

I then told her that I do not use my vehicles for work (I am a truck driver) and that
my car generally sits at home and only comes out to play on the odd camping trip or holiday. She was not interested.

I said there was no way I am going to accept this premium increase unless you can justify it to me and that I shall be definitely be looking elsewhere.

At exactly the same time this is happening, my wife is already ringing around and was in fact following up on car insurance through our membership with National Seniors Association. They have an arrangement that directs their membership requirements to Allianz.

She rings thru to Allianz, explains fully the new vehicle particulars, accessories etc.
Result - 2 year full replacement value with accessories, full glass cover (non with GIO) can pay monthly with no additional admin. costs. Total premium bill $624.

I know you should definitely shop around in any case but it certainly paid off big time in this instance.

In the meantime I still kicking myself because last year (Patrol renewal) we didn't shop around. No fool like an old fool they say.

Cheers....Wayne (GU)
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Reply By: 4wdNewbie - Wednesday, Jan 17, 2007 at 20:04

Wednesday, Jan 17, 2007 at 20:04
Yeppo the lesson is definately to shop around. Im in the process of researching insurance for 4bs and as a p-plater it aint cheap...
AnswerID: 215987

Reply By: Mikee5 (QLD) - Wednesday, Jan 17, 2007 at 20:05

Wednesday, Jan 17, 2007 at 20:05
Hi Wayne,
I think that insurance companies rely on renewals. Most people do not query their premium every year so they hike them up. It is only when you are ringing for a quote that you realize you have been ripped off. I just had my house and contents renewal. I read that they offer a discount for over 55's. Because I have just moved into that category I rang to query this as my premium had dropped $5. They said yes this new discount was factored in but the premium had also risen by their annual factor (bigger than CPI). I rang around and got down from $720 to $570 (APIA). I will be getting comparable quotes on all insurance from now on.
AnswerID: 215988

Reply By: Philip A - Wednesday, Jan 17, 2007 at 20:08

Wednesday, Jan 17, 2007 at 20:08
I call it "the boiling frog strategy"
regards Philip A
AnswerID: 215991

Follow Up By: 4wdNewbie - Wednesday, Jan 17, 2007 at 21:54

Wednesday, Jan 17, 2007 at 21:54
You will need to explain that one to me...
FollowupID: 476318

Follow Up By: hoyks - Wednesday, Jan 17, 2007 at 22:12

Wednesday, Jan 17, 2007 at 22:12
They keep upping the price until you jump out. Usually people will put up with it for a few years as they expect it to go up a bit annually, but after 4 years or so they baulk at the price and start ringing around.

Every 2 years I ring up the same company and ask for a quote as a new customer. It went down $300 from the rip-off price quoted on the renewal, so I won't be going back to them for a while.
FollowupID: 476327

Reply By: F4Phantom - Wednesday, Jan 17, 2007 at 20:23

Wednesday, Jan 17, 2007 at 20:23
You take the good with the bad. I did house and contents with aami and they gave me a very cheap deal when I put all my insurances with them. So I did, then I diched my car insurance and legally they cant hike up my house even though I have it half price and no other insurance policies. So this is a situation when they got caught and not me because the insuarance is worth double what I pay with a single policy. The industry is heavily regulated and although they can change prices, they cant disabey the law and once you have a policy they cant reneg. I think you got caught because you took out new insurance.

FIY if anyone uses 3rd party for a second car suncorp does very cheap no fire no theft insurance. I currently have it one one of my cars for $130 a year!
AnswerID: 215996

Follow Up By: Member - Pesty (SA) - Wednesday, Jan 17, 2007 at 22:13

Wednesday, Jan 17, 2007 at 22:13
"and once you have a policy they cant reneg."

No but they can cancel a policy anytime they like.

Cheers Pesty
FollowupID: 476328

Reply By: Philip A - Wednesday, Jan 17, 2007 at 22:04

Wednesday, Jan 17, 2007 at 22:04
If you raise the temperature of water very slowly with a frog in it, it does not notice the increase in temperature until it is cooked.
The insurance companies start off with a low price then increase it year by year hoping you will not notice. I had insurance with Allianz, which started at $478, went to $600 the next year then to $760 or so the next. No claims . I did not stick around.
I think its a reprehesible strategy to burn your ongoing customers.
Regards Philip A
AnswerID: 216024

Follow Up By: GU - Wednesday, Jan 17, 2007 at 22:49

Wednesday, Jan 17, 2007 at 22:49
Philip. Agree with you completely. Have found that to be the case in the past with previous insurance coverage and probably the same thing here with GIO.

I think as long as you are aware of this tactic by these companies and keep shopping around for the best deal than at least you know that you've done all you can to get value.

In the meantime, onward and upward as they say.... Cheers, Wayne (GU)
FollowupID: 476345

Reply By: Ianw - Wednesday, Jan 17, 2007 at 22:52

Wednesday, Jan 17, 2007 at 22:52
I have a Navara D22 02 model insured with RACV. Max No claim bonus, live in country, not metro- insured for market value cost $328 year. Covers approx $7000 worth of accessories as well.
AnswerID: 216043

Reply By: Motherhen - Wednesday, Jan 17, 2007 at 23:05

Wednesday, Jan 17, 2007 at 23:05
We now use an insurance Broker - they are supposed to do the shopping around for you, and ensure suitable and adequate cover (like anything, 'you get what you pay for'). They also gets better deals than an individual by the volume of business they put through - bulk buying. We get them to quote on a collective package which includes house, farm, vehicles, some of the children's vehicles. Their package is not always with the same company, but is the best for us (we hope). The broker is working for you - the insurance agent for the insurance company. This also helps with claims as they can fight for you - and these days you generally have to fight to get justice with a claim.

For many years, trying to get insurance for a young driver for a first car has been darn near impossible, unless part of a package with other things eg family home and parents cars. On average, young driver's do not prove very profitable to the insurance companies, who are only in the business to make money for themselves, not to look after you. I'm a cynic when it comes to the ethics of insurance companies.

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AnswerID: 216046

Reply By: Fragle_Rock (VIC) - Wednesday, Jan 17, 2007 at 23:36

Wednesday, Jan 17, 2007 at 23:36
Yep you definately need to shop around...however be careful, price isn't everyhthing, you need to make sure you are completely aware of what is and isn't being covered. Look at the fine print, you may save a few $ now, but when it comes to the crunch you don't want any nasty surprises.

Good luck..
AnswerID: 216053

Reply By: Mark & Jo, S/side, Bris - Thursday, Jan 18, 2007 at 00:45

Thursday, Jan 18, 2007 at 00:45
Our 93 Pajero NRMA would go to an agreed value 12,671.00, was told any additions I ad to the vehicle to ring through to them and we cange the agreed value) when I took out the policy in December 05. First lot of additions to the vehicle took the agreed value to 16,229.00. When we added the snorkel, roof rack, spotties.. and suspension modifications I rang through and they said no we cannot change the agreed value, I can list the items on your policy but there is no financial addition we can make. Was peeved but had better things to do so left it..
Received the policy renewel in the mail the othe day and they took it upon themselves to drop the agreed value to 10,000.00........ Ahhhhhhh Hellooooooo!
I rang them, No I'm sorry but because the vehicle is over 10 years old the agreed value will drop every year. I said The vehicle was over ten years old when I insured it with you in the first place! She carried on with excuses, I just hung the phone up. Rang NRMA yesterday to organise the insurance for Vanni's challenger and said while I have you on the phone.. I told her the story she said yes the agreed value will go down a bit accordingly with the amount of km's, but she couldn't believe what the other woman said to me and that my policy had dropped by over 6000.00! so she added the value of the roof rack etc. then said the most she can do for an agreed value is 15,100.00.. I said fine that is a heck of a lot better than dropping it to 10,000.00 without my agreeing to it!
We pay the money for it and they are the ones stipulating to us what we can and can't have!

AnswerID: 216064

Follow Up By: F4Phantom - Thursday, Jan 18, 2007 at 01:17

Thursday, Jan 18, 2007 at 01:17
I have another agreed value story. I called a small agency in melbourne and asked for market price. She asked all the normal questions including what I paid for it. I paid around half market value (backed up by other insurance mobs). So when I got the doc's it was insured for what I paid for it as market value. I called to ask what was going on and asked what would happen if I paid $1000 for the car. She said the market would be $1000. I got firggen angry and I spoke to the manager. He said they cannot allow me to profit from the car. EG I buy 5k, market is 10K I write the car off and make 5k. I said what the friggen hell is market value!! I was so angry, he said I cannot profit and just kept repeating that line, in 10 minutes I got no where with this idiot. I ended there. Some of these people should be put out of business.
FollowupID: 476361

Follow Up By: Carl & Kaz - Thursday, Jan 18, 2007 at 20:27

Thursday, Jan 18, 2007 at 20:27
Market Value! You insure your car for what it would cost you to replace, not what it cost you to buy! How do you profit if they pay out $10k and it costs you $10k to replace it? If you can bag a bargain you have profited from good buying, not from overinsuring!!!
FollowupID: 476571

Follow Up By: F4Phantom - Thursday, Jan 18, 2007 at 21:29

Thursday, Jan 18, 2007 at 21:29
Your telling me, this company was a joke. I tell you what did stump him, when I changed my mind on the buy price and said I got given the car of my dad when he upgraded, said I pulled a figure out of the air to answer the Q. he said in that case we cant insure!
FollowupID: 476588

Reply By: Member - len W (NSW) - Thursday, Jan 18, 2007 at 06:06

Thursday, Jan 18, 2007 at 06:06
hi Wayne yesterday i had a flyer in the mail Ozicare insurance agency 1800 017536 rung them and saved $168 on the cruiser i will be doing the wifes car and house / contents when they come up i have been with q b e forever time for a change hope this helps ( no i dont work for them )
AnswerID: 216076

Reply By: madcow - Thursday, Jan 18, 2007 at 07:15

Thursday, Jan 18, 2007 at 07:15
Even if you get a quote from your current insurer you may be surprised how much you can save if you push. I'm with RACv witha agreed value of $49500 for an 03 4.2tdi Patrol including accessories in the missus name. Some companies actually give a cheaper rate if a woman with a good history is the primary driver and a partner listed as the second driver. Women in general (here we go) are safer drivers in an insurance companies eyes! Not starting a war but just stating what we were told.
AnswerID: 216087

Reply By: Max - Sydney - Thursday, Jan 18, 2007 at 16:16

Thursday, Jan 18, 2007 at 16:16
Fellas - I read threads where people ring around and save a motza on their premium. I also read threads where people get angry about being pushed around by their insurance companies when they get a claim, but I don't read of people checking out the whole claim process while they are getting quotes.

Do you ask for step by step claims procedures?, do I have to go around and get quotes from repairers?, how long do you wait for the valuer to come?, what guarantee do you give on works done by the repairer? etc.

An old mate of mine always said "You only get what you pay for" and I must say I try to make sure about both sides of the value equation.

Do these considerations come in when you ring around?

AnswerID: 216195

Reply By: GoneTroppo Member (FNQ) - Thursday, Jan 18, 2007 at 16:43

Thursday, Jan 18, 2007 at 16:43
I had it explained to me like this by an accountant.

"Insurance companies are the new banks."

Enough said !
AnswerID: 216202

Reply By: Member - Dale A (VIC) - Friday, Jan 19, 2007 at 22:30

Friday, Jan 19, 2007 at 22:30
I have a 2001 Rodeo 3.0TD dual cab which has a few mods to it ( the usual bars, wheels, suspension ( 4 inch ) , canopy, radios etc etc )
Was insured through aami initially but took out TCIS insurance ( underwritten by Allianz ) in 2004 and have been with them since.
Not cheap, I pay about $1000 for it, BUT market value on my Rodeo is now about 21k ( another mate has a std Rodeo same as mine and that is what is on his policy with RACV ), mine is still insured for $34,900 !!!! Big Difference.

I had to make a claim this year when I bumped into some one ( early morning, foggy windscreen, oncoming camry, sunglare on screen, crunch, @#$% !!!! ) and they were really good throughout the whole process.
Got broken into last month and had my PDA and GPS stolen, wasnt covered as it wasnt on the list of stuff i sent them, doh !, but they paid for the screen and passenger window to be replaced, and also retrospectively paid for a screen i broke last year ( I forgot to claim it ).

U get what U pay for I reckon sometimes.

AnswerID: 216540

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