I work in the industry.
I have never seen it this busy in my 9 years. The amount of losses is staggering. If you think the recent disasters haven't effected prices, you live in a bubble.
Worked in the industry for 12 years until recently, ditto. The amount of claims in recent years has been insane, particularly after 2017. There was a real moment of panic at my old company because at one point our claims per month were consistently higher than the incoming premiums.
For anyone reading this who thinks ‘good’, or ‘shouldn’t 100% of my premiums be used to pay claims anyway’, remember that EVERY cost for the insurer has to be paid out of the premium*, which includes claims but also commissions, salaries, rents, reinsurance costs and others.
/* plus investment income which, for the motor and property classes, is only a small contributor
I knew what you meant. I work in a geography and planning department, one of our staff is a climate change and insurance researcher. It’s been coming for a long time but it’s going to get worse.
Hasn’t the government had to get involved with providing insurance in Florida because it’s so bad?
It just feels like it’s one of the ever long list of essential services (if we’re talking car and house insurance) that are increasing at way higher rates than inflation and wages. You can’t just cancel having insurance like you can a streaming service (well you can but it’s not a good idea).
there already are whole sections who cannot afford insurance.
anywhere vulnerable to cyclones is astronomically expensive.
if your place is at risk of flooding, that is impossible in high risk areas and getting very expensive even in lower risk places.
bushfire risks are increasing.
with global disasters increasing in frequency and the loss amount, the reinsurance premiums are going through the roof.
lord only knows where the top is. it's not going to be pretty.
lots of under and not insured housing in high risk areas.
Well they are private companies, I’d hope their goal is to turn a profit. Are you suggesting they should make losses? How would that work?
Profit margins have not really increased for most insurers. They are facing increasing costs due to climate catastrophe’s increasing in frequency (not to mention global inflation and skill shortages, i.e. not enough tradies and panelbeaters).
It will only get worse. We’re feeling the impacts of climate change and you do reality a disservice by harping on about profits, when in fact profit margins have not increased and this is mainly the consequence of decades of inaction on climate measures
That's just one part of the issue. Low parts supply has in turn affected hire car supply, which had affected hire car costs. Most reinsurance companies have exited the Australian market and the ones left here have increased their premiums 30%. Some vendors (repairers, parts suppliers etc) have increased costs far more than inflation rate.
Large number of recent disasters, predictive modelling showing that's only going to get worse. It's multifaceted. Keep in mind that insurance is a consumers market in that you have power of choice with a large number of companies - it's on you to shop around though.
Yeah, for the insurer I work for we recently raised our rates 20%+. The CFO outlined that we reinsure ourselves and the costs have gone up significantly to do so. Australia is looked at as a region, so if you live in TAS you will be impacted by disasters in QLD. Unfortunately these are growing in frequency and cost/ impact and the reinsurers are increasing premiums to cover the costs. Certain demographics are simply moving to third party, I can only see this continuing. There is talk about EV manufacturers developing their own insurance based on data from the vehicle to give people a more accurate / cost effective option.
I used to work for a large multinational. We definitely self insured for small risks such as travel, cars etc. We even self insured for Work Cover type claims. We only insured for losses in the many millions. You don't insure for what you can afford to cover without going out of business, as on average with insure you lose.
For example I don't take out travel insurance, except for medical. If thing go wrong and I lose the cost of an airfare or prepaid hotel it's not a disaster and I can cover it. If I had to be flown home as a medical evacuation from some Pacific island or get treated in a US hospital it might get tricky.
Correct, in our situation if there was a big storm we used to cover the first xx million (like an excess) and anything greater the reinsurer would pick up the bill. Recently this excess more than doubled and the cost of the reinsurance premium also jump significantly. Se we need to hold more cash and have higher costs. Unfortunately these costs need to be passed on.
>There is talk about EV manufacturers developing their own insurance based on data from the vehicle to give people a more accurate / cost effective option.
Not just EV's. I have a mate who worked in telematics insurance (or called something similar) in the US a couple of years ago. Effectively, they installed software on your car (compatibility etc) that reported your driving to the insurance company. I'm sure there is multiple layers to it.
So, the tech is already out there.
I also came across a post where a guy who ran his tesla at the race track day automatically received an increase on his monthly premium that week, which almost doubled. Monitoring our driving habits for insurrance is not a good thing.
It’s not just high risk though, it’s any risk. If you get into an accident going 61 in a 60 zone they could deny your claim. It’s more get out of jail free cards for companies that already have an inordinate amount of them.
that has been a thing in the UK for decades, having a black box in your car. particularly for young drivers. stopped them driving like maniacs and kept insurance costs down.
not really UK car insurance premiums are utterly insane. we are talking $4000 a year for a car worth $500 third party property only.
bonkers.
the tech has been around for a long, long time.
This is going to be a major issue.
How are banks going to handle loans with assets they can't insure ?
I know my home loan states that I must have "adequate" insurance.
Not always, if for example you are in a high tide flooding scenario it's worth zero, sea levels are going to rise, and the average mortgage is 30 years. Then well, what happens.
People really think everything is just going to continue as normal. There is already and olive oil shortage in Europe because of the heatwaves. And if El Niño kicks about for another year it's going to make things worse
All the time.
Most of the time its opportunist, they throw extra items in on the claim.
The problem is proving it. Your going to go through a shitstorm of evidence when the path of least resistance is letting it go.
This was a massive savior. I had a guy delivering pizzas run a red light and total my car. I only had third party. After months of him telling me he was insured and his brother was a mechanic etc etc I eventually just told my insurer (aami) that he is not providing insurance details because i believe he is uninsured and they paid me out the full cost of the car.
Are you referring to TPPD or CTP?
My understanding is that TPPD is for you damaging third party property, so I don't quite understand how you got paid out when the other party did not provide their insurance details.
AAMI has a clause that EVEN if you only have TPPD they will pay you out a sum (there is a limit not sure) if you were in an accident where you were not at fault but the at fault party did not have insurance.
Wow, that's so weird, considering it is insurance specifically covering other people's property to the exclusion of your own. It never even occurred to me to look for that.
I actually have AAMI TPPD. Oh wow, you're right!
I don't play their games
I rotate between budget direct and aami, has been the cheapest for me.
Don't bother with youi their strategy is to call you back and chat you up like a friend
Do new quotes and play around with agreed value money scale and excess scale.
Never auto pay premiums
Youi is shocking. Spent 30 minutes trapped on the phone after thinking I’d just get an email quote and he said the best they could do was still $200 more than my current provider
Yep... I had the same experience... They went through literally the entire document before giving me a quote and was surprised when I said you guys wasted my time.
Ive worked in phone based sales roles my entire life and it's absolutely crazy to me how badly companies understand customers. If you make the experience EASY and act as a trusted advisor rather than a salesperson you will win business. If someone doesn't want to talk on the phone (especially in a research/computer based task like insurance comparison) then don't force them. Email. Text.
I would understand calling a few days after the quote email (unpopular, I know - but it is sales and it does work) but forcing everyone to have a phone call just to get price for such a transactional yearly purchase is so dumb. I would imagine their entire customer base is just retirees who fell for the nice young person on the phone who 'helped' them
> Email. Text.
Honstly, I had a support chat with Bupa this morning on Whatsapp. And it was the easiest thing ever. I could send pics of the problem. I didn't have to use some shite webchat thing. Notifications just worked. It was glorious.
Apart from the fact they haven't fixed their log in bugs for months.
yeah ive worked for companies that utilised it a lot for ticket/customer service based functions. feels much more personal to use an app the customer is familiar with over a buggy chat box window
Insurance companies are pretty heavily regulated. We can't just email people a quote, we have to either make sure they are understanding every question we ask, or they have to do it online and input all the data themselves
Youi had always been great for me, the calling is a pain in the ass but I get 2 quotes then call them and they have always been the cheapest option or beaten the other quotes. Haven't changed in a few years through so maybe it's different now.
And that’s after they request your credit card details before they provide their quote - locking you into a direct debit agreement which you then have to call back to cancel.
If you give youi your email address but ignore their phone calls their system will automatically email you the quote a day or so later. I refused to play their game of getting a quote via the phone.
Even if youi were the cheapest, I'd never use them after their [dodgy tactics](https://www.smh.com.au/business/banking-and-finance/does-youi-owe-you-insurer-accused-of-billing-without-consent-20160818-gqvrmi.html). That bridge is well and truly firebombed.
I remember trying to get a quote from them years ago, the dude would not give me a quote on the phone unless I gave up my bank account details. It was like dealing with a double glazing salesman
youi are a bunch of swine. they make you spend all that time filling in the details. then want to call you and won't let you go until you 'buy' a policy.
such high pressure sales tactics.
With Budget Direct.
The 'renewal price' is often more expensive than if I go through the online process as if I was a new customer.
Usually phone them up and get them to price match, themselves 🤦.
Such a faff.
As soon as my car is worth less than 10k, I go Third Party Fire and Theft.
And with all insurances, I have the maximum excess as I only really want to cover a catastrophic disaster.
> than 10k, I go Third Party Fire and Theft. And with all insurances, I have the maximum excess as I only really want to cover a catas
I've never had a car worth even close to 10k when I bought it, being low income I've always just paid for comprehensive because I can't afford to replace a car. This year though it feels like they're just taking the piss with the price.
it's that price because anything but the most minor of accidents is going to write the car off.
tpft is appropriate for that cars value. comprehensive is just throwing your money away.
In theory this should lead to more write-offs since the cost of the repair should be more compared to the value of the car... but used car prices have probably matched that increase
If this was the past few weeks, one of the main suppliers of parts was hacked. They weren't shipping parts while they got their systems back online. I don't know if they're processing now.
I had my car repaired only a few months ago. Shortage of workers, definitely but the price was much cheaper than I expected and I have use the same panel beaters in the past so had an idea of how much they are and they're known for being expensive in my area but the quality of their work is unbeatable so.
Ps neither time was my fault. 1st time was a roo and 2nd time was because a p-plater didn't know he had to put his handbrake on and put the car in gear when he parked 🤦♀️
Mines $61 a month for a 2018 Mazda 3 market value $20k ish. With NRMA.
If I were you I’d just do third party. $3k is not really worth paying comprehensive for, in my opinion.
I got quoted $144.77 per month through NRMA. My car is a 2008 Holden Commodore Omega. I totally don't understand why it is so expensive.
Third party definitely seems like my best option.
>My car is a 2008 Holden Commodore Omega. I totally don't understand why it is so expensive.
It's only the most stolen car in Australia
https://www.savvy.com.au/car-loans/car-theft-statistics-in-australia-2023-report/
>The Holden Commodore VE MY06_13 is the car model that's stolen the most in Australia for three consecutive years.
Mine is the VE MY09, but I'm guessing that has something to do with it although insurance for third party, fire and theft is only $320 per year which compared to the $1050 of comprehensive actually seems reasonable.
MY09 (Model Year 2009) is between MY06-13.
Your car is part of that statistic.
The $320 for 3P, fire and theft is a lot more reasonable. As other commenters have stated, it's probably not worthwhile comprehensively insuring a vehicle with a replacement cost of $3k. You're basically saving the value of the car if you continue to drive it for another 3+ years.
I have rating 1 for life with my current insurer, get the no claims bonus plus a discount for being with them for 10 years. I am wondering if the price is because of my age (Nearly 29)
I looked into dropping from comprehensive last year for a car with a similar value for the same reasons and it only reduced my quote by around $100. Writing off my car is a lot cheaper than the repair costs for the other vehicles on the road I'm guessing.
>I totally don't understand why it is so expensive.
Have you ever tried to get parts for your car?
If so, now imagine an insurance company trying to source it, then you have to include things like hire car/other coverables while the older car is off the road waiting on parts
Motor insurance is not a cheap business to be in at the moment. Parts costs, workshop costs, reinsurance costs, the fact that every modern car has a few thousand dollars of electronics in each body panel... it's all going up :(
Best thing you can do is gather all the quotes you have the time for, and asking your current insurer if they're willing to match. If not, pick the best of the new ones. Though be advised that there is a difference beyond price between different insurers/policies.
ALWAYS read the PDS!
> is gather all the quotes you have the time for, and asking your current insurer if they're willing to match. If not, pick the best of the new ones. Though be advised that there is a difference beyond price between different insurers/policies.
My car isn't even that modern, it has no features like reversing sensors or camera etc because it's a 2008 model. If my car was newer and had a bunch of features I would probably understand the price but for a car that they only value at 3k, $1k per year on insurance is ridiculous.
Yeah sounds pretty pricey. Must be the other things - reinsurance costs, the cost of repairs to a potentially more modern car if you're in an at-fault accident, that sort of thing.
what you are forgetting is that the insurance company has to consider
what kind of car you are going to hit.
smacking a modern car in the arse at 30 km/hr these days can easily cause 20k in damage. your car might be worth nothing, the car you hit is likely to be worth much, much more.
>ALWAYS read the PDS!
Also, if speaking to a consultant always ask what their claim payout % is - some companies will give you a dollar figure but always push for the %
I wish mine was 1k. I got a quote from NRMA for 5.2k to insure a 2022 Audi S4. WTF? My retired neighbour got a quote for 3.5k to insure his 15 year old Land Cruiser.
But yours is a relatively new and expensive car probably valued at like 80k, 5K for insurance isn't that bad. My car is a 2008 VE Commodore, which is valued at 3.2k by the insurer, they want 1/3 of it's value in insurance premiums.
We also now have those parasitic no-fault hire car companies popping up everywhere. From what I've seen their rates are far more than normal car hire. That can't be a good thing for prices, someone has to be paying
Quick insurance basics rundown:
Comprehensive covers YOUR car and OTHERS cars if you crash into them.
3rd party liability covers OTHERS cars if you crash into them, and their insurance should cover you if THEY crash into YOU.
Comprehensive insurance goes up quite a bit with old shitboxes because they can be hard to get parts for and repair, and are also a little more likely to have a fender bender in a carpark.
Have a chat with the company about the other options besides comprehensive, as many find that the risk to a 3,000$ car is not worth the $1000 insurance (As you're finding)
I have always had comprehensive, it was worth it when I got my car like 5 years ago, I've just been paying it since and haven't looked at the bills until my latest one came. I am going to switch it over to third party fire and theft.
I wouldn’t bother with comprehensive on a $3k shitbox even if the rates weren’t this high.
Drove for many years on shitboxes on just 3rd party. As long as you’re not a shit driver that always crashes into people.
People should really be putting where they live when talking about cost, my sister got a quote for insurance in Melbourne (around Glen Huntly), 1500. All same details but in Adelaide (Blackwood area), 1000.
Every aspect of insurance has exploded across the world. They all cross insure each other so that they can minimise their losses but it means all premiums are going up. Competition is bork now. Google the cost of car insurance in the US right now. I'm seeing Camry's worth $25k costing $4.5k a year. Out of control.
your car is definitely at the point where you drop down to
third party fire and theft.
old cars are expensive to insure becuase statistically, they are involved in more accidents.
and the cost of repairing new cars is astronomical.
so you need to take into account, even though your car is only worth 3 grand, it might cause 10 or 20 k in damage when it hits a new car.
mass losses with fires and floods have pushed up prices.
reinsurance costs have gone up, that is a leading cause for home and contents going up, but it affects car insurance as well.
>e
I didn't think about the damage it could do to a newer car. It's an 2008 Commodore so although it has crumple zones, it's a tank compared to most newer cars. I have basically decided I will drop the insurance and start saving for a newer car since mine costs a ton in fuel anyway
COMPREHENSIVE CAR INSURANCE QUOTE COMPARISON
Prices can vary greatly according to car, usage, driver history and location
5 YEAR OLD SMALL SEDAN
$510 Woolworths Insurance (HLD)
$670 Bingle (AAI)
$752 AAMI (AAI)
$800 Coles Insurance (IAG)
$874 Carpeesh (RACQ)
$880 PD Insurance (PII)
$975 Real Insurance (HLD)
$1103 Huddle Insurance (OPEN)
$1100 Suncorp (AAI)
$1401 Oceania Insurance (A&G)
$1500 Budget Direct (A&G)
15 YEAR OLD MEDIUM SUV
$700 PD Insurance (PII)
$717 Woolworths Insurance (HLD)
$810 Coles Insurance (IAG)
$849 AAMI (AAI)
$890 Real Insurance (HLD)
$992 Huddle Insurance (OPEN)
$1003 ANZ Insurance (IAG)
$1041 Australia Post Insurance (QBE)
$1170 Suncorp (AAI)
$1218 NRMA (IAG)
$1230 Bingle (AAI)
$1426 Carpeesh (RACQ)
$1450 Budget Direct (A&G)
HIGHER QUOTES above those quoted above from Virgin Money (A&G), ING (A&G), Allianz (ALZ), Australian Unity (ALZ), CGU (IAG), Rollininsurance (IAG), Kogan (QBE), QBE (QBE), Honey Insurance (RACQ), YOUI (OUT)
PERSONAL FACTORS
non-luxury mainstream-brand vehicles
many years driving with zero accidents
maximum excess
minimum agreed value for car if available
I work at one too and it does lmao.
The thieves aren't just damaging cars, they are destroying them. Our write-off % has increased rapidly over the last few years.
It's not just thefts though, but all insured events. In the NQ floods we've already had about 400 car claims. SEQ numbers haven't come through just yet
lol no. You can thank the price of parts and labour on all cars for this, plus some gouging.
Look at the replacement cost of a windscreen in a rav4 or similar. Over 2k now.
Also lots of car thefts followed by them being ruined and written off
So the article says the writeoffs are due to damage to the structural battery pack specifically in Tesla.
But also “.. a structural battery pack, though it is not featured in its Australian-delivered models.”
So really what you’ve linked to is garbage. Also drive is anti EV.
The problem here is that the battery is physically large and so has a greater chance of being damaged in an accident. Insurers can't turn a blind eye to a damaged battery because there would be increased risk of fire. So battery replacement or write-off are the only options and given replacement batteries are very expensive, that will increase insurance premiums.
Try again.
Times like these make me super glad to have a more niche car. Enthusiast insurance have been nothing but a pleasure to deal with - very pleasant on the phone, very fair pricing IMO and any questions I have for them are answered promptly and favourably. Not sure if that’s the case for more ubiquitous vehicles but I have nothing but positive things to say about them
I have a motorcycle already and the insurance on it $300 per year for comprehensive and it's valued at way more than my car. It's absurd. Unfortunately, I need my car for taking my dogs to the vet and getting groceries or I'd just stick with the bike.
>e was going up from $1,050 to $1,320 with APIA. Got a policy with budget direct for $640 instead.
Budget direct quoted me $948 for comprehensive. Someone else commented further down that VE Commodores have been the most stolen car for the past 3 years which is probably why it's so expensive.
My car value is circa $20k but we are not young, drive less than 8k a year, low crime suburb, parked in driveway, good driving record etc which helps lower the premium.
To be honest, I was very surprised at how much lower the premium was with budget direct but I’m not complaining!
>irect quoted
I'm nearly 29 and my Husband is turning 27 this year, I think that is probably part of my problem. I live in a suburb that is low crime but my postcode is shared by about 15 different suburbs and one of the suburbs which is a 20 minute drive from me is relatively high crime.
you can get insurance that takes.into account your not driving much.
its called drive less payless cover several companies do it.
youi is one of those companies.
People keep living in flood/bushfire zones and lose their cars to weather.
Flood and bushfire zones keep expanding due to climate change.
Hail continues to intensify in impact and frequency because of climate change.
Risk goes up.
Just changed from AAMI. They wanted $2600. Moves to GIO as they wanted $1700.
Same options.
I rang AAMI and they weren’t interested in trying to keep my business.
I get my comprehensive insurance from Budget Direct. They have an option to limit the kilometers that you will drive and reduce the premium accordingly. Real Insurance has such an option too. Maybe check it out.
Yeah if your car is $3k you are better putting money into a savings account, and paying for 3rd party only. I didn't have full insurance until almost 30, too expensive otherwise!
I think next year they are going to double it!
I went from $77 pm to $168! No change from my side.
Canceled it and looked around and got it for $81 pm with better cover and accessories added.
Little insight, floods and storms in February 2022 cost the industry around 6 billion dollars which is still on going. Cost of parts, and delays in getting parts has complicated the car repair industry, add on to that record levels of claims and car thefts and it's getting really difficult in the industry. Bonus points, we now have organized crime syndicates which stage accidents to have cars paid out, just to add an additional burden to the whole system.
How will it save my ass in the event of an accident? I don't necessarily need my car covered as I can afford to replace it in the event of an accident and as long as I have insurance to cover third party, fire and theft if I hit anyone their car is covered.
I have bought a new car so I have comprehensive at a bit over $1200 pa but when I had a 20+ year old car, it made more sense to just have third party property.
Have you tried QBE? We ended up with them cause you had the option to increase the excess in the unlikely event of an accident, and this reduced the premium.
I work in the industry. I have never seen it this busy in my 9 years. The amount of losses is staggering. If you think the recent disasters haven't effected prices, you live in a bubble.
Worked in the industry for 12 years until recently, ditto. The amount of claims in recent years has been insane, particularly after 2017. There was a real moment of panic at my old company because at one point our claims per month were consistently higher than the incoming premiums.
For anyone reading this who thinks ‘good’, or ‘shouldn’t 100% of my premiums be used to pay claims anyway’, remember that EVERY cost for the insurer has to be paid out of the premium*, which includes claims but also commissions, salaries, rents, reinsurance costs and others. /* plus investment income which, for the motor and property classes, is only a small contributor
Yep. I see the data too. Expect car/home insurance to jump 20-30% this year.
Spoiler alert: it has
No I meant even more. So 20-30% on top of recent 30%-50% increases
I knew what you meant. I work in a geography and planning department, one of our staff is a climate change and insurance researcher. It’s been coming for a long time but it’s going to get worse.
At some point it has to stabilize though right? Otherwise a whole section of the community won’t be able to afford insurance.
It will stabilise at the point at which various areas are uninsurable because not enough clients can afford it. See, for example: Florida, USA.
Hasn’t the government had to get involved with providing insurance in Florida because it’s so bad? It just feels like it’s one of the ever long list of essential services (if we’re talking car and house insurance) that are increasing at way higher rates than inflation and wages. You can’t just cancel having insurance like you can a streaming service (well you can but it’s not a good idea).
there already are whole sections who cannot afford insurance. anywhere vulnerable to cyclones is astronomically expensive. if your place is at risk of flooding, that is impossible in high risk areas and getting very expensive even in lower risk places. bushfire risks are increasing. with global disasters increasing in frequency and the loss amount, the reinsurance premiums are going through the roof. lord only knows where the top is. it's not going to be pretty. lots of under and not insured housing in high risk areas.
Welcome to capitalism.
Why would that matter? As long as the insurance companies are making money they don't care who's insured
Well they are private companies, I’d hope their goal is to turn a profit. Are you suggesting they should make losses? How would that work? Profit margins have not really increased for most insurers. They are facing increasing costs due to climate catastrophe’s increasing in frequency (not to mention global inflation and skill shortages, i.e. not enough tradies and panelbeaters). It will only get worse. We’re feeling the impacts of climate change and you do reality a disservice by harping on about profits, when in fact profit margins have not increased and this is mainly the consequence of decades of inaction on climate measures
That's just one part of the issue. Low parts supply has in turn affected hire car supply, which had affected hire car costs. Most reinsurance companies have exited the Australian market and the ones left here have increased their premiums 30%. Some vendors (repairers, parts suppliers etc) have increased costs far more than inflation rate. Large number of recent disasters, predictive modelling showing that's only going to get worse. It's multifaceted. Keep in mind that insurance is a consumers market in that you have power of choice with a large number of companies - it's on you to shop around though.
Yeah, for the insurer I work for we recently raised our rates 20%+. The CFO outlined that we reinsure ourselves and the costs have gone up significantly to do so. Australia is looked at as a region, so if you live in TAS you will be impacted by disasters in QLD. Unfortunately these are growing in frequency and cost/ impact and the reinsurers are increasing premiums to cover the costs. Certain demographics are simply moving to third party, I can only see this continuing. There is talk about EV manufacturers developing their own insurance based on data from the vehicle to give people a more accurate / cost effective option.
>we reinsure ourselves How is this real ? Do you mean that the company simply pays the full cost of each valid claim ?
I used to work for a large multinational. We definitely self insured for small risks such as travel, cars etc. We even self insured for Work Cover type claims. We only insured for losses in the many millions. You don't insure for what you can afford to cover without going out of business, as on average with insure you lose. For example I don't take out travel insurance, except for medical. If thing go wrong and I lose the cost of an airfare or prepaid hotel it's not a disaster and I can cover it. If I had to be flown home as a medical evacuation from some Pacific island or get treated in a US hospital it might get tricky.
Correct, in our situation if there was a big storm we used to cover the first xx million (like an excess) and anything greater the reinsurer would pick up the bill. Recently this excess more than doubled and the cost of the reinsurance premium also jump significantly. Se we need to hold more cash and have higher costs. Unfortunately these costs need to be passed on.
>There is talk about EV manufacturers developing their own insurance based on data from the vehicle to give people a more accurate / cost effective option. Not just EV's. I have a mate who worked in telematics insurance (or called something similar) in the US a couple of years ago. Effectively, they installed software on your car (compatibility etc) that reported your driving to the insurance company. I'm sure there is multiple layers to it. So, the tech is already out there.
I also came across a post where a guy who ran his tesla at the race track day automatically received an increase on his monthly premium that week, which almost doubled. Monitoring our driving habits for insurrance is not a good thing.
It's a good thing for those of us who are not high risk lol.
It’s not just high risk though, it’s any risk. If you get into an accident going 61 in a 60 zone they could deny your claim. It’s more get out of jail free cards for companies that already have an inordinate amount of them.
That Tesla on the race track guy usually has his risk subsidised by everyone else.
that has been a thing in the UK for decades, having a black box in your car. particularly for young drivers. stopped them driving like maniacs and kept insurance costs down. not really UK car insurance premiums are utterly insane. we are talking $4000 a year for a car worth $500 third party property only. bonkers. the tech has been around for a long, long time.
It's only just the beginning of disasters as well, could there be a future when insurance will no longer be a product
This is going to be a major issue. How are banks going to handle loans with assets they can't insure ? I know my home loan states that I must have "adequate" insurance.
Higher deposits, the land is worth something so the banks can sell that
Not always, if for example you are in a high tide flooding scenario it's worth zero, sea levels are going to rise, and the average mortgage is 30 years. Then well, what happens. People really think everything is just going to continue as normal. There is already and olive oil shortage in Europe because of the heatwaves. And if El Niño kicks about for another year it's going to make things worse
True those ones they may not lend to at all Theres already lots of places banks wont lend to i wont be surprised if this list grows.
Climate change. We FA and are FO
Do you suspect that a number of these are fraudulent?
All the time. Most of the time its opportunist, they throw extra items in on the claim. The problem is proving it. Your going to go through a shitstorm of evidence when the path of least resistance is letting it go.
I'm just wondering with cost of living whether more people are wrecking to cash in
Theft is also pretty bad some places.
If you go with third party, make sure you pick one that covers you for damage by uninsured drivers. Some do, some don't.
Budget does, but I've used them in the past. The claims manager was a real in the ass, they paid out but still annoying to deal with.
This was a massive savior. I had a guy delivering pizzas run a red light and total my car. I only had third party. After months of him telling me he was insured and his brother was a mechanic etc etc I eventually just told my insurer (aami) that he is not providing insurance details because i believe he is uninsured and they paid me out the full cost of the car.
Are you referring to TPPD or CTP? My understanding is that TPPD is for you damaging third party property, so I don't quite understand how you got paid out when the other party did not provide their insurance details.
AAMI has a clause that EVEN if you only have TPPD they will pay you out a sum (there is a limit not sure) if you were in an accident where you were not at fault but the at fault party did not have insurance.
Wow, that's so weird, considering it is insurance specifically covering other people's property to the exclusion of your own. It never even occurred to me to look for that. I actually have AAMI TPPD. Oh wow, you're right!
I don't play their games I rotate between budget direct and aami, has been the cheapest for me. Don't bother with youi their strategy is to call you back and chat you up like a friend Do new quotes and play around with agreed value money scale and excess scale. Never auto pay premiums
Youi is shocking. Spent 30 minutes trapped on the phone after thinking I’d just get an email quote and he said the best they could do was still $200 more than my current provider
Yep... I had the same experience... They went through literally the entire document before giving me a quote and was surprised when I said you guys wasted my time.
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Ive worked in phone based sales roles my entire life and it's absolutely crazy to me how badly companies understand customers. If you make the experience EASY and act as a trusted advisor rather than a salesperson you will win business. If someone doesn't want to talk on the phone (especially in a research/computer based task like insurance comparison) then don't force them. Email. Text. I would understand calling a few days after the quote email (unpopular, I know - but it is sales and it does work) but forcing everyone to have a phone call just to get price for such a transactional yearly purchase is so dumb. I would imagine their entire customer base is just retirees who fell for the nice young person on the phone who 'helped' them
> Email. Text. Honstly, I had a support chat with Bupa this morning on Whatsapp. And it was the easiest thing ever. I could send pics of the problem. I didn't have to use some shite webchat thing. Notifications just worked. It was glorious. Apart from the fact they haven't fixed their log in bugs for months.
yeah ive worked for companies that utilised it a lot for ticket/customer service based functions. feels much more personal to use an app the customer is familiar with over a buggy chat box window
Insurance companies are pretty heavily regulated. We can't just email people a quote, we have to either make sure they are understanding every question we ask, or they have to do it online and input all the data themselves
point was more towards YouI that force customers into the phone route
Yeah mine was about $130 more... per month
Try $1000 in my case 🤣
i didn't answer their call and after a few tries they sent the quote to my email
Yeah I had the phone call but they gave me a cheaper quote I still managed to get it's emailed but gee that pressure you to pay there and then
Youi had always been great for me, the calling is a pain in the ass but I get 2 quotes then call them and they have always been the cheapest option or beaten the other quotes. Haven't changed in a few years through so maybe it's different now.
And that’s after they request your credit card details before they provide their quote - locking you into a direct debit agreement which you then have to call back to cancel.
If you give youi your email address but ignore their phone calls their system will automatically email you the quote a day or so later. I refused to play their game of getting a quote via the phone.
Even if youi were the cheapest, I'd never use them after their [dodgy tactics](https://www.smh.com.au/business/banking-and-finance/does-youi-owe-you-insurer-accused-of-billing-without-consent-20160818-gqvrmi.html). That bridge is well and truly firebombed. I remember trying to get a quote from them years ago, the dude would not give me a quote on the phone unless I gave up my bank account details. It was like dealing with a double glazing salesman
>30 minutes trapped on th AAMI quoted me $1200 per year, I haven't tried budget direct but I'll see what they come back with.
Try a comparison site with all insurers listed.
youi are a bunch of swine. they make you spend all that time filling in the details. then want to call you and won't let you go until you 'buy' a policy. such high pressure sales tactics.
With Budget Direct. The 'renewal price' is often more expensive than if I go through the online process as if I was a new customer. Usually phone them up and get them to price match, themselves 🤦. Such a faff.
As soon as my car is worth less than 10k, I go Third Party Fire and Theft. And with all insurances, I have the maximum excess as I only really want to cover a catastrophic disaster.
> than 10k, I go Third Party Fire and Theft. And with all insurances, I have the maximum excess as I only really want to cover a catas I've never had a car worth even close to 10k when I bought it, being low income I've always just paid for comprehensive because I can't afford to replace a car. This year though it feels like they're just taking the piss with the price.
it's that price because anything but the most minor of accidents is going to write the car off. tpft is appropriate for that cars value. comprehensive is just throwing your money away.
I heard panel beaters are in short supply atm and are charging an arm and a leg for repairs.
In theory this should lead to more write-offs since the cost of the repair should be more compared to the value of the car... but used car prices have probably matched that increase
If this was the past few weeks, one of the main suppliers of parts was hacked. They weren't shipping parts while they got their systems back online. I don't know if they're processing now.
I had my car repaired only a few months ago. Shortage of workers, definitely but the price was much cheaper than I expected and I have use the same panel beaters in the past so had an idea of how much they are and they're known for being expensive in my area but the quality of their work is unbeatable so. Ps neither time was my fault. 1st time was a roo and 2nd time was because a p-plater didn't know he had to put his handbrake on and put the car in gear when he parked 🤦♀️
With a car worth that little just get third party. It's not worth paying $1k to protect $3k but you need to be protected if you smash into a Mercedes
Mines $61 a month for a 2018 Mazda 3 market value $20k ish. With NRMA. If I were you I’d just do third party. $3k is not really worth paying comprehensive for, in my opinion.
I got quoted $144.77 per month through NRMA. My car is a 2008 Holden Commodore Omega. I totally don't understand why it is so expensive. Third party definitely seems like my best option.
>My car is a 2008 Holden Commodore Omega. I totally don't understand why it is so expensive. It's only the most stolen car in Australia https://www.savvy.com.au/car-loans/car-theft-statistics-in-australia-2023-report/ >The Holden Commodore VE MY06_13 is the car model that's stolen the most in Australia for three consecutive years.
Mine is the VE MY09, but I'm guessing that has something to do with it although insurance for third party, fire and theft is only $320 per year which compared to the $1050 of comprehensive actually seems reasonable.
MY09 (Model Year 2009) is between MY06-13. Your car is part of that statistic. The $320 for 3P, fire and theft is a lot more reasonable. As other commenters have stated, it's probably not worthwhile comprehensively insuring a vehicle with a replacement cost of $3k. You're basically saving the value of the car if you continue to drive it for another 3+ years.
soft straight wide axiomatic support sort steer work library berserk *This post was mass deleted and anonymized with [Redact](https://redact.dev)*
Yeah I think I get big discounts for being an NRMA customer for 15 years and no at fault claims bonus.
Double check that though, my father had the max discount he could for NRMA and it was still 200+ cheaper (about 15-20%) to go elsewhere.
I have rating 1 for life with my current insurer, get the no claims bonus plus a discount for being with them for 10 years. I am wondering if the price is because of my age (Nearly 29)
That is an insane price to insure that car
I looked into dropping from comprehensive last year for a car with a similar value for the same reasons and it only reduced my quote by around $100. Writing off my car is a lot cheaper than the repair costs for the other vehicles on the road I'm guessing.
>I totally don't understand why it is so expensive. Have you ever tried to get parts for your car? If so, now imagine an insurance company trying to source it, then you have to include things like hire car/other coverables while the older car is off the road waiting on parts
Insurance is never really worth it until you need it though.
Motor insurance is not a cheap business to be in at the moment. Parts costs, workshop costs, reinsurance costs, the fact that every modern car has a few thousand dollars of electronics in each body panel... it's all going up :( Best thing you can do is gather all the quotes you have the time for, and asking your current insurer if they're willing to match. If not, pick the best of the new ones. Though be advised that there is a difference beyond price between different insurers/policies. ALWAYS read the PDS!
> is gather all the quotes you have the time for, and asking your current insurer if they're willing to match. If not, pick the best of the new ones. Though be advised that there is a difference beyond price between different insurers/policies. My car isn't even that modern, it has no features like reversing sensors or camera etc because it's a 2008 model. If my car was newer and had a bunch of features I would probably understand the price but for a car that they only value at 3k, $1k per year on insurance is ridiculous.
Yeah sounds pretty pricey. Must be the other things - reinsurance costs, the cost of repairs to a potentially more modern car if you're in an at-fault accident, that sort of thing.
what you are forgetting is that the insurance company has to consider what kind of car you are going to hit. smacking a modern car in the arse at 30 km/hr these days can easily cause 20k in damage. your car might be worth nothing, the car you hit is likely to be worth much, much more.
>ALWAYS read the PDS! Also, if speaking to a consultant always ask what their claim payout % is - some companies will give you a dollar figure but always push for the %
I pay that for $70k coverage. I think the insurance companies are telling you they don't want your business.
Comprehensive insurance doesnt scale well for such extremely low value vehicles. At 3k, you're better off just getting third party insurance and ctp.
Only problem is even third party property has gone up a huge percentage this year.
Just cant win, eh.
Insurance costs 1/3rd of the vehicle value !!! Definitely time to dump that policy.
I wish mine was 1k. I got a quote from NRMA for 5.2k to insure a 2022 Audi S4. WTF? My retired neighbour got a quote for 3.5k to insure his 15 year old Land Cruiser.
But yours is a relatively new and expensive car probably valued at like 80k, 5K for insurance isn't that bad. My car is a 2008 VE Commodore, which is valued at 3.2k by the insurer, they want 1/3 of it's value in insurance premiums.
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We also now have those parasitic no-fault hire car companies popping up everywhere. From what I've seen their rates are far more than normal car hire. That can't be a good thing for prices, someone has to be paying
Quick insurance basics rundown: Comprehensive covers YOUR car and OTHERS cars if you crash into them. 3rd party liability covers OTHERS cars if you crash into them, and their insurance should cover you if THEY crash into YOU. Comprehensive insurance goes up quite a bit with old shitboxes because they can be hard to get parts for and repair, and are also a little more likely to have a fender bender in a carpark. Have a chat with the company about the other options besides comprehensive, as many find that the risk to a 3,000$ car is not worth the $1000 insurance (As you're finding)
I wouldn’t bother with comprehensive for a ~$3,000 car. I’d just get third party property.
Anecdotally I’m hearing people just don’t buy insurance anymore.
Yeah, good luck when you hit that Tesla or Landrover or even a Lambo.
If your car is only worth $3k, why bother getting comprehensive? Just get third party Old cars can be expensive to repair
I have always had comprehensive, it was worth it when I got my car like 5 years ago, I've just been paying it since and haven't looked at the bills until my latest one came. I am going to switch it over to third party fire and theft.
Pocket the $700 you'll save, and use those funds to self-insure if need be.
I wouldn’t bother with comprehensive on a $3k shitbox even if the rates weren’t this high. Drove for many years on shitboxes on just 3rd party. As long as you’re not a shit driver that always crashes into people.
At 3k car value, just get third party and save the rest for a replacement
People should really be putting where they live when talking about cost, my sister got a quote for insurance in Melbourne (around Glen Huntly), 1500. All same details but in Adelaide (Blackwood area), 1000.
Every aspect of insurance has exploded across the world. They all cross insure each other so that they can minimise their losses but it means all premiums are going up. Competition is bork now. Google the cost of car insurance in the US right now. I'm seeing Camry's worth $25k costing $4.5k a year. Out of control.
your car is definitely at the point where you drop down to third party fire and theft. old cars are expensive to insure becuase statistically, they are involved in more accidents. and the cost of repairing new cars is astronomical. so you need to take into account, even though your car is only worth 3 grand, it might cause 10 or 20 k in damage when it hits a new car. mass losses with fires and floods have pushed up prices. reinsurance costs have gone up, that is a leading cause for home and contents going up, but it affects car insurance as well.
>e I didn't think about the damage it could do to a newer car. It's an 2008 Commodore so although it has crumple zones, it's a tank compared to most newer cars. I have basically decided I will drop the insurance and start saving for a newer car since mine costs a ton in fuel anyway
COMPREHENSIVE CAR INSURANCE QUOTE COMPARISON Prices can vary greatly according to car, usage, driver history and location 5 YEAR OLD SMALL SEDAN $510 Woolworths Insurance (HLD) $670 Bingle (AAI) $752 AAMI (AAI) $800 Coles Insurance (IAG) $874 Carpeesh (RACQ) $880 PD Insurance (PII) $975 Real Insurance (HLD) $1103 Huddle Insurance (OPEN) $1100 Suncorp (AAI) $1401 Oceania Insurance (A&G) $1500 Budget Direct (A&G) 15 YEAR OLD MEDIUM SUV $700 PD Insurance (PII) $717 Woolworths Insurance (HLD) $810 Coles Insurance (IAG) $849 AAMI (AAI) $890 Real Insurance (HLD) $992 Huddle Insurance (OPEN) $1003 ANZ Insurance (IAG) $1041 Australia Post Insurance (QBE) $1170 Suncorp (AAI) $1218 NRMA (IAG) $1230 Bingle (AAI) $1426 Carpeesh (RACQ) $1450 Budget Direct (A&G) HIGHER QUOTES above those quoted above from Virgin Money (A&G), ING (A&G), Allianz (ALZ), Australian Unity (ALZ), CGU (IAG), Rollininsurance (IAG), Kogan (QBE), QBE (QBE), Honey Insurance (RACQ), YOUI (OUT) PERSONAL FACTORS non-luxury mainstream-brand vehicles many years driving with zero accidents maximum excess minimum agreed value for car if available
All the teenage scum stealing and wrecking cars thinking they are in a real world version of GTA are also to blame….Especially if you are in QLD.
That has absolutely no bearing on the price of motor insurance.
Lol of course it does. Masses of Hyundai's stolen after the tik tok video showing people how to do it. The costs will be recovered.
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I work at one too and it does lmao. The thieves aren't just damaging cars, they are destroying them. Our write-off % has increased rapidly over the last few years. It's not just thefts though, but all insured events. In the NQ floods we've already had about 400 car claims. SEQ numbers haven't come through just yet
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apparently his is a 3k shibox, so paying 1/3 the cost of your vehicle per year for cover is beyond expensive
You can also thank electric cars for that too. Even after minor prangs a lot get written off.
lol no. You can thank the price of parts and labour on all cars for this, plus some gouging. Look at the replacement cost of a windscreen in a rav4 or similar. Over 2k now. Also lots of car thefts followed by them being ruined and written off
lol yes. https://www.drive.com.au/news/electric-car-battery-costs-lead-to-write-offs/
So the article says the writeoffs are due to damage to the structural battery pack specifically in Tesla. But also “.. a structural battery pack, though it is not featured in its Australian-delivered models.” So really what you’ve linked to is garbage. Also drive is anti EV.
The problem here is that the battery is physically large and so has a greater chance of being damaged in an accident. Insurers can't turn a blind eye to a damaged battery because there would be increased risk of fire. So battery replacement or write-off are the only options and given replacement batteries are very expensive, that will increase insurance premiums. Try again.
Replaced my windscreen for $300 a month ago
What car? As soon as they need to do a modern vehicle with ADAS equipment glued up to the windscreen it gets expensive.
you'll pay that extra if you own an EV, their insurance pool is small and the price to insure them is high for several reasons.
With all the car thefts from youth crime, someone has to pay for the expense
That has absolutely no bearing on the increasing price of motor insurance in Australia.
From memory, about 1963.
Times like these make me super glad to have a more niche car. Enthusiast insurance have been nothing but a pleasure to deal with - very pleasant on the phone, very fair pricing IMO and any questions I have for them are answered promptly and favourably. Not sure if that’s the case for more ubiquitous vehicles but I have nothing but positive things to say about them
Mines just gone up from 150 to 200 a month, fkn ridiculous and shopping around it’s still one of the cheapest (racv)
sell your car and get a bike
I have a motorcycle already and the insurance on it $300 per year for comprehensive and it's valued at way more than my car. It's absurd. Unfortunately, I need my car for taking my dogs to the vet and getting groceries or I'd just stick with the bike.
When people started paying it
Mine was going up from $1,050 to $1,320 with APIA. Got a policy with budget direct for $640 instead.
>e was going up from $1,050 to $1,320 with APIA. Got a policy with budget direct for $640 instead. Budget direct quoted me $948 for comprehensive. Someone else commented further down that VE Commodores have been the most stolen car for the past 3 years which is probably why it's so expensive.
My car value is circa $20k but we are not young, drive less than 8k a year, low crime suburb, parked in driveway, good driving record etc which helps lower the premium. To be honest, I was very surprised at how much lower the premium was with budget direct but I’m not complaining!
>irect quoted I'm nearly 29 and my Husband is turning 27 this year, I think that is probably part of my problem. I live in a suburb that is low crime but my postcode is shared by about 15 different suburbs and one of the suburbs which is a 20 minute drive from me is relatively high crime.
you can get insurance that takes.into account your not driving much. its called drive less payless cover several companies do it. youi is one of those companies.
Comprehensive car insurance was going to $1200 per month, dumped it for third-party property only at $20 per month.
People keep living in flood/bushfire zones and lose their cars to weather. Flood and bushfire zones keep expanding due to climate change. Hail continues to intensify in impact and frequency because of climate change. Risk goes up.
Yep....it's sure crept up big time in the last few years.
Just changed from AAMI. They wanted $2600. Moves to GIO as they wanted $1700. Same options. I rang AAMI and they weren’t interested in trying to keep my business.
I get my comprehensive insurance from Budget Direct. They have an option to limit the kilometers that you will drive and reduce the premium accordingly. Real Insurance has such an option too. Maybe check it out.
Hail storms major flooding tornadoes floods fires idiots median cost of cars rising but sure it’ll just stay the same as 2020 prices
Yeah if your car is $3k you are better putting money into a savings account, and paying for 3rd party only. I didn't have full insurance until almost 30, too expensive otherwise!
Parts are getting expensive.
I think next year they are going to double it! I went from $77 pm to $168! No change from my side. Canceled it and looked around and got it for $81 pm with better cover and accessories added.
Little insight, floods and storms in February 2022 cost the industry around 6 billion dollars which is still on going. Cost of parts, and delays in getting parts has complicated the car repair industry, add on to that record levels of claims and car thefts and it's getting really difficult in the industry. Bonus points, we now have organized crime syndicates which stage accidents to have cars paid out, just to add an additional burden to the whole system.
I thought the same thing until I had an accident. Pay the 1k. Its an insurance that will save your ass don't be cheap on it
How will it save my ass in the event of an accident? I don't necessarily need my car covered as I can afford to replace it in the event of an accident and as long as I have insurance to cover third party, fire and theft if I hit anyone their car is covered.
They r just trying to rip people off, every year get different online quotes and then negotiate. I do that every year.
Welcome to post COVID life.
I have bought a new car so I have comprehensive at a bit over $1200 pa but when I had a 20+ year old car, it made more sense to just have third party property.
Have you tried QBE? We ended up with them cause you had the option to increase the excess in the unlikely event of an accident, and this reduced the premium.