RateCity shows you why leaving your comfort zone and comparing comprehensive car insurance could save you more each year.
August 20, 2010
Sometimes there is a level of comfort in sticking with the things we know and trust. But if staying loyal to a company means that you could be paying more than necessary, wouldn’t you be interested in the alternatives?
Currently two car insurance companies, Suncorp Metway and the Insurance Australia Group (IAG), hold around 80 percent of the market share for car insurance. While the two offer their own insurance products, they are also underwriters for a number of major car insurance companies. For example under the Suncorp umbrella there is AAMI, Bingle and GIO just to name a few, while IAG is behind CGU, NRMA, The Buzz plus others.
According to RateCity’s recent bi-annual car insurance comparison throughout Australia, when it comes to the prices offered by these two main players, they are closer to the expensive end of the spectrum, with some exceptions including Bingle, which is an online-based low-cost brand and were one of the cheapest overall.
RateCity’s CEO, Damian Smith says, "Our research proves that there are a large number of people who could be paying more for their car insurance simply by sticking with who they know and trust. It is possible that the majority of these people don’t compare otherwise they would make the switch."
Why stay when you can save
For instance, RateCity found that out of the four suburbs it surveyed in Sydney, drivers could save potentially $1250, with the dearest quote from the same western location of $1965 by Suncorp and the lowest at $720 from AAMI. While in Melbourne the most expensive premium in four suburbs across the city was with Suncorp at $2107 and the cheapest was with Youi at $618, showing a saving of close to $1490.
The good news is that switching car insurance is relatively easy, there are usually no fees involved (unless you break a current contract) and it can be done instantly. However make sure you consider a few things before making the switch, such as:
- Claim rate. Ask the insurance company you are interested in for the percentage of how many claims are approved and how many aren’t. This way you can gauge how reliable they are.
- Inclusions and extras. Check what is included in the policy and what isn’t. Just because one insurance company may cover one thing, it doesn’t mean that others will. Also check what options you may have to pay extra for such as car hire.
- Consider the smaller players. Some of the smaller and not so well known companies can be more competitive in price.
- Level of service. How does the new company operate? Are they online only or do they have a dedicated call centre?
So ask yourself, why are you with your current car insurer, and if the answer is because you are loyal or they are a well known company, then what are you waiting for? Compare car insurance quotes online today and see how much you can save.