Are you paying too much for your car insurance? RateCity's study on Melbourne comprehensive car insurance premiums could encourage you to compare now before you renew your next policy.
July 16, 2010
When it comes to comprehensive car insurance, almost everyone could be charged a different price. The amount we pay can be determined by our age, the type of car we drive, our driving history and where we live. But the insurance company we decide to trust with our policy is another variable. So when it comes to finding the right provider, does it really pay to compare online?
RateCity recently put the spotlight on Melbourne, as part of its bi-annual review on comprehensive car insurance, which showed that Melbourne drivers could be paying $1000 more on average for their comprehensive car insurance.
The average cost for Melbourne drivers in the study was $960, which is $174 less than Sydney's average cost of comprehensive car insurance ($1134) for the same driver profile across four different suburbs.
The Melbourne study compared 26 car insurance companies across four different suburbs in Melbourne (Doncaster, Seddon, Meadow Heights and Caulfield) with the following results:
- Meadow Heights paid the highest premium overall with an average cost of $1082.72. It also included the biggest gap between the lowest and highest cost of cover of almost $1500 or 71 percent difference.
- Drivers in Doncaster paid the lowest for their comprehensive car insurance, at an average of $906.04. The difference between the cheapest and most expensive premiums was $800.10.
- The cheapest premiums were all from online-based businesses including Bingle, Budget Direct, Youi and The Buzz.
- The most expensive quotes were from some of the biggest players in the market including AON, Suncorp, CGU and St George Bank.
"It is hard to understand how the difference in price for the identical driver profile with the same address can have such varying degrees of car insurance quotes," RateCity CEO Damian Smith said.
"But what this means is that there is a lot of money to be saved by most drivers and the easiest way to get the best deals is by shopping around and comparing car insurance online."
Smith said features and services may vary between insurance providers so make sure you read the product disclosure statements carefully before signing up.
"There are obviously many other features besides price that drivers should think about, and we encourage drivers to look closely at all aspects of an insurer's offering," Smith said.
So whether you live in Melbourne or Sydney or any other part of Australia, there is a lot of money you can potentially save by comparing car insurance online.