powering smart financial decisions

Would you switch car insurers over a claim?

Would you switch car insurers over a claim?

When it comes to choosing comprehensive car insurance, some of the most important considerations are the level of claims service and the claim features offered, such as quality of repair and choice of repairer. At a time when you need your insurer most, this is when they show their true colours and either drag you through the mud denying your claim, or make your life as easy as possible so you can move on.

So how satisfied are you with your current insurer?

According to a survey on claims service satisfaction levels, customers rated their experiences as quite high overall.

The report surveyed 3000 motorists and where asked (on a scale of zero to 10) if they would be likely to recommend their insurer to family and friends based on their experiences. About 26 percent gave a rating of 10 that they would very likely recommend their insurer, while only 2 percent said they would not at all.

The results from the survey also showed that one in three drivers (36 percent) had made a claim during the last three years, of which about half were female and half male. Of those who had made a claim, about 86 percent of females were so happy with the level of claims service that they would continue using their insurance company, while 12 percent said they would switch. Males were not as loyal, with about 81 percent of males stating they would continue, while 16 percent would make the switch.

On a state basis, the largest number of claims made was in NSW with about 34 percent, while the ACT made the least amount with less than 2 percent.

Who is the fairest of them all?

The survey also showed that drivers aged between 25 and 34 made up the largest percentage of claims made. While drivers aged younger than 20 fared the best with less than one-third making a claim on their car insurance.

Overall, the survey recognised Suncorp Insurance as the company with the highest level of outstanding claims service and for the best combination of product features and positive feedback mentions in the survey. However they are not the cheapest. RateCity’s recent study into car insurance quotes shows they are one of the most expensive comprehensive car insurance providers out of 26 companies surveyed.

Did you find this helpful? Why not share this article?



Money Health Newsletter

Subscribe for news, tips and expert opinions to help you make smarter financial decisions

By signing up, you agree to the RateCity Privacy Policy, Terms of Use and Disclaimer.


Learn more about car insurance

Can I get a refund on car insurance?

Have you decided to cancel your car insurance policy? Maybe you’ve sold your car, or you found a better rate elsewhere.  Perhaps you’re just not driving it anymore. So what happens to the unused amount of your car insurance? Can you get a refund on unused car insurance in such a scenario?

It often depends on who cancelled the policy: you or your insurance provider. If you initiated the process of cancellation, then you may be able to get most, if not all, of your unused amount. There might be some cancellation fees involved.

However, if the policy has been cancelled by your provider, because you defaulted on a payment, then you will not receive any refunds. Keep in mind, sale of your vehicle, or traffic violations such as receiving too many speeding tickets, or being charged with reckless driving, are not reasons to withhold refunds.

If you pay your insurance monthly, your future payments will simply stop. However, many insurance policies are paid upfront for the year, as some companies offer discounts. If this is the case, get in touch with your insurer about getting a refund for the unused amount.

Can you claim insurance for car dents?

Car insurance has been designed to protect you from some of the costs of repairing damage to your car. However, is it worth claiming car insurance for a dent?

The main factor to take into account is the excess that you will need to pay at the time of making the insurance claim for the car door dent, and comparing it with the repair cost of the dent.

For instance, if someone collided into your car with a shopping cart and the cost of repairing the dent is lesser than your excess, you would be better off not making the claim. However, if your car’s panels are dented by intense hail, in all likelihood the cost of getting the dents taken care of will be much higher than your excess. Here making a car dent insurance claim would make sense.

Please note that if you’re making a car dent insurance claim for damages that have accumulated over a long time, you will be required to pay an excess for each separate incident that dented your car.


How to choose car insurance?

With so many types of car insurance out there, it can be a challenge to choose the right one for you. Factors to consider when choosing car insurance include the cost, the inclusions, and the benefits of each, which may vary from provider to provider. When choosing a car insurance company, spend some time comparing what is, and what isn’t, covered by the policies.

Compulsory third party (CTP) insurance is part of your car registration cost. However, CTP does not protect you against damage to your car if it’s written off after an accident or if it gets stolen. Moreover, you might have to pay for damages to someone else's property in case of an accident.

Other covers you may wish to consider are third party property insurance, third party property, fire and theft insurance, and comprehensive insurance. While you might want to get additional insurance, not everyone requires the highest cover, and it depends entirely on several factors, such as the make and age of the car or the area where you live.

You can compare car insurance providers to get a policy that suits your needs.

Does insurance cover a stolen car if keys were in the car?

A car insurance policy that covers the theft of your car, such as third party fire and theft insurance, usually covers a stolen car, even if the keys were in the car’s ignition.

However, your insurer may deny the claim if you live in an area where there have been several car robberies reported recently. They will see you leaving the keys in the car as a case of negligence. In such cases, your insurance provider may even expect you to have installed anti-theft security measures in your car. 

You may need to confirm whether or not you left your keys in your car, and if they had been stolen or misplaced, before filing your car insurance claim. The loss or theft of your car keys may be covered by a comprehensive car insurance policy, but usually as an optional item.

If you can confirm that your car keys were stolen, mention this in your claim as this will help establish that your car was not stolen as a result of your negligence.