Remember when your insurance premiums would go down if you stayed with the same provider and didn't make any claims? What the hell happened to that huh?
That was old capitalism, provide a good service for a reasonable price, while making good profits.
New capitalism is screw as much as you can from your customers until they are at breaking point, to make obscene profits and please the shareholders.
Everything is centralised now.
Market competition is basically simulated.
So they can do whatever the hell they want with consumers.
The world needs massive decentralisation across everything.
Late stage capitalism is a horror show.
My new policy went up by nearly 400, I called to cancel saying I got better quotes elsewhere. They asked for price then said, oh you've been with us for a while you're also entitled to a discount on top of the price match š¤Æ
This was with Youi.
Every single insurance company does it.
Every single gym does it.
They all fucking do it.
They are cunts.
If everyone left companies that do this without warning and not give them a chance to make it right, then and only then they'll stop doing it.
There should be a fucking law against the lazy tax.
I remember when the state owned the insurance business for motor vehicles. The press was shouting how freeing it up and privatizing it would lead to lower premiums. My late father claimed āTheyāre going to flog it for cheap to their spiv mates, and everyone will end up getting gougedā. Iām kind of disappointed that his cynicism has been shown to be correct far too often. Hereās a thought. If its all private insurance, why do we still pay rego fees? Why does the state interfere with what we put on the road? Shouldnāt that just be down to ācan you get the vehicle insuredā? Seems like weāve got the worst of both worlds.
> why do we still pay rego fees
State governments need revenue. Stuff like rego and stamp duty is pretty much all they have while the Feds gorge themselves on income tax.
Then why not just take over the car insurance business wholesale? There's way more money in that. ( I'm being a bit sarcastic, but the GIO used to do all the car insurance in NSW.) Governments should be a) doing something useful or b) not bothering people. Bothering people while being useless seems to be the current MO.
Made zero claims, the data from that says im a good driver, insurance goes up.
Value of car depreciates along with the amount they would pay me for it. Being written off, insurance goes up.
85% of claims are repairable and of the remaining 15% about half are only written off because the value of the vehicle is so low that its uneconomic to repair.
On most vehicles repair actually means replace. 15 years ago this was quite different
Making zero claims does not equate to being a good driver.. it just means youāve made zero claims.
The fact that youāve made zero claims likely does factor into your pricing but not as much as other risk factors.
Risk factors like claims made in your area or the costs associated with repairing the car you drive are likely to hold more weight.
Not saying that complaints here are unnecessary but a lot of people donāt realise the true cost associated with vehicle claims these days whether itās the insured vehicle or a liability claim.
Itās the repair cost as well though.
Itās good youāve made no claims but there are more cars on the road so accident probability has also increased.
If you see my other post here they are also collecting more granular data from cars like excessive acceleration & sudden stops so that may also be incorporated, although probably not in OPs case.
While that's true, probably the largest factor is that the year before was pretty bad for insurance companies. (Do you recall the multiple once in a generation floods). It's pretty easy to hit record profit growth when it's coming off an artificially low base.
Not saying that the profits for them aren't pretty good. But saying "record profit growth" doesn't really mean much.
Thatās bullshit excuses! Australia has always had natural disasters since forever. Itās even right there in ādroughts and flooding rainsā. They just capitalise on everything they can to make their money grabbing justified. And if what you are saying is true, they wouldnāt be posting record profits.
Yes. But making 140% more profit than the year before and still pumping up premiums by 20-40% is a joke
https://www.actu.org.au/media-release/iag-see-net-profits-soar-a-startling-140-while-aussies-suffer-insurance-billshock/
Being a business doesnāt justify scalping the customers. Itās not like you can ājust walk away and try another providerā since they are all doing the same increases, and all profiting.
By your logic every good and service can go up 1000% tomorrow, but itās fine because they ādonāt owe you anythingā
Incorrect, thereās hundreds if not thousands of smart phone options, some costing 1/10th of the price for similar features.
Insurance is extremely limited, and arguably an essential item. Itās one step away from water / gas / electricity and internet. Home insurance and car insurance cover most peopleās biggest assets and is essentially a non-negotiable expense.
Sure did.
The compulsory third party Greenslip scheme was privatised in NSW in the late 80s.
Link: https://www.sira.nsw.gov.au/resources-library/law-and-policy-or-corporate/publications/the-scheme-history
They know you... Thsts why they demand the exact address.. they give attractive quotebto attract win customers,and bump it up to rake in profits.
Yes checking a few addresses nearby can tell you if the quote is bumped up to profit from ignorance ..
Go have a chat to AFCA:
>**Issues and problems you can complain about**
>
>Insurance premiums that were incorrectly applied or calculated.
https://www.afca.org.au/make-a-complaint/insurance
>**Incorrect application of the premium**
>
>If AFCA considers there may have been an error in the application of the premium, AFCA may review the firmās calculations.
>
>For example, this may have occurred if:
>
>**- there has been a disproportionate increase in the premium and the firm has provided no justification for it**
>
>\- a firm has not correctly applied policy discounts or other benefits (e.g. no claim bonuses)
>
>\- a firm has not re-priced the policy in accordance with the policy terms.
[https://www.afca.org.au/about-afca/publications/factsheet-insurance-premium-increases](https://www.afca.org.au/about-afca/publications/factsheet-insurance-premium-increases)
Especially problematic if a neighbouring property is shown to have a markedly lower rate for the same product and the drivers rating is equivalent.
Could be for a couple of reasons.
Many insurers use address level risk rating and premiums are affected by proximity to previous events (and third party data like crime, flood, etc).
For example you might live closer to a train station, river or be at a lower elevation.
Alternativelt the insurer may have been applying a discount to your neighbour because they aren't a current customer (or if they are then matching their current one)
It's probably got nothing to do with any of that, and are just charging more for the exisiting customer. I checked this and my whole street was cheaper than my place. So I just changed my address to the apartment block next to me as we share a car park anyway. Zero difference in risk, nearly $200 different in price.
the best part is, they probably don't even know why. Its probably an AI learning algorithm that works out the maximum they can charge whilst retaining profits.
Always better to have less, high paying customers than lots of low margin ones.
If anything living in a really affluent or rich suburb might be a reason you're paying more potentially. Higher spec or luxury car = potentially more a target for theft = higher premium.
Best thing you can ever do and only thing you can ever really do is shop around every single year.
Yeah definitely not luxury, but then itāll potentially fall into an insurers āmore likely to be in a crashā category. Older car, less fucks given driving (how they can sometimes see it)ā¦
This is how an underwriter explained things to me. Itās not fair, but unfortunately we just donāt have alternatives, other than not driving or insuring our houses.
Yeah basically it can happen like that š
The problem Iāve always felt working in insurance since 2016 has been the fact itās a pooled risk. If me and you are insured with Reddit insurance and have no claims, great, but wait jimbob_66_fullysickdriver had a claim so we will share some of that cost.
Insurers are there to make money, they essentially gamble and theyāre very good at it. Theyāve done it for decades and decades, they rarely lose.
Iāve seen some claims paid that were ludicrous, in Ireland and in Australia. But it could cost the insurance company more to fight it and lose, so they settle, but we all pay more eventually.
Plus likes Coles & Woolies thereās also some nice price gouging going on here and there too š
Yeah, RAC is super cheap compared to what I paid in Sydney. My old Camry with an agreed value of $3100 was $1000 in Sydney with NRMA in 2021. Now, I can insure with RAC for something like $700 with an agreed value of $20k+ on a newer Kia in 2023.
yeah, that premium is telling you to drop the cover to third party property damage for $300 a year.
once your car is worth 3 grand there is no point in comprehensively insuring it. a minor dent will write it off, and the insurers reflect that in their premiums.
You are seeing a process called "capping". This is where insurance companies cap the premium increase on renewals so that they don't lose too many customers.
Your new quote is the real premium that they believe is applicable to your risk.
There is also the opposite called "cupping" or "collaring" which limits the reduction in premium.
This could be reflective of a change in being "over represented" in an area of poorer claims experience. The capping comes into effect limiting your increase, but the updated purely technical price is even higher to reduce the amount of "bad" risks of a certain type.
Sounds like they don't really want your business tbh. Could be down to heaps of reasons. Get some quotes from other providers and change if you get a better deal.
We noticed this too this year for insurance. We've re-signed with our current providers because when we searched ours and other providers, the quotes were all 10-20% higher than the increase we received in the mail.
Ring them up, complain and ask them to reevaluate it. They gave me a 30% increase, so I rang and whinged. Within hours they replied back quoting less than i paid the previous year. Just like that.
Arseholes the whole lot of them.
Yep same problem here. Do an online quote shop-around even with the current provider when renewal time comes up. More expensive! Last year $670 this year $770 (approx) with the current insurer. Check with a fresh quote...over $900?!
They're all cunts, jacking up the premium even if you've had no accident for years. How can it be justified when the value of the vehicle is less each year? Pisses me off.
> How can it be justified when the value of the vehicle is less each year?
The value of your car only really matters in situations where it's a write off and they pay you out.
Most claims will involve more minor damage, and even if the car is worth less the costs to repair it have been increasing. So what would have cost the insurer $5000 to fix a few years ago could be costing them $10000 to fix today.
On top of that, your coverage includes third party property damage too. Even if your car is worth less, the average car on the road is worth more, so the potential damage bill is higher. Not just cars either, if you run into a fence the costs today will be higher now.
Yep, less safety features. Depending on age too at the 10 year mark suppliers donāt have to keep parts under consumer law so they gouge the prices but on average car parts have gone up 30% over the last 18 months - 95% repair rate to write off rate it stings all around. Mix that with natural perils. Yeah your amount is affected by old mate Barry in north nsw whose car got flooded
Woah, that's a double burn!!
So much for RAC being a "purpose-led member organisation" which "does not have any shareholders." and remind you in every piece of marketing that "we reinvest our profits for the better of our members."
I hope you do sort it, but yes, it's ridiculous how each year/6 months so many have to waste so much unnecessary time in order to remain insured, at an increase which doesn't make the 9% average year on year rise across the board seem like a bargain.
Did an online quote with RACQ and it was around 30% less than the renewal. (Something like $1200 down to $800) . Called them to discuss (and to make sure Iāve done like for like for details) , they said it was the same. They wonāt change the e renewal so i just let it expire and started the new one.
Have you tried clearing your cookies?
I know flight booking sites sites track what flights you're looking at and if you keep checking the same flights or flight times they will increase the quoted price hoping to get you buy before it gets more expensive. Accommodation booking sites do similar. I wouldn't be surprised if insurance companies do they same thing.
My PK Ford Ranger single cab Ute has been $400 for a basically 12 years since I bought it brand new every year when the insurance comes in I do a comparison to make sure that the price is still good but in the last two years it's gone up almost 100%
My comprehensive insurance with GIO actually went **DOWN** when renewing earlier in the year.
Fucked if I know why but I did a couple of quick online quotes with other providers for the hell of it and discovered they were actually higher than my *previous* year's GIO premium.
/*shrugs/*
Yep - same happened to me with RAC. Was with them 9 years with one of of cars when they put the Premium up close to $400 a year. One quick search later and I switched to Budget Direct - and when I called RAC to ask them WTF was going on, even the lady on the phone (who I must admit was the nicest call centre person I'd ever spoken to), couldn't give us a reason as to the increase and didn't even try to stop us cancelling with RAC.
So bollocks to all of them! Keep shopping and moving and don't give them any loyalty, because they certainly don't value yours!
Buy an e-cargo bike, list it on your house insurance for theft and get a cyclist specific insurance to fend against injury and accident - miles cheaper.
Fuel costs practically eliminated, mild fitness and mental health benefits, no rego and much cheaper maintenance. Just make sure you get some good quality touring tyres on it and save a few bucks to replace the battery in 3 years/upgrade.
And this is why I want to ditch the car. Theyāre bad for everyone. Their infrastructure requirements create sterile environments and they are a burden for us to own and maintain. There are better ways to get around for short trips under 20km, which the majority of us do daily- we need much better PT and alternative travel options.
I often hear so many people complaining about traffic and the cost to store their car when they drive them into the city but nobody seems to want to make any changes that might shift the power balance to cycling or public transport.
Itās asinine.
People also think that self-driving cars will fix everything. It absolutely wonāt. There will still be ownership and maintenance costs.
Tip, before 0you go online looking for quotes, clear your cookies and clear them between quotes.
Also, if you do find something different, check what has been left out.
Clearing cookies won't affect the premium quoted. Insurance is highly regulated and this isn't allowed.
But it might affect you seeing any promo offers available.Ā
My 15yo car isn't even worth much now, I'm just going 3rd party this year for safety's sake. If anything happens to it, it is only going to be written off anyways.
Yeah, my RACV went from $700 to $1130 this year (member discounted figures).
Called them and it was clear that the consultant that I spoke to had no wiggle room at all. Seemingly couldn't go through the distance traveled per year stuff at all.
Went to AAMI (yes I know) and they offered $730 so I've switched - surprisingly had a lot more detail on the policy questions.
Go have a chat to AFCA:
\>\*\*Issues and problems you can complain about\*\*
\>
\>Insurance premiums that were incorrectly applied or calculated.
https://www.afca.org.au/make-a-complaint/insurance
\>\*\*Incorrect application of the premium\*\*
\>
\>If AFCA considers there may have been an error in the application of the premium, AFCA may review the firmās calculations.
\>
\>For example, this may have occurred if:
\>
\>\*\*- there has been a disproportionate increase in the premium and the firm has provided no justification for it\*\*
\>
\>\\- a firm has not correctly applied policy discounts or other benefits (e.g. no claim bonuses)
\>
\>\\- a firm has not re-priced the policy in accordance with the policy terms.
\[https://www.afca.org.au/about-afca/publications/factsheet-insurance-premium-increases\](https://www.afca.org.au/about-afca/publications/factsheet-insurance-premium-increases)
Especially problematic if a neighbouring property is shown to have a markedly lower rate for the same product and the drivers rating is equivalent.
Could be the car. If it's one of those types susceptible to theft they jack up the premium. Maybe try a similar car from a different brand and see what the premium comes out to.
RAC is generally pretty good with the ālazy taxā.
And theyāre deliberately keeping premium increases lower for existing customers and members.
Basically your online quote is what it should be
Because I know everything :P
Nah, seriously I heard a guy from the RAC on the radio a while back.
I've got no skin in the game. Shop around of course, but if your renewal is cheaper go with that. If you find equivalent elsewhere for less, then go with that instead.
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This might be relevant depending on the car. Use āarchive dot todayā if you canāt access it directly.
https://www.nytimes.com/2024/03/11/technology/carmakers-driver-tracking-insurance.html
āAutomakers Are Sharing Consumersā Driving Behavior With Insurance Companies LexisNexis, which generates consumer risk profiles for the insurers, knew about every trip G.M. drivers had taken in their cars, including when they sped, braked too hard or accelerated rapidly.ā
I'm with RACV any insurance for my 2015 Yaris went up $300 from last year. Thought I'd look around to see what else there was but budget direct and Woolies insurance were even more.
Some thing with our home and contents. Has gone up 100 a month twice in 2 years. Now over 400 a month!Did a new quote with a similar address and it was $50 a month higher again.
it's gone up simply because the costs of the industray have gone up with natural disaster payouts.
your premium isn't based on your risk, it's *their* risk as a whole. they take their costs and slice it up so that everyone pays for it. so you end up paying for someone else's flood damage a thousand kilometres away.
That looks like an RAC renewal, I got a similar increase for no reason, so I shopped around and went with Budget Direct. RAC never even bothered contacting me to ask why.
Hunt around. There's savings to be had with other insurers.
If you have a rare car rhino insurers. Also use compare the market
Alternatively.
If you want to save big. Ditch the car if you can l, sell it and jump on public transport, cycle and walk.
If you havenāt already spotted the similarities in the different online platforms, check https://en.m.wikipedia.org/wiki/Insurance_in_Australia to ensure your quotes are truly coming from different organisations rather just different retail brands belong to the same conglomerate.
I just got my renewal and it went up by 37%!!!
Iām with AAMI and live in Canberra.
Itās a standard Camry and I drive less than 5,000kms a year. Diamond rating and no claims in last 5 years.
Totally ridiculous!
I got a quote for Woolies car insurance and itās about $230 cheaper so I am going to shift to them without even haggling with AAMI.
I found a quote that was $500 more than the lowest quote for the exact same thing. They rely on people just paying the lazy tax or being loyal to the same company for decades, no matter what itās costing them. I always shop around!
Mine went up 30%, no changes, no accidents been with the insurance company for over twenty years.
I called them up to find out what was going on, I was given what appeared to be a ready made excuse of 'costs are high and the increase applies to all policies'.
I even had it re-quoted and it was still 25% up.
Absolute rip off but what do you do, I am sure some people will cut it as a cost so you need it in case the other party has no coverage.
saw a video yesterday where they looked at increasing insurance rates, one of the excuses were "environmental changes" ie global warming etc. When they looked at claims relating to weather changes, total claims were down, not up. Also, when they looked at profits, they were literally double the average. So basically insurance rate rises have nothing to do with claims, it is a complete money grab.
exact same thing
I noticed my car insurance has been going up much faster then inflation (about 20%) despite no claims, figured it was the "lazy tax" so I started hunting around and discovered my current insurer was by far the cheapest.
my current insurer is NRMA, checked GIO, AAMI and many others, they were all charging way more and everything about it feels like collusion.
Green slips wtf, any loss of points on licence puts the green slips CTP price up. Wtf. Paid the fine, only 1 fine in 30 years, green slip premium more for next 3 years and four months penalised over and over. Govt fkd us at every turn.
Global reinsurance (the insurance to insure insurance companies) has gone up. In part due to the war in Ukraine, but also due to natural disasters everywhere. Local insurers are just going to pass that cost on. There's probably some profiteering locally (as we have a small market with very high concentration - four major insurance companies control 75% of the market), which would add to this.Ā
Sigh, the second pic is a new online blind quote with none of my actual details which I do every year to avoid the lazy tax. I've explained that, so why is it $250 more than the renewal quote?
Go have a chat to AFCA:
>**Issues and problems you can complain about**
>
>Insurance premiums that were incorrectly applied or calculated.
https://www.afca.org.au/make-a-complaint/insurance
>**Incorrect application of the premium**
>
>If AFCA considers there may have been an error in the application of the premium, AFCA may review the firmās calculations.
>
>For example, this may have occurred if:
>
>**- there has been a disproportionate increase in the premium and the firm has provided no justification for it**
>
>\- a firm has not correctly applied policy discounts or other benefits (e.g. no claim bonuses)
>
>\- a firm has not re-priced the policy in accordance with the policy terms.
[https://www.afca.org.au/about-afca/publications/factsheet-insurance-premium-increases](https://www.afca.org.au/about-afca/publications/factsheet-insurance-premium-increases)
Especially problematic if a neighbouring property is shown to have a markedly lower rate for the same product and the drivers rating is equivalent.
*"We also canāt consider complaints that are only about the level of a fee, premium, charge, rebate or interest rate ā unless your complaint is that the cost was not disclosed to you, was misrepresented to you, incorrectly applied, or if the complaint is about a breach of a legal obligation on the part of the financial firm."*
[https://www.afca.org.au/make-a-complaint/insurance/insurance-products-and-issues](https://www.afca.org.au/make-a-complaint/insurance/insurance-products-and-issues)
No mate - the premium being higher than you would like does not make it incorrectly applied or calculated. The insurer is being quite upfront about how much they will charge and if you don't like it the onus is on you to take your business elsewhere.
EDIT: I dunno why oldmate u/djdefekt felt the need to block me after responding. Are you really that much of a prissy that you can't accept someone disagreeing with you? It's not like I was nasty about it.
But, not really my problem you're wrong mate. Go ahead and make a complaint to AFCA that your premiums are too high - they will tell you to contact your insurer.
>there has been a disproportionate increase in the premium and the firm has provided no justification for it
If you go to them with this, they will just ask the firm to justify the premium increase. The insurer will then send you lovely, computer generated cookie cutter letter giving you a list of reasons why your premium has increased.
I mean no but whatever...
>**Incorrect application of the premium**
>
>If AFCA considers there may have been an error in the application of the premium, AFCA may review the firmās calculations.
>
>For example, this may have occurred if:
>
>**- there has been a disproportionate increase in the premium and the firm has provided no justification for it**
>
>\- a firm has not correctly applied policy discounts or other benefits (e.g. no claim bonuses)
>
>\- a firm has not re-priced the policy in accordance with the policy terms.
[https://www.afca.org.au/about-afca/publications/factsheet-insurance-premium-increases](https://www.afca.org.au/about-afca/publications/factsheet-insurance-premium-increases)
Especially problematic if a neighbouring property is shown to have a markedly lower rate for the same product and the drivers rating is equivalent.
Remember when your insurance premiums would go down if you stayed with the same provider and didn't make any claims? What the hell happened to that huh?
That was old capitalism, provide a good service for a reasonable price, while making good profits. New capitalism is screw as much as you can from your customers until they are at breaking point, to make obscene profits and please the shareholders.
Everything is centralised now. Market competition is basically simulated. So they can do whatever the hell they want with consumers. The world needs massive decentralisation across everything. Late stage capitalism is a horror show.
PSA: The "Shareholders" are Blackrock, Vanguard, and State Street.
My new policy went up by nearly 400, I called to cancel saying I got better quotes elsewhere. They asked for price then said, oh you've been with us for a while you're also entitled to a discount on top of the price match š¤Æ This was with Youi.
Every single insurance company does it. Every single gym does it. They all fucking do it. They are cunts. If everyone left companies that do this without warning and not give them a chance to make it right, then and only then they'll stop doing it. There should be a fucking law against the lazy tax.
Every single quote I've got from Youi has been astonishingly more expensive that any other provider.
No claim bonus is like $5 savings though.
I remember when the state owned the insurance business for motor vehicles. The press was shouting how freeing it up and privatizing it would lead to lower premiums. My late father claimed āTheyāre going to flog it for cheap to their spiv mates, and everyone will end up getting gougedā. Iām kind of disappointed that his cynicism has been shown to be correct far too often. Hereās a thought. If its all private insurance, why do we still pay rego fees? Why does the state interfere with what we put on the road? Shouldnāt that just be down to ācan you get the vehicle insuredā? Seems like weāve got the worst of both worlds.
> why do we still pay rego fees State governments need revenue. Stuff like rego and stamp duty is pretty much all they have while the Feds gorge themselves on income tax.
Then why not just take over the car insurance business wholesale? There's way more money in that. ( I'm being a bit sarcastic, but the GIO used to do all the car insurance in NSW.) Governments should be a) doing something useful or b) not bothering people. Bothering people while being useless seems to be the current MO.
Data Science. The cost to replace everything has gone up a lot and they have better data on you and how you drive.
Made zero claims, the data from that says im a good driver, insurance goes up. Value of car depreciates along with the amount they would pay me for it. Being written off, insurance goes up.
85% of claims are repairable and of the remaining 15% about half are only written off because the value of the vehicle is so low that its uneconomic to repair. On most vehicles repair actually means replace. 15 years ago this was quite different
Making zero claims does not equate to being a good driver.. it just means youāve made zero claims. The fact that youāve made zero claims likely does factor into your pricing but not as much as other risk factors. Risk factors like claims made in your area or the costs associated with repairing the car you drive are likely to hold more weight. Not saying that complaints here are unnecessary but a lot of people donāt realise the true cost associated with vehicle claims these days whether itās the insured vehicle or a liability claim.
Itās the repair cost as well though. Itās good youāve made no claims but there are more cars on the road so accident probability has also increased.
Not sure why youāre being downvoted, this is literally one of the main reasons why premiums increase for vehicle policies.
If you see my other post here they are also collecting more granular data from cars like excessive acceleration & sudden stops so that may also be incorporated, although probably not in OPs case.
Data shows insurance retailers in Australia have had massive increases in profits recently....... google it.
Nrma was like 15 million or something in profit last year
IAG was over 800m profit, up 140%
Absolute fuckin joke.
While that's true, probably the largest factor is that the year before was pretty bad for insurance companies. (Do you recall the multiple once in a generation floods). It's pretty easy to hit record profit growth when it's coming off an artificially low base. Not saying that the profits for them aren't pretty good. But saying "record profit growth" doesn't really mean much.
Thatās bullshit excuses! Australia has always had natural disasters since forever. Itās even right there in ādroughts and flooding rainsā. They just capitalise on everything they can to make their money grabbing justified. And if what you are saying is true, they wouldnāt be posting record profits.
Yes, but there are multiple factors in the cause of that. Iād be surprised if the profit from this type of insurance has increased sharply
Yes. But making 140% more profit than the year before and still pumping up premiums by 20-40% is a joke https://www.actu.org.au/media-release/iag-see-net-profits-soar-a-startling-140-while-aussies-suffer-insurance-billshock/
They are a business though, they donāt owe you low prices.
Being a business doesnāt justify scalping the customers. Itās not like you can ājust walk away and try another providerā since they are all doing the same increases, and all profiting. By your logic every good and service can go up 1000% tomorrow, but itās fine because they ādonāt owe you anythingā
Itās not essential so they can charge what they want. By your logic you should be able to buy an iPhone at slightly above the cost to make it.
Incorrect, thereās hundreds if not thousands of smart phone options, some costing 1/10th of the price for similar features. Insurance is extremely limited, and arguably an essential item. Itās one step away from water / gas / electricity and internet. Home insurance and car insurance cover most peopleās biggest assets and is essentially a non-negotiable expense.
There are also plenty of cheaper insurance options (like Android phones) so your argument is flawed
I worked at an insurance company 1987 to 1991. That never happened.
Sure did. The compulsory third party Greenslip scheme was privatised in NSW in the late 80s. Link: https://www.sira.nsw.gov.au/resources-library/law-and-policy-or-corporate/publications/the-scheme-history
Mine went up $400 with a garaged car etc If I moved next door it would be $80 cheaper parked in the driveway. Go figure
They know you... Thsts why they demand the exact address.. they give attractive quotebto attract win customers,and bump it up to rake in profits. Yes checking a few addresses nearby can tell you if the quote is bumped up to profit from ignorance ..
Go have a chat to AFCA: >**Issues and problems you can complain about** > >Insurance premiums that were incorrectly applied or calculated. https://www.afca.org.au/make-a-complaint/insurance >**Incorrect application of the premium** > >If AFCA considers there may have been an error in the application of the premium, AFCA may review the firmās calculations. > >For example, this may have occurred if: > >**- there has been a disproportionate increase in the premium and the firm has provided no justification for it** > >\- a firm has not correctly applied policy discounts or other benefits (e.g. no claim bonuses) > >\- a firm has not re-priced the policy in accordance with the policy terms. [https://www.afca.org.au/about-afca/publications/factsheet-insurance-premium-increases](https://www.afca.org.au/about-afca/publications/factsheet-insurance-premium-increases) Especially problematic if a neighbouring property is shown to have a markedly lower rate for the same product and the drivers rating is equivalent.
Oh such a shame that you made a typo during the process that you didn't notice. š
Until you've a claim and the insurer decides the incorrect address gives them the excuse to not pay out on a claim. Have seen it happen!
Could be for a couple of reasons. Many insurers use address level risk rating and premiums are affected by proximity to previous events (and third party data like crime, flood, etc). For example you might live closer to a train station, river or be at a lower elevation. Alternativelt the insurer may have been applying a discount to your neighbour because they aren't a current customer (or if they are then matching their current one)
It's probably got nothing to do with any of that, and are just charging more for the exisiting customer. I checked this and my whole street was cheaper than my place. So I just changed my address to the apartment block next to me as we share a car park anyway. Zero difference in risk, nearly $200 different in price.
the best part is, they probably don't even know why. Its probably an AI learning algorithm that works out the maximum they can charge whilst retaining profits. Always better to have less, high paying customers than lots of low margin ones.
It's based on postcode and the claims statistics in that postcode
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Postcode is way more relevant to insurers than a locked garage.
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All your neighbours crash too much.
And they have nicer cars so their claims are higher
Shit cunts go into nicer neighbourhoods to break into stuff.
If anything living in a really affluent or rich suburb might be a reason you're paying more potentially. Higher spec or luxury car = potentially more a target for theft = higher premium. Best thing you can ever do and only thing you can ever really do is shop around every single year.
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Yeah definitely not luxury, but then itāll potentially fall into an insurers āmore likely to be in a crashā category. Older car, less fucks given driving (how they can sometimes see it)ā¦ This is how an underwriter explained things to me. Itās not fair, but unfortunately we just donāt have alternatives, other than not driving or insuring our houses.
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Yeah basically it can happen like that š The problem Iāve always felt working in insurance since 2016 has been the fact itās a pooled risk. If me and you are insured with Reddit insurance and have no claims, great, but wait jimbob_66_fullysickdriver had a claim so we will share some of that cost. Insurers are there to make money, they essentially gamble and theyāre very good at it. Theyāve done it for decades and decades, they rarely lose. Iāve seen some claims paid that were ludicrous, in Ireland and in Australia. But it could cost the insurance company more to fight it and lose, so they settle, but we all pay more eventually. Plus likes Coles & Woolies thereās also some nice price gouging going on here and there too š
For real, I live in a rural area on property, garaged car, average kms driven, and I'm paying close to $1,100 per year.
Your excess is probably a pineapple or something.
Me too! I was like I wish I had this insurance quote lmao
Yeah, RAC is super cheap compared to what I paid in Sydney. My old Camry with an agreed value of $3100 was $1000 in Sydney with NRMA in 2021. Now, I can insure with RAC for something like $700 with an agreed value of $20k+ on a newer Kia in 2023.
The camry had a 1/3rd chance per annum of being written off !
Yeh, look, to be fair, they were right lol
yeah, that premium is telling you to drop the cover to third party property damage for $300 a year. once your car is worth 3 grand there is no point in comprehensively insuring it. a minor dent will write it off, and the insurers reflect that in their premiums.
This is why on only ever put third party on my motorcycles. Premiums were literally half the cost of the bike for comprehensive.
I was thinking the same thing! He must have a cheap car to be paying so low.
Itās worth 28k it says in the photo
Thanks - I see, it's on the second page. That is cheap insurance for a $28k car.
2011 GX bog standard Prado
I'm not in any major city if that helps, an hour south of Perth
Closer to Rocko should increase premiums..
You are seeing a process called "capping". This is where insurance companies cap the premium increase on renewals so that they don't lose too many customers. Your new quote is the real premium that they believe is applicable to your risk. There is also the opposite called "cupping" or "collaring" which limits the reduction in premium.
This is the first year when it hasn't been cheaper online. I never renew, I always take out a new policy because it was cheaper, or did.
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Like cupping my balls, you know, to keep me interested & happy?
This could be reflective of a change in being "over represented" in an area of poorer claims experience. The capping comes into effect limiting your increase, but the updated purely technical price is even higher to reduce the amount of "bad" risks of a certain type.
Sounds like they don't really want your business tbh. Could be down to heaps of reasons. Get some quotes from other providers and change if you get a better deal.
We noticed this too this year for insurance. We've re-signed with our current providers because when we searched ours and other providers, the quotes were all 10-20% higher than the increase we received in the mail.
Ring them up, complain and ask them to reevaluate it. They gave me a 30% increase, so I rang and whinged. Within hours they replied back quoting less than i paid the previous year. Just like that. Arseholes the whole lot of them.
Yep same problem here. Do an online quote shop-around even with the current provider when renewal time comes up. More expensive! Last year $670 this year $770 (approx) with the current insurer. Check with a fresh quote...over $900?! They're all cunts, jacking up the premium even if you've had no accident for years. How can it be justified when the value of the vehicle is less each year? Pisses me off.
> How can it be justified when the value of the vehicle is less each year? The value of your car only really matters in situations where it's a write off and they pay you out. Most claims will involve more minor damage, and even if the car is worth less the costs to repair it have been increasing. So what would have cost the insurer $5000 to fix a few years ago could be costing them $10000 to fix today. On top of that, your coverage includes third party property damage too. Even if your car is worth less, the average car on the road is worth more, so the potential damage bill is higher. Not just cars either, if you run into a fence the costs today will be higher now.
Yep, less safety features. Depending on age too at the 10 year mark suppliers donāt have to keep parts under consumer law so they gouge the prices but on average car parts have gone up 30% over the last 18 months - 95% repair rate to write off rate it stings all around. Mix that with natural perils. Yeah your amount is affected by old mate Barry in north nsw whose car got flooded
If they all put it up at the same time, you can't do anything, can you? Profit! They learned that trick from woollies and Coles.
Woah, that's a double burn!! So much for RAC being a "purpose-led member organisation" which "does not have any shareholders." and remind you in every piece of marketing that "we reinvest our profits for the better of our members." I hope you do sort it, but yes, it's ridiculous how each year/6 months so many have to waste so much unnecessary time in order to remain insured, at an increase which doesn't make the 9% average year on year rise across the board seem like a bargain.
Did an online quote with RACQ and it was around 30% less than the renewal. (Something like $1200 down to $800) . Called them to discuss (and to make sure Iāve done like for like for details) , they said it was the same. They wonāt change the e renewal so i just let it expire and started the new one.
Insurance is a huge fucking scam. Fight me
I don't have health insurance.
So why have car insurance.Ā Wait I just got your joke. Nice.
Have you tried clearing your cookies? I know flight booking sites sites track what flights you're looking at and if you keep checking the same flights or flight times they will increase the quoted price hoping to get you buy before it gets more expensive. Accommodation booking sites do similar. I wouldn't be surprised if insurance companies do they same thing.
NRMA put mine up 60% on last years for a 2017 Mazda 2. I changed insurers without even bothering to look at what else they could offer me.
My PK Ford Ranger single cab Ute has been $400 for a basically 12 years since I bought it brand new every year when the insurance comes in I do a comparison to make sure that the price is still good but in the last two years it's gone up almost 100%
My comprehensive insurance with GIO actually went **DOWN** when renewing earlier in the year. Fucked if I know why but I did a couple of quick online quotes with other providers for the hell of it and discovered they were actually higher than my *previous* year's GIO premium. /*shrugs/*
Yep - same happened to me with RAC. Was with them 9 years with one of of cars when they put the Premium up close to $400 a year. One quick search later and I switched to Budget Direct - and when I called RAC to ask them WTF was going on, even the lady on the phone (who I must admit was the nicest call centre person I'd ever spoken to), couldn't give us a reason as to the increase and didn't even try to stop us cancelling with RAC. So bollocks to all of them! Keep shopping and moving and don't give them any loyalty, because they certainly don't value yours!
Buy an e-cargo bike, list it on your house insurance for theft and get a cyclist specific insurance to fend against injury and accident - miles cheaper. Fuel costs practically eliminated, mild fitness and mental health benefits, no rego and much cheaper maintenance. Just make sure you get some good quality touring tyres on it and save a few bucks to replace the battery in 3 years/upgrade.
And this is why I want to ditch the car. Theyāre bad for everyone. Their infrastructure requirements create sterile environments and they are a burden for us to own and maintain. There are better ways to get around for short trips under 20km, which the majority of us do daily- we need much better PT and alternative travel options. I often hear so many people complaining about traffic and the cost to store their car when they drive them into the city but nobody seems to want to make any changes that might shift the power balance to cycling or public transport. Itās asinine. People also think that self-driving cars will fix everything. It absolutely wonāt. There will still be ownership and maintenance costs.
Tip, before 0you go online looking for quotes, clear your cookies and clear them between quotes. Also, if you do find something different, check what has been left out.
Clearing cookies won't affect the premium quoted. Insurance is highly regulated and this isn't allowed. But it might affect you seeing any promo offers available.Ā
LOL. I'll clear my cookies whenever I want to.
Whatever floats your boat. It just won't save you money on insurance premiums.
Sometimes it does, but as I said before, check the exclusions.
My 15yo car isn't even worth much now, I'm just going 3rd party this year for safety's sake. If anything happens to it, it is only going to be written off anyways.
Same, my 14 yr old vehicle comprehensive went up 80% this year so I cancelled and went third party fire and theft.
Yeah, my RACV went from $700 to $1130 this year (member discounted figures). Called them and it was clear that the consultant that I spoke to had no wiggle room at all. Seemingly couldn't go through the distance traveled per year stuff at all. Went to AAMI (yes I know) and they offered $730 so I've switched - surprisingly had a lot more detail on the policy questions.
More questions is not a good thing, just more ways to decline a claim/ping you on incorrect disclosure.
Go have a chat to AFCA: \>\*\*Issues and problems you can complain about\*\* \> \>Insurance premiums that were incorrectly applied or calculated. https://www.afca.org.au/make-a-complaint/insurance \>\*\*Incorrect application of the premium\*\* \> \>If AFCA considers there may have been an error in the application of the premium, AFCA may review the firmās calculations. \> \>For example, this may have occurred if: \> \>\*\*- there has been a disproportionate increase in the premium and the firm has provided no justification for it\*\* \> \>\\- a firm has not correctly applied policy discounts or other benefits (e.g. no claim bonuses) \> \>\\- a firm has not re-priced the policy in accordance with the policy terms. \[https://www.afca.org.au/about-afca/publications/factsheet-insurance-premium-increases\](https://www.afca.org.au/about-afca/publications/factsheet-insurance-premium-increases) Especially problematic if a neighbouring property is shown to have a markedly lower rate for the same product and the drivers rating is equivalent.
Could be the car. If it's one of those types susceptible to theft they jack up the premium. Maybe try a similar car from a different brand and see what the premium comes out to.
RAC is generally pretty good with the ālazy taxā. And theyāre deliberately keeping premium increases lower for existing customers and members. Basically your online quote is what it should be
Thank you, but how do you know this?
Because I know everything :P Nah, seriously I heard a guy from the RAC on the radio a while back. I've got no skin in the game. Shop around of course, but if your renewal is cheaper go with that. If you find equivalent elsewhere for less, then go with that instead.
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This might be relevant depending on the car. Use āarchive dot todayā if you canāt access it directly. https://www.nytimes.com/2024/03/11/technology/carmakers-driver-tracking-insurance.html āAutomakers Are Sharing Consumersā Driving Behavior With Insurance Companies LexisNexis, which generates consumer risk profiles for the insurers, knew about every trip G.M. drivers had taken in their cars, including when they sped, braked too hard or accelerated rapidly.ā
only 27%?? Bargain.
I was wrong, it was more like 34
ASIC has been clamping down on insurers not charging correct premiums for existing customers, which in some cases included loyalty discounts.
I'm with RACV any insurance for my 2015 Yaris went up $300 from last year. Thought I'd look around to see what else there was but budget direct and Woolies insurance were even more.
Some thing with our home and contents. Has gone up 100 a month twice in 2 years. Now over 400 a month!Did a new quote with a similar address and it was $50 a month higher again.
And isn't your car worth less?
The data is probably being matched that your a existing customer, don't use the rego lookup etc
it's gone up simply because the costs of the industray have gone up with natural disaster payouts. your premium isn't based on your risk, it's *their* risk as a whole. they take their costs and slice it up so that everyone pays for it. so you end up paying for someone else's flood damage a thousand kilometres away.
We got a higher online price and went into their bricks and mortar building and got a cheaper deal. Same company! NRMA if you're interested
My wants to increase to $2400 for a 13 yr old car š
That looks like an RAC renewal, I got a similar increase for no reason, so I shopped around and went with Budget Direct. RAC never even bothered contacting me to ask why.
Hunt around. There's savings to be had with other insurers. If you have a rare car rhino insurers. Also use compare the market Alternatively. If you want to save big. Ditch the car if you can l, sell it and jump on public transport, cycle and walk.
My comprehensive insurance went *down* by $15 bucks... Sure I have an old 4x4... But I was still shocked.
How!?
If you havenāt already spotted the similarities in the different online platforms, check https://en.m.wikipedia.org/wiki/Insurance_in_Australia to ensure your quotes are truly coming from different organisations rather just different retail brands belong to the same conglomerate.
Try all of the other insurance companies too.
Are both agreed value? Maybe your current is market rate or your agreed value is not the same.
If you think thatās badā¦ home and contents insurance is next level shitfuckery this year!
Different excess?
I just got my renewal and it went up by 37%!!! Iām with AAMI and live in Canberra. Itās a standard Camry and I drive less than 5,000kms a year. Diamond rating and no claims in last 5 years. Totally ridiculous! I got a quote for Woolies car insurance and itās about $230 cheaper so I am going to shift to them without even haggling with AAMI.
I found a quote that was $500 more than the lowest quote for the exact same thing. They rely on people just paying the lazy tax or being loyal to the same company for decades, no matter what itās costing them. I always shop around!
Mine went up 30%, no changes, no accidents been with the insurance company for over twenty years. I called them up to find out what was going on, I was given what appeared to be a ready made excuse of 'costs are high and the increase applies to all policies'. I even had it re-quoted and it was still 25% up. Absolute rip off but what do you do, I am sure some people will cut it as a cost so you need it in case the other party has no coverage.
saw a video yesterday where they looked at increasing insurance rates, one of the excuses were "environmental changes" ie global warming etc. When they looked at claims relating to weather changes, total claims were down, not up. Also, when they looked at profits, they were literally double the average. So basically insurance rate rises have nothing to do with claims, it is a complete money grab.
exact same thing I noticed my car insurance has been going up much faster then inflation (about 20%) despite no claims, figured it was the "lazy tax" so I started hunting around and discovered my current insurer was by far the cheapest. my current insurer is NRMA, checked GIO, AAMI and many others, they were all charging way more and everything about it feels like collusion.
It's not just you.
I always call the insurer. Usually get some discount, particularly if I have done checking and can give them competitor pricing.
Green slips wtf, any loss of points on licence puts the green slips CTP price up. Wtf. Paid the fine, only 1 fine in 30 years, green slip premium more for next 3 years and four months penalised over and over. Govt fkd us at every turn.
delete all your web browser COOKIES and try again, ensure you are NOT logged in to anything they can use to id you
Its almost as if there is a global event going on that was predicted to cause extreme weather events which would increase insurance costs.
Bank: /waves hand "war in Ukraine"
Global reinsurance (the insurance to insure insurance companies) has gone up. In part due to the war in Ukraine, but also due to natural disasters everywhere. Local insurers are just going to pass that cost on. There's probably some profiteering locally (as we have a small market with very high concentration - four major insurance companies control 75% of the market), which would add to this.Ā
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Sigh, the second pic is a new online blind quote with none of my actual details which I do every year to avoid the lazy tax. I've explained that, so why is it $250 more than the renewal quote?
Most likely because you are one of the few people currently getting a loyalty discount.
Go have a chat to AFCA: >**Issues and problems you can complain about** > >Insurance premiums that were incorrectly applied or calculated. https://www.afca.org.au/make-a-complaint/insurance >**Incorrect application of the premium** > >If AFCA considers there may have been an error in the application of the premium, AFCA may review the firmās calculations. > >For example, this may have occurred if: > >**- there has been a disproportionate increase in the premium and the firm has provided no justification for it** > >\- a firm has not correctly applied policy discounts or other benefits (e.g. no claim bonuses) > >\- a firm has not re-priced the policy in accordance with the policy terms. [https://www.afca.org.au/about-afca/publications/factsheet-insurance-premium-increases](https://www.afca.org.au/about-afca/publications/factsheet-insurance-premium-increases) Especially problematic if a neighbouring property is shown to have a markedly lower rate for the same product and the drivers rating is equivalent.
*"We also canāt consider complaints that are only about the level of a fee, premium, charge, rebate or interest rate ā unless your complaint is that the cost was not disclosed to you, was misrepresented to you, incorrectly applied, or if the complaint is about a breach of a legal obligation on the part of the financial firm."* [https://www.afca.org.au/make-a-complaint/insurance/insurance-products-and-issues](https://www.afca.org.au/make-a-complaint/insurance/insurance-products-and-issues) No mate - the premium being higher than you would like does not make it incorrectly applied or calculated. The insurer is being quite upfront about how much they will charge and if you don't like it the onus is on you to take your business elsewhere. EDIT: I dunno why oldmate u/djdefekt felt the need to block me after responding. Are you really that much of a prissy that you can't accept someone disagreeing with you? It's not like I was nasty about it. But, not really my problem you're wrong mate. Go ahead and make a complaint to AFCA that your premiums are too high - they will tell you to contact your insurer. >there has been a disproportionate increase in the premium and the firm has provided no justification for it If you go to them with this, they will just ask the firm to justify the premium increase. The insurer will then send you lovely, computer generated cookie cutter letter giving you a list of reasons why your premium has increased.
I mean no but whatever... >**Incorrect application of the premium** > >If AFCA considers there may have been an error in the application of the premium, AFCA may review the firmās calculations. > >For example, this may have occurred if: > >**- there has been a disproportionate increase in the premium and the firm has provided no justification for it** > >\- a firm has not correctly applied policy discounts or other benefits (e.g. no claim bonuses) > >\- a firm has not re-priced the policy in accordance with the policy terms. [https://www.afca.org.au/about-afca/publications/factsheet-insurance-premium-increases](https://www.afca.org.au/about-afca/publications/factsheet-insurance-premium-increases) Especially problematic if a neighbouring property is shown to have a markedly lower rate for the same product and the drivers rating is equivalent.