Car Insurance Comparison Australia: 2011 in Review
There were several interesting developments in the car insurance industry in 2011. As we move on with 2012, here are some memorable events that took place – some of which will continue to impact Australians in the coming years.
Lower Crime Rates in ACT
Australians in the Australian Capital Territory reported a staggering 37% fewer car theft crimes in 2011 than in previous years. That may translate into lower future insurance premiums for drivers in the area. Those in other areas may still find excellent premiums, too, if you compare car insurance to ensure that the options you choose are competitive. Taking the first car insurance you see may result in an expensive premium for the same coverage as may be provided by another insurer who charges significantly less. Two insurers may provide the similar cover at price differences of up to several hundred dollars.
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Canstar Ratings for Top Car Insurers in 2011
Financial ratings firm Canstar Cannex rated Australia’s car insurance companies for overall value and price for 2011. One remarkable result of their findings is that drivers who claim that they are not satisfied with their past experiences with car insurers are still not always interested in switching providers. A simple car insurance quotes comparison may show that they could get lower premiums for the same coverage that they currently have, but a poll of 3,000 motorists showed that only 15% said they would be interested in looking for a better deal. That’s very few people, considering the savings they may be able to make on premiums by making the switch.
When comparing policies and premiums online, the top rankings for overall value went to AAMI and Budget Direct, who gave the best policy for the money. Suncorp got the highest ratings for claims services for the second year in a row.
Young Drivers Pay Higher Premiums
The younger the driver, the higher the insurance premiums, is the general rule. Insurers typically believe that the less experienced the driver, the riskier he is and the more likely he will make a claim on his policy. In fact, a new 18 year old driver may pay triple or even quadruple the premium for the same level of coverage as a seasoned adult driver.
There are a few methods for reducing your premium as a young driver. One is to add an adult as a driver on the car. It’s illegal to make an adult the main driver in order to reduce premiums if they are not the genuine primary driver, and if the insurer finds out you’ve done this, they may have your claims denied or your policy cancelled.
Other ideas are to pay the full annual payment up front as opposed to in monthly installments, which may cut of the total cost by eliminating some fees. You can also invest in safety measures that may reduce car insurance premiums, such as comprehensive security systems.
Car Insurance Policy Contracts to Get Simpler
One major problem with car insurance policies is that the documents are often long to read, up to 25 pages; yet read them you must, if you want to be informed about what the policy covers. This makes it somewhat difficult, and definitely time consuming, to know what’s going on with your policy, and you don’t want any insurance surprises should you one day be involved in a driving accident or find your car stolen or vandalised.
Hiring a financial advisor helps to get through the paperwork more easily, but that may come at a high price. The Australian Securities and Investments Commission (ASIC) is piloting a plan to make it more affordable to hire a financial advisor for a streamlined product at a value price, and this will hopefully help.
Yet another option is to compare car insurance policies online to find some of the better policies for your needs. If you read the coverage summaries and compare car insurance quotes online, you may have an easier time wading through the small print when you actually sign up.
This article contains general advice about car insurance. The author has not taken into account your financial situation or needs and you should consider whether the advice provided is appropriate for your own circumstances before relying on it.
Filed Under: Industry News
