I just traded in my Pajero Sport and as I won't have a replacement vehicle until I get back to Oz in April so I cancelled my NRMA comprehensive insurance instead of transferring it over as I normally would. I paid $630 for the policy and it still has a bit over 5 months left to run so I was told by the nice lady on the phone that I will be entitled to a refund of $72. I suggested to her that maybe my maths was a little out but apparently I have to pay things like an any early exit fee and of course I lose the GST that was included in the original cost of the policy. I also asked her while she was at it to cancel my vehicle roadside service which she said wasn't a problem. Unfortunately they don't give refunds on road service but I did have the option of putting it on hold until next April when I get my new vehicle that comes with 5 year road service included..Lucky I have shares in IAG otherwise I would have thought that they were trying to have a go at me
They don't all deal this way. Some have no penalty at all although they have no control over government charges they have already passed on. You can reduce this by paying monthly. I would be asking for a review myself as monthly payment plans are only a few dollars more per month than annual payment plans.
RACQ is a bit better - we comprehensively insured a car with them ($410) and cancelled after 3 weeks. Got a full refund as they have a 21 day cooling off period no questions asked.
We just recently changed a few of our insurances. (Had been with the same brokerage for over 20yrs)
As there is no more benefits for loyalty or no claims etc, we shopped around and found the RAA very competitive, and having three insurances with them, got a discount. Monthly direct debit calculated out to be only six cents more than paying for the whole year (rounding I guess).
We did leave one vehicle insurance with Shannons, as these were the only ones we found to do "laid up" insurance (for unregistered vehicle in storage while we were away). On our return we changed transferred it to comprehensive insurance and this was still at a competitive rate. Six mths balance credited toward the transfer. All worked out well for us.
I do have a quick question on vehicle insurance if anybody has any answer that makes sense -
If the market value on a vehicle decreases every year, why does the insurance premium increase?
I can understand the increase if it was for a fixed value, but surely if the amount of the vehicle is less, then shouldn't the premium stay around the same amount, not increase by a ridiculous amount?
(maybe not so quick)
Insurances - the necessary expense that never seems to be needed - until you don't have it........
Relax-n, all insurance is a highly calculated gamble on behalf of the insurance provider and premiums are a function of risk and cost of loss. For instance, the cost of repairing an aging vehicle typically increase at intervals but then not all premiums increase with vehicle age as market value can plummet too. Few companies providing the same features and services will get out of step with the rest for very long simply because they all have the same risk/loss factors.
Our caravan insurace is due now,but not doing much maybe a short trip over the next three mths we will wait three mths before we insure our van again,that virtually gives us fifteen mths for the money....
I got a $42 refund in the mail from AAMI this week it quoted the policy #
we said S**t hope they haven't cancelled insurance on tug !!
rang and found out it was for two cars ago, the one we gave our son when he got his licence
that goes back 5 years. I will take that any way!!
cheers
Mark
Relax-n, all insurance is a highly calculated gamble on behalf of the insurance provider and premiums are a function of risk and cost of loss. For instance, the cost of repairing an aging vehicle typically increase at intervals but then not all premiums increase with vehicle age as market value can plummet too. Few companies providing the same features and services will get out of step with the rest for very long simply because they all have the same risk/loss factors.
Many thanks Dabbler, that's probably the best it has ever been explained
We have just sold our home and are moving to a villa and now only need to pay contents insurance, so I did an online shop to check prices and found a significant difference in prices, finally selected two providers here in NSW the NRMA & GIO then I compared what they did and didn't cover with GIO comming out in front with a significantly lower price and same level of cover.
__________________
Life was meant to be enjoyed Australia was meant to be explored
Happily doing both to the Max.
Life is like a camera, focus on what's important & you will capture it every Time
