Two winners who successfully used car insurance comparison to find the cheapest car insurance

Car insurance companies play heavily on the fact that 80% of customers automatically re-insure with them without doing their homework and getting other quotes.

Add “compare car insurance” to your list of  ‘must-do’ activities if you want to get the cheapest car insurance you can.

Look below at just 2 case studies that we have had sent in by users of our Just-Ezi car insurance comparator.

Case study 1:
Middle-aged man driving middle-aged (hybrid!) car living in middle of eastern suburbs of Sydney – expiring comprehensive car insurance premium $1280, renewal price offered by NRMA = $1728 (he was being rewarded for his loyalty, no doubt, having insured with them for over 30 years), a 35% increase. He changed to AAMI, reduced his premium to $935 (a saving of $793, 45%!).

Our middle-aged man in his middle-aged hybrid had made no claims, in fact, nothing changed on his policy. Our middle-aged hero then went on to re-new his CTP: AAMI quoted $677, NRMA $686. So he moved his CTP policy to AAMI too – and the money he saved paid for it (and a slap up meal too!).

What conclusions can we draw from this tale?

1. Based on the CTP quote both insurers treated him as a middle-aged driver
2. NRMA don’t like hybrids? (NRMA says there is no basis for this conclusion, you decide)
3. The terms of the different policies on offer were so radically different as to justify the different prices? (seems unlikely but you decide). How do car insurers help you to compare non price differences in competing policies? Answer, not much
4. NRMA don’t like him (or want his business)
Case study 2:
Middle-aged man living in the middle of NSW driving large 4-WD, insured with Youi for $708. Youi offer renewal pricing of $755, middle-aged man (with too much time on his hands) calls Youi to complain and, lo-and-behold, manages to reduce premium to $640. A year-on-year reduction of almost 10%.

Given the aforementioned time-glut this middle-aged individual has, he actually went on-line and checked AAMI ($908) and NRMA ($1498)… pays to go with Youi, eh?

Conclusions?

1. Bing Lee isn’t the only place where ‘everything’s negotiable’
2. NRMA don’t much like him either
3. ……go find the competition – they may actually want your business enough to charge you less

So what should you do?

• Your homework – it pays to do some price comparing: the good news is that at www.just-ezi.com.au we do a lot of your homework for you… 2 days work now in 5 clicks
• Stick to what you don’t know – just because you haven’t heard of a certain insurer that doesn’t make them a poor choice (all insurance companies in Australia are regulated by APRA).

Finally, the real conclusion is that where the government forces participants to provide the consumer with easy price comparison transparency (as is the case with CTP) prices get lower but, when there is no such pressure…

Sure, the big insurance companies compete, but there are ways consumers, with our help, can make them compete a lot more, which should lower prices.