OK – so this is old news to pretty much everyone. We all know that if you are a dummy and just renew your insurance each year without shopping around then you will be paying a high price. But I had not realised how much.

My epiphany came at dinner last night. I got my comprehensive car insurance renewal from AAMI. It broke $900 on a private use car, rating one, no accidents for at least a decade and agreed value of $15,000. I thought this was a bit steep and the subject came up at dinner. When I realised my price was higher than that for a 20 year old female (one accident in last 2 years and car worth more than $15,000) I thought I had better shop around on the net.

First, let’s see what AAMI on the net quoted? Hmmm. Problem – they ask for enough information to work out that I am an existing customer so the internet quote came in at $1500 plus!

OK, let’s try some others? Basically around the $600-$700 range – which sounds a bit better. So I went with one of them.

In 15 minutes I saved over $300.

The broader lesson – the internet makes search much easier. It is a great tool for consumers. And bricks and mortar retailers generally –  not just insurance companies – hate it because it increases competition. Have a great Christmas and shop around on the net in the New Year!

 

3 Responses to When it comes to insurance – use the internet and shop around!

  1. David says:

    I had a similar experience. On combined house/contents and car insurance I saved over $1500 by switching away from AAMI. In previous years, AAMI had been cheaper than competitors.

  2. Chris Lloyd says:

    AAMI must be pretty silly to quote you such a high price because they think you are a captured customer. If you are searching for a quote on their website, you are anything but captured. You are a likely churner.

  3. Jon says:

    I assume that, being a clever bloke, you were comparing like with like. For example, is the flood cover the same? One policy may cover you for the road gutters overflowing if it rains heavily, the cheaper one may not. That’s one of the differences I found in my 15 minute look.

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