This car cost can guzzle your cash
Automatic cars are great if you don’t like changing gears, but choosing automatic car insurance renewals can painfully crunch your finances.
COVID-19 has changed car use dramatically for many households, prompting finance specialists to encourage Australians to check their car insurance policies.
While some consumers have experienced falling insurance costs during the pandemic, new research by comparison website iselect has found more than 40 per cent have seen their premiums rise this year.
Many rises stem from customers taking a set-and-forget approach to cover, rather than checking with their insurer or rivals for a better deal, says iselect spokeswoman Laura Crowden.
“The main reason so many of us simply auto-renew comes down to time and effort — some probably intend to shop around but don’t end up getting around to it.
“For insurers, customers simply auto-renewing means they keep their existing customers with minimal effort and can focus their efforts on attracting new customers.”
Crowden says consumers can save money on car insurance by:
Regularly reviewing their policy and taking time to get a few quotes from competitors each year.
Combining multiple cars under one policy.
Ensuring they are getting the maximum discount based on their driving and claims history.
“Your rating should move with you even if you change insurer or policy type,” she says.
Consumer finance specialist Lisa Montgomery says competition among insurance companies is strong, and some offer lower premiums to people who drive less, so check rather than renew automatically. “Anything that’s set-and-forget will end up costing you money in the long run,” she says.
“You might find your insurance provider for other things may give you a discount if you move it over.”
Montgomery suggests checking online reviews of different insurers, but, if switching, make sure the new policy isn’t simply cheaper because it reduces your cover and benefits.
Insurers usually offer the best deals to new customers, so find out what that is and ask for it, because you’re a loyal customer.
“If it’s going to save you $300 or $400 a year it’s clearly worth it,” Montgomery says.