78% of Aussies don’t compare home or car insurance, miss out on savings
Eek, Australia! Way too many of us are passing up the opportunity to approach a rival insurer and snag a cheaper premium on our home or car insurance policies at renewal time, according to market researcher, Roy Morgan.
That’s right, data released as part of the recently released General Insurance Industry Currency Report has revealed that a staggering 78% of us don’t approach any other insurance companies - instead opting to renew our car or home insurance policies with our current provider.
It’s a trend that has persisted in the general insurance industry, with our customer loyalty based on more than just our premium price, according to Industry Communications Director for Roy Morgan, Norman Morris.
“It is worth noting that satisfaction with general insurance is associated with higher levels of loyalty. Retaining customers is therefore likely to be impacted by more than price but also by the many other factors that drive improvements in satisfaction,” he said.
Who are the most likely to switch?
While CGU enjoyed the highest customer loyalty rates of any insurer included in the survey (85%), some insurance customers weren’t as likely to show such faith in their providers.
For example, 31% of GIO customers checked what else was on offer over the past twelve months and 27% of AAMI customers were also likely to approach a competitor before deciding whether to renew.
For these savvy shoppers, money is the major motivator.
“Roy Morgan data shows that general insurance policy holders primarily say that they change companies or at least shop around due to issues relating to better premiums,” said Morris.
Why you should consider switching insurance products
Switching insurers might feel a little laborious but there are definitely dollars to be saved by simply comparing your options, as shown by Mozo’s car insurance mystery shop last year.
We found some startling differences in premium prices between five rival insurers, not least of which was a potential $1,114 saving by switching from the most expensive policy surveyed, to the cheapest as a 25 year-old male driver in New South Wales.
And while the high cost of insurance for young, male drivers is well known, the mystery shop also uncovered more than a $500 saving for a 45 year-old female driver in New South Wales, who was switching from the most expensive, to the cheapest policy.
"There’s definitely savings out there for drivers who compare policies, with our data showing an average $1,000 difference between the cheapest and most expensive policy," said Mozo Director, Kirsty Lamont.
If you’re wondering how to go about switching your car insurance the next time you’re up for renewal, check out our top tips to choosing the perfect policy.
Mozo’s car insurance comparison checklist
- What level of cover do I need? Generally speaking, the more benefits your comprehensive policy covers, the more expensive it will be. Your job is to find a balance between getting the protection you need and the price tag you want.
- What is my budget? You might want to trim down your car insurance portion of your budget or maybe increase the level of cover without blowing it entirely - the important thing is to set a boundary so that you don’t end up overspending. Head over to our budget calculator to crunch the numbers on how much you can afford to spend.
- Is this an award-winning insurance policy? Did you know that we award Mozo Experts Choice Awards to exceptional value and quality car insurance policies on the market? So if you’re not sure where to start when searching for the right fit, head over to see our list of winners.