Aussies 'can make huge savings by comparing car insurance'

Mozo

Monday 24 May 2010

Australians should compare car insurance to find the best deals rather than sticking with their existing provider out of habit, an expert has said.

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David Issa, former chief executive officer at NRMA Insurance, told the Daily Telegraph that insurance companies bank on about 80 per cent of motorists renewing policies with the same insurer to avoid the hassle of looking for alternatives.

He claimed that many companies are so scared of their customers having greater choice that they specifically forbid competitors from using their websites to obtain quotes as comparisons.

In addition, Mr Issa, who quit NRMA two years ago, observed that it is much easier to compare car insurance in the UK where company league tables have been available for ten years and where only 40 per cent of motorists stick with the same insurer year after year as a result.

"The rest shop around and take the cheapest option so in the UK motorists pay about 50 per cent less than we pay in Australia," he added.

Last week, it was reported that the police have adopted powers to fine motorists in the Yarra Ranges of Victoria up to $358 for leaving their car doors unlocked or windows down in an attempt to stop car theft and keep insurance premiums down.

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