Australians to get new look insurance policy renewal notices from July 1

Friends crowd round laptop, looking at changes to renewal policy.

As of 1 July 2021, insurance providers subscribed to the Insurance Council of Australia’s Code of Conduct will be providing customers with a year-on-year price comparison in their premium renewal notice.

This new change is part of the council’s updated 2020 General Insurance Code of Practice.

Benefits of the Insurance renewal changes

The benefits are twofold for Australians who have a policy with one of the code subscribers. First of all, these customers will be able to see exactly how much their insurance premium has gone up. No more fishing around in filing cabinets or searching emails, to find out the price difference between this and last year.

Secondly, insurance provider’s who subscribe to the code will also be required to include an explanation of how a customer’s insurance premium is calculated. This means car or home policy renewal notices will not only show how much the premium has increased from last year, but also a breakdown of what exactly the costs are.

With this newly provided information, customers will have the opportunity to fully review what their insurance provider is actually charging them for and whether or not they could get a better deal elsewhere.

Mozo Insurance Expert Peter Marshall said the change is very welcome and could be a turning point for Australians not to auto renew their policy. “It is always great to see a little more transparency around annual insurance increases. Disclosure of last year’s premiums can be a trigger to consider getting another quote or two to see how your current policy compares.”

Shop around on car insurance

Of course as Marshall points out, the increase in one year may not look like a lot - but in two or three years, it could be pretty sizeable. He says, “Don’t be lulled into just looking at the current year’s increase and accepting that without considering how much it might have increased over a couple of years.”

“It is also important to look at some of the other information on your policy to make sure that the cover is what you expect. For instance with some car insurance policies as your car ages, the agreed value provided by the insurance provider could go down as well,” said Marshall.  

In addition to the new changes, the other good news for Australian policy holders is that competition in the insurance space is also heating up. Several new online insurance brands have launched in recent years, including Range, Honey and Poncho Insurance, making now a perfect time to shop around for a more competitive deal.

If you’re currently contemplating switching car insurance providers, head to Mozo’s compare comprehensive car insurance page, or check out the offers below.

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