Surprising things that can increase your car insurance premium
Tuesday 18 April 2017
Article by Roisin Kelly-Goldsmith
You might think that the price of your car insurance premium is determined by things like your age, driving history and address, but according to statements made in a Senate inquiry on the car insurance industry held in Sydney last week, insurers can base their policy prices on random criteria like whether customers are married, the colour of their vehicles, and even the time they submit an application.
News.com.au reported that white cars are cheaper to insure than brighter hued vehicles because they’re deemed less riskier by insurers, while singletons pay more than those who are legally married.
These revelations are just a sneak peek of some of the insights ASIC’s Economics References Committee will reveal in the next couple of months. Since November it has received 22 submissions on the general insurance industry in Australia.
Former ACCC boss Allan Fels last week called for the government to set up its own comparison site, because the big four insurers have refused to hand over key pricing information that would help customers make more informed choices.
“It’s obvious that a customer who is interested enough to go to a website to compare prices will be a motivated, perceptive person who will also look at relevant premium and quality differences,” he told News Corp.
According to a report by JP Morgan and Taylor Fry, insurance premiums are predicted to rise as high as 4% in 2017.
For consumers looking to switch car insurance providers, comparison website Mozo.com.au recommends shopping around by comparing policy features and reading car insurance customer reviews and haggling on price, especially when renewing your car insurance. For tips on the best way to bargain with your car insurer, Mozo has a helpful haggling guide with step by step instructions for getting a better deal.