Surprising things that can increase your car insurance premium
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.
Just sticking with the same insurer for years can also mean you're overpaying, as its unfortunately common practice for insurers to raise premiums year on year for loyal customers while offering big discounts to those who switch. According to a report by JP Morgan and Taylor Fry, insurance premiums are predicted to rise by as much as 4% in 2017.
To help Australians save money on car insurance, the comparison experts at Mozo.com.au have created a monthly round-up of the top car insurance deals on the market.
Just a few minutes of online research comparing car insurance policies and discounts online could potentially save you hundreds each year.
Some of the top car insurance deals available in May 2017 include:
- Budget Direct - 15% discount off comprehensive car insurance when you buy online. Compare now >>
- Woolworths Car Insurance - 5% online discount plus price beat promise for over 25s on any comparable comprehensive renewal notice. Compare now >>
- Dodo Insurance - save 15% when you buy online plus receive a free 7 inch Android Tablet. Compare now >>
Compare more comprehensive car insurance deals with our free online service.