Why aren’t Aussies comparing insurance companies at renewal time?

Despite possible savings of hundreds of dollars a year, Aussie consumers aren’t shopping around when it comes to their general insurance policies, according to Roy Morgan’s General Insurance Industry Currency Report.

The research found that home, travel and car insurance customers are switching providers less and less. The combination of policy holders that don’t look around (77.9%) and those that do but don’t move (14.6%), resulted in an overall decrease in the amount of Aussies switching their general insurance providers over the past four years.

The hesitancy of Aussie insurance customers to do their homework, compare insurance policies and eventually make the switch comes down to more than price, according to Industry Communications Director at Roy Morgan Research, Norman Morris.

RELATED: Why your car insurance premium could be on to rise

“It is worth noting that satisfaction with general insurance is closely associated with higher levels of loyalty, as shown by the fact that the top performers for loyalty also have well above average satisfaction levels,” said Morris.

Roy Morgan listed those “top performers” are RAC, RACV and RACQ who all registered loyalty levels over 83% whereas customers of GIO and Budget Direct were the most likely to shop around.

While vast majority of Aussies still don’t compare insurance companies and pass up huge savings, Roy Morgan’s report revealed that, in fact, we are shopping around more than we did in 2013.

“General insurance policy holders primarily say that they change companies or at least shop around due to issues relating to better premium,” said Morris. 

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For those that do shop around, there are big savings to be had.

Mozo’s car insurance mystery shop in June revealed price differences of over $1000 between rival insurers on similar comprehensive car insurance policies meaning it could pay to get cosy with competitors when it comes to renewing your insurance policies.

Mozo’s top tips when it comes to renewal time

• Don’t auto renew: Be prepared to shop around for a better insurance deal. Luckily, Mozo offers comparison tools and tables on a range of insurance products so you can keep your shopping around experience simple.
• Show you’re serious: Quotes from competitors are the best way to show your current insurer that you mean business about saving and it might prompt them to offer you a better deal.
• Ask about discounts: Insurers often offer discounts such as multi-policy, loyalty or pensioner discounts so enquire away and find out exactly what you’re eligible for.
• Brush up on your haggling skills: Be prepared to talk it out with your insurance provider no matter how uncomfortable it might feel. To brush up on your haggling skills check out our guide.

For other ideas on how to reduce your premium, check out our dedicated guide to saving on your car insurance policy.