Bloody Insurance

[Ed]

Hey, just for a change its someone complaining about insurance.

So I purchased my Ute brand new at the end of last year, Age 19 just gone green P's... As you do i purchased AAMI's full comprehensive cover for about $1950 for 12 months...

This brings me to today, came home to a letter from AAMI, I knew it was for insurance so I expected $1950 at the most and hopefully a nice drop...$2320 for 12 months.



A ####ing increase of almost $400 in just a year, I have NOT made any claims, let alone contacted AAMI in the past year. Called them up and the best they could come up with was that STATISTICS are the reason my cover has risen.

I bet those statistics are 1980 corolla's who pay 3rd party not comprehensive... Its a ####in joke.


/end rant, Sorry.

[LittleMissVE]

I know it's a pain in the arse.

Mine went from $1300 one year up about that much the next year because a new road had been built linking my suburb up to the next one. Wtf?

What you pay now isn't too bad. I'm pretty sure mine is around the 6k mark... After a few insurance claims & loss of licence a couple times, companies aren't really that keen to insure you lol.

[one_and_only2004]

My old VY S went up $100 one year and dropped $1800 in value - I enjoyed that one a lot. Try RACQ or NRMA, AAMI was always more expensive for me.

[STEEV888]

your definitely not the only person out there experiencing such price hikes. last year, when i was 20 it cost me 1200 a year to insure my vy R8 for 25k.
this year sold it and brought a 200sx which is no where near as expensive or anything, and the best they could do was insured for 5k market value which i then rose to the maximum of $6900. and it costs me $900 and its still minimum $1500 excess, so add it all up and if i crash its cost me 2.5k, so i got 4.5k back from my 10k investment.
dont even know why i bother tbh.

and after all this, AAMI is still the cheapest.

[Drawnnite]

first got my car and was looking at what insurance would cost.
was $5500 a year full comp for my ute. (type in 18yr old male, 5spd man ute...... to get that price)
was $2200 or so a year full comp for mums 89 rolla. honestly, the car isnt even worth that much!

so dont worry i know how you feel.
even now its like $1800 a year full comp and im hoping it will drop. but doubt it will.
im just dreading the day i do get the next car.... especially what will be done to it =P

[RK5TAR]

Shop around.
I was only ever insured with AAMI when I worked for them (staff discount). After I left working for them they stuffed my policy up big time so I took my insurance with me too.
I was with RACV and ended up moving back to GIO, purely because on my husbands new car they could do $7k better on the agreed value and the cost was only $10 per month more.

[discomat]

age 17
car - VN Calais
value - $5000
insurance - $1700

age 25
car - VE Calais
value - $22,000
Insurance - $650.... The only thing that has gotten cheaper for me in the last 7 years though

[Ed]

age 17
car - VN Calais
value - $5000
insurance - $1700

age 25
car - VE Calais
value - $22,000
Insurance - $650.... The only thing that has gotten cheaper for me in the last 7 years though

I can't go without insurance for 5 years though!

[the_trademarc]

Hmmmm....perhaps I can help, seeing as I do work for an Insurance Company....

Those figures are all based on stats and numbers- i.e. how many people your age drive that sort of vehicle in your relative suburb, and compared to how many claims are made by the people of your age driving that sort of vehicle.

So really, the main reason for the rise, if you haven't claimed or anything, is that 19-year olds driving VE SV6 Utes had less claims than 20-year olds driving VE SV6 Utes, and as a consequence, because you are now 20, you fit into that category, which realises a higher premium.

I know it sucks and sounds like genuine bullshit but that's the way it is.

If you want a reference- I was 21 when I got my VE Clubbie, and without my staff discount was only going to pay 1500, because of my age and my car relative to where I live. The fact that very few 21-year olds would have one meant it would be lower than say a VE SV6. I was paying more for my VZ SV6 when I had it.

It will happen- all I can suggest is:
-->Shop around (JustCar may be a good option, underwritten by AAMI)
-->Increase your excess- if you're a confident driver, increasing your excess from 550 to 1100 could save you a couple hundred.

[Ed]

Hmmmm....perhaps I can help, seeing as I do work for an Insurance Company....

Those figures are all based on stats and numbers- i.e. how many people your age drive that sort of vehicle in your relative suburb, and compared to how many claims are made by the people of your age driving that sort of vehicle.

So really, the main reason for the rise, if you haven't claimed or anything, is that 19-year olds driving VE SV6 Utes had less claims than 20-year olds driving VE SV6 Utes, and as a consequence, because you are now 20, you fit into that category, which realises a higher premium.

I know it sucks and sounds like genuine bullshit but that's the way it is.

If you want a reference- I was 21 when I got my VE Clubbie, and without my staff discount was only going to pay 1500, because of my age and my car relative to where I live. The fact that very few 21-year olds would have one meant it would be lower than say a VE SV6. I was paying more for my VZ SV6 when I had it.

It will happen- all I can suggest is:
-->Shop around (JustCar may be a good option, underwritten by AAMI)
-->Increase your excess- if you're a confident driver, increasing your excess from 550 to 1100 could save you a couple hundred.

thanks mate, i think my excess was already $1000, possibly $1500....don't have the sheet handy at the moment, your right, it does sound extremely dodgy.

[Rufys]

It's not dodgy. It's all based on risk, and risk is based on stats. You're now a higher risk to the insurance company. Hence the higher premium. It's actually very easy to understand.

[minux]

It's not dodgy. It's all based on risk, and risk is based on stats. You're now a higher risk to the insurance company. Hence the higher premium. It's actually very easy to understand.

Problem is their methods of working prices out is a load of shit, just speak to any decent broker. My Senator was with AAMI (my broker couldnt organise insurance at the time quick enough), new policy come in and it was $400 year higher. I rang and asked why, they said it based on accidents with that vehicle in my neighbourhood. Now given that 1. the local Holden dealership had only sold 2 VY Sigs in the area and 2. I had never sighted one, I find it hard to believe there were any accidents that caused my cover to go up $400. The woman ont he phone then went on to tell me how this HSV was the most popular in my area and in fact some 1100 models were registered in the suburb...amazing, considering there wasnt that many VY I sigs lol.

Long story short, went to broker and my policy ended up almost $400 cheaper.

AAMI, RACV etc it isn't about real risk or accidents or stats, it is about generating income like any other business, the stories just help them sell the bullshit.

[Rufys]

Whatever. Sister used to work for one of the biggest insurers in the country (NRMA) and it isn't just a "story". It's based on the risk the insurance company takes to insure the vehicle.

It's not stats about specific models (i.e. VY Series 1 Senator Signatures) - it's about the amount of HSV claims in the area. THAT'S how risk is worked out.

[minux]

Whatever. Sister used to work for one of the biggest insurers in the country (NRMA) and it isn't just a "story". It's based on the risk the insurance company takes to insure the vehicle.

It's not stats about specific models (i.e. VY Series 1 Senator Signatures) - it's about the amount of HSV claims in the area. THAT'S how risk is worked out.

Hey I only repeat what is said fromt he horses mouth. I also only repeat what is said to me by my broker, who can amazingly charge half as much as these other insurers. You are kidding yourself if you really think "stats" make up the prices. $$$ make up the prices...just like every other business.

[the_trademarc]

It's a lot more complicated than just the stats and Claims in the areas Minux, the actuarial models that are used are designed as such to insure the risks that the Insurance Company feel are worth taking on, and so on.
I mean, from a business point-of-view, if you knew there was a higher chance of a risk occurring, would you still insure said risk knowing that the likelihood is greater?

Sure there is a bit of capitalism involved but what industry doesn't have that mate? The bottom line is, no matter how complex the models and calculations are, most insurance companies will see a 20-year old in a VE SV6 Ute as a higher risk than one in a 2007 Camry, thus will be more willing to take on the kid in the Camry as it is a lower chance of occurrence in comparison to the kid in the Ute.
And if the kid in the Ute still wants to purchase the product, they are going to need to pay a higher premium for it, so the insurance company can comfortably cover the cost of risk transfer.

[vicarious]

Whatever. Sister used to work for one of the biggest insurers in the country (NRMA) and it isn't just a "story". It's based on the risk the insurance company takes to insure the vehicle.

It's not stats about specific models (i.e. VY Series 1 Senator Signatures) - it's about the amount of HSV claims in the area. THAT'S how risk is worked out.

so if thats the case if for eg. ring aami for a quote say on a monday with the details & then ring on the wednesday the quotes would be different and i mentioned this to my mum & she said nothing has changed then as she used to work in insurance back in the day.

[gopher]

I bet those statistics are 1980 corolla's who pay 3rd party not comprehensive... Its a ####in joke..

probably more to do with being a p plater driving a ute i would think
a few years back i went from a vt sedan paying just over $300 for full comp to paying more than $800 for a 1 tonner
reason i was given was it was a ute and therefore was involved in more claims statistically
not much i could do though

[Reaper]

Hey, just for a change its someone complaining about insurance.

So I purchased my Ute brand new at the end of last year, Age 19 just gone green P's... As you do i purchased AAMI's full comprehensive cover for about $1950 for 12 months...

This brings me to today, came home to a letter from AAMI, I knew it was for insurance so I expected $1950 at the most and hopefully a nice drop...$2320 for 12 months.



A ####ing increase of almost $400 in just a year, I have NOT made any claims, let alone contacted AAMI in the past year. Called them up and the best they could come up with was that STATISTICS are the reason my cover has risen.

I bet those statistics are 1980 corolla's who pay 3rd party not comprehensive... Its a ####in joke.

/end rant, Sorry.

Considering the amount of cars written off via flooding and other natural disasters over the last 12 months it's hardly surprising premiums are on the rise.

Reaper

[gopher]

Considering the amount of cars written off via flooding and other natural disasters over the last 12 months it's hardly surprising premiums are on the rise.

Reaper

yeah but how many actually got paid out?

Whatever. Sister used to work for one of the biggest insurers in the country (NRMA) and it isn't just a "story". It's based on the risk the insurance company takes to insure the vehicle.

It's not stats about specific models (i.e. VY Series 1 Senator Signatures) - it's about the amount of HSV claims in the area. THAT'S how risk is worked out.

how naive are you?

[Reaper]

yeah but how many actually got paid out?

Compared to any other year in living memory??? Tens of thousands extra.

Reaper

[the_trademarc]

yeah but how many actually got paid out?

We paid out around 37% over budgeted Claims, which equated to something like 3-4 mill over budget.

And Reaps right, the mass of Claims paying out means reinsurance premiums will go up, which will be reflected in the annual premiums of the majority of insurers' products.

[Pickle']

My insurance this year went from $2520 down to $2064, they dropped my agreed value down $2000 (which is fair) so i called them back and had the value put back up. this then bought my insurance down to $2020.

Please explain to me how increasing my value some how lowers the RISK therefor making my insurance lower... All this proves to me is its all a load of shit and they will make you pay whatever they like.

Sorry to say, but you need insurance. I would look around in your case but it needs to be paid. Its bullshit but it happens/

[HamaTime™]

It's not dodgy. It's all based on risk, and risk is based on stats. You're now a higher risk to the insurance company. Hence the higher premium. It's actually very easy to understand.

Whatever. Sister used to work for one of the biggest insurers in the country (NRMA) and it isn't just a "story". It's based on the risk the insurance company takes to insure the vehicle.

It's not stats about specific models (i.e. VY Series 1 Senator Signatures) - it's about the amount of HSV claims in the area. THAT'S how risk is worked out.

It's about 40% based on risk taken by the insurer and 60% on generating income. Insurance companies pay out claims at a tenth of the income they bring in. Large companies are always looking to make more profit, no matter what industry, it's just good business.

[greenacc]

Whats budget got to do with any of this ? So the Actuaries didn't predict the flood, that's their problem.

[Reaper]

Whats budget got to do with any of this ? So the Actuaries didn't predict the flood, that's their problem.

WTF??? Budgets and contingencies have everything to do with it. No statistical analysis or budget = no insurance company very quickly.

Reaper