Huge insurance cost rise?

[daves8]

I just got my renewal from AAMI.

Last year it was $1900 for an agreed value of $39k

This year they want $2900 for agreed value of $36k

I understand things go up in price, but 50% more than last year is a bit much

Is this happening everywhere or are AAMI just being clowns?

 

[J_D 2.0]

I just got my renewal from AAMI.

Last year it was $1900 for an agreed value of $39k

This year they want $2900 for agreed value of $36k

I understand things go up in price, but 50% more than last year is a bit much

Is this happening everywhere or are AAMI just being clowns?

Shop around. AAMI are owned by Suncorp who are notorious for smashing people with double digit premium increases. In my experience AAMI are normally one of the more expensive “general insurers”.

General insurers that try to appeal to run of the mill cars (AAMI, Budget Direct, NRMA, etc) normally don’t want to wear any risk and either outright refuse insurance to modified or expensive to repair cars or make it so cost prohibitive that you step off.

I was with Budget Direct for many years with my old SV6 and despite my clean driving record and previous insurance policies with them refused to cover my SSV because it’s modified.

I ended up with Shannons who do cover the modifications and at a decent agreed value. They barely increased my premium on my last renewal (about $1500 for $25k agreed value).

 

[Forg]

Shannons are also owned by Suncorp, but I've not seen a massive rise with our Shannons insurance ... I think it did go up 5%-ish & the agreed value went up by maybe 2%-ish, that was likely around the start of the year.

Every now & again insurance companies run an internal "audit" to see where they've been losing money & to check internal claims stats. It's possible AAMI have upped their premiums 'cos they've just realised they're getting a higher proportion of VF Calais claims than they used to, or the cost of Calais claims has gone up. I think this sort of stuff is normally being tweaked on a continuous basis, but every now & again they'll put in extra effort (plus I wonder if they normally have access to stats from other companies owned by the same parent-company?).

 

[J_D 2.0]

Shannons are also owned by Suncorp, but I've not seen a massive rise with our Shannons insurance ... I think it did go up 5%-ish & the agreed value went up by maybe 2%-ish, that was likely around the start of the year.

Every now & again insurance companies run an internal "audit" to see where they've been losing money & to check internal claims stats. It's possible AAMI have upped their premiums 'cos they've just realised they're getting a higher proportion of VF Calais claims than they used to, or the cost of Calais claims has gone up. I think this sort of stuff is normally being tweaked on a continuous basis, but every now & again they'll put in extra effort (plus I wonder if they normally have access to stats from other companies owned by the same parent-company?).

Seeing as they both have the same parent company they will probably be trying to indirectly push existing AAMI customers that really should be with Shannons over to the Shannons basket by “rating them out” as it were.

Despite both of them having the same parent company they will each have their own KPIs to meet and also their own workflows/specialties.

AAMI probably wouldn’t want to deal with what is now basically a classic car before it’s time in repair difficulty due to Holden shutting up shop and parts becoming rarer and rarer. On the other hand Shannon’s is used to dealing with exactly that.

 

[VS 5.0]

The premium on my VE SSV Z ($30k cover) was $750 at recent renewal last month.

Previous renewal last year was $690.

Home and contents was renewed in June with an increase of $220 but cover increased by $63k.

Both with RAC.

I thought they were somewhat reasonable compared to stories of rampant increases elsewhere.

 

[wetwork65]

I call them every year and ask for a better price.
I've found them to come to the party every time with the cars.
With the house plus contents, I managed to get the increase down to "only" 30% from last year. Going to another company would have been an even higher price, so I took the offer.
This part of Australia (Eastern coastal) is getting loaded up hard.

 

[Forg]

This part of Australia (Eastern coastal) is getting loaded up hard.

I actually suspect that the traditional Sydney Tax / Melbourne Tax is being spread out across the whole east coast, and places that had artificially low insurance premiums for competitive purposes (and were propped-up by Sydney & Melbourne prices) are getting bigger increases as their premiums come more in line with the Sydney & Melbourne ones. I say this because of the people I know, it seems to be those not in the country (plus Brisbane) with the biggest increases, in general ... not 100%/absolute, but generally.

This ain't what happened to daves8 as he's in Sydney.

 

[Smitty]

I just got my renewal from AAMI.

Last year it was $1900 for an agreed value of $39k

This year they want $2900 for agreed value of $36k

I understand things go up in price, but 50% more than last year is a bit much

Is this happening everywhere or are AAMI just being clowns?

.. just be glad you are not insured with SHANNONS
they are worse than that (as I found with my renewal, and so i am with GIO now)

 

[daves8]

Just did a quote with NRMA, and they want $1790 for Agreed value $37k

I’ll call AAMI. I have 4 policies with them. They can match or I’ll leave.

 

[Derekthetree]

I thought they were somewhat reasonable compared to stories of rampant increases elsewhere.

I bet given the widespread media coverage, insurance companies are trying it on (more than usual) to get those margins up.

To be honest, the gouging here is less than the UK. I'd change company every year due to massive increases.
I've insured with the same two companies for both cars here for the four years I've had them.