Insurance is getting out of hand

[raynewman]

Last year my 2020 LR3 was insured with APIA for $961; this year they want $1165 (an increase of 21% - no claims etc).
They also decreased the 'Amount Covered' by 10%. That all smells of daylight robbery.
I have a replacement quote from Allianz for $880 with an increased 'Agreed Value'.
Guess where it's going to be insured.

 

[paulp]

I rarely use the same car insurer year after year. They all seem to impose a significant loyalty tax. Doesn’t seem to be as bad in the property sector.

 

[caskings]

Check out comminsure as well, I found them to be much cheaper. YMMV.

 

[moa999]

Anything under $1000 is a very good price anyway.
As above it pays to check as many as you can every year.

 

[DayTrippin]

I feel your pain here in the US but if my insurance was as cheap as yours, I'd be happy as hell. Our latest rates just went up 30%. No accidents in year, no driving violations, live in a super safe area, lots of experience and combining our insurance with our home policy which reduces rates and we get a multi-car discount.

For comparison we were paying $450 US every month ($5,400 per annum) for a Model 3 LR and a Model S Plaid. The Plaid is cheaper to insure than the 3. It just went up 30% over that. I am obviously shopping insurance companies again to see if we can do any better.

 

[cafz]

For comparison we were paying $450 US every month ($5,400 per annum) for a Model 3 LR and a Model S Plaid. The Plaid is cheaper to insure than the 3. It just went up 30% over that. I am obviously shopping insurance companies again to see if we can do any better.

Presumably yours include third party personal injury coverage though? When people quote insurance here they're usually just talking about first- and third-party property coverage, fire and theft. Personal injury coverage is handled separately, usually as part of the yearly registration process (it tends to be somewhere around $600, because a lot of medical expenses would be expected to be covered by our Medicare system).

 

[PC__LoadLetter]

Last year my 2020 LR3 was insured with APIA for $961; this year they want $1165 (an increase of 21% - no claims etc).
They also decreased the 'Amount Covered' by 10%. That all smells of daylight robbery.

Reducing the amount covered is automatic. Cars depreciate. Replacing like for like (e.g. a well-used 2020 car for another well-used 2020 car) is cheaper than replacing it with a new one. Usually. You can get a 2020 Model 3 LR for $55-61k on carsales. Or go new for $74k. Your agreed value should be somewhere between those numbers.

I have a replacement quote from Allianz for $880 with an increased 'Agreed Value'.
Guess where it's going to be insured.

This is called the loyalty penalty, loyalty tax, or lazy tax. Always shop around at renewal time, as you did. And then call the current insurer, tell them what you found, and suggest they match or better it.

 

[PC__LoadLetter]

because a lot of medical expenses would be expected to be covered by our Medicare system).

It's illegal to sign a medicare claim form for a motor vehicle accident where your CTP payout is over $5k. If you claimed medicare rebates on any doctors visits prior to the payout, you have to go back and repay those gap amounts.

 

[AUSEd]

I rarely use the same car insurer year after year. They all seem to impose a significant loyalty tax. Doesn’t seem to be as bad in the property sector.

What Tesla do you have?

The 3P and YP are a lot more savage to insure. Some companies flat out refuse. In QLD RACQ hates Teslas as evidenced by their quotes on them. Even a 3 RWD

 

[paulp]

What Tesla do you have?

The 3P and YP are a lot more savage to insure. Some companies flat out refuse. In QLD RACQ hates Teslas as evidenced by their quotes on them. Even a 3 RWD

Model S 75d. Plenty of companies refuse to insure the model s as well

 

[AUSEd]

Model S 75d. Plenty of companies refuse to insure the model s as well

At least you have a HUD

 

[paulp]

At least you have a HUD

The HUD is not on my tesla. Its on my other ev

 

[PC__LoadLetter]

At least you have a HUD

You mean a binnacle?

 

[DayTrippin]

Presumably yours include third party personal injury coverage though? When people quote insurance here they're usually just talking about first- and third-party property coverage, fire and theft. Personal injury coverage is handled separately, usually as part of the yearly registration process (it tends to be somewhere around $600, because a lot of medical expenses would be expected to be covered by our Medicare system).

Basically, the amount I quoted provides for liability coverage of other people, their vehicles or property, collision coverage to repair my car if in an accident, and comprehensive. The last covers losses such as theft, fire, vandalism or basically anything other than being in an accident.

You can pay additional for medical coverage if you, or someone else is hurt. That is really expensive and I don't carry it based on the price to benefit ratio. The comprehensive and collision parts of my coverage are the most expensive. Part of the cost is there are so many lawyers in the US. Last time I looked there were more lawyers than any other country in the world at about 1.26 million. Basically, about 7% of all the lawyers in the world are in the US. I think most of them are chasing personal injury claims from car accidents.

Always interesting to compare insurance coverage in other areas around the world.

 

[cafz]

It's illegal to sign a medicare claim form for a motor vehicle accident where your CTP payout is over $5k. If you claimed medicare rebates on any doctors visits prior to the payout, you have to go back and repay those gap amounts.

TIL!

Not even sure about the $5k limit, the NSW government just flatly says:

If you have been injured in a motor accident, the costs of your medical treatment are not covered by Medicare.

 

[cafz]

Basically, the amount I quoted provides for liability coverage of other people, their vehicles or property, collision coverage to repair my car if in an accident, and comprehensive. The last covers losses such as theft, fire, vandalism or basically anything other than being in an accident.

Ahh yeah well that's the same coverage people are comparing here then. It's also called "comprehensive", I just wasn't sure if that term was in use everywhere.

You can pay additional for medical coverage if you, or someone else is hurt. That is really expensive and I don't carry it based on the price to benefit ratio.

Aren't you at least as likely to run up massive bills if you injure someone in an accident as if you damage their car?

 

[Goneincognito]

I'm looking at quotes at the moment and the best ones are in the $1200-$1600 range for full comprehensive with glass coverage.
The worst are $2-3k+

 

[Power Hungry]

Okay I'm an old bloke with no claims and no infringements for quite a while but I was impressed with Suncorp Insurance for our MYLR. I have Windscreen and Glass covered, Hire car after ANY event and LIFETIME new for old. All for $1260.

 

[DayTrippin]

Ahh yeah well that's the same coverage people are comparing here then. It's also called "comprehensive", I just wasn't sure if that term was in use everywhere.

Aren't you at least as likely to run up massive bills if you injure someone in an accident as if you damage their car?

Injuries are such a lucrative area of law here that it is almost insane. So yes, injuries can be an issue and also rife with fraud here. Fortunately cars are pretty well built and injuries seemed to be lessened in a lot of cases. At the same time hospital visits are expensive. I had surgery about 2 years ago on my shoulder and the bill was over $120k US. Fortunately my part of the bill was only about $4k. I was able to choose a great doc and had excellent care throughout and an excellent good outcome.

I contrast that with when I was living in Austria and got stuck with whatever doc was basically on rotation if I wanted my care to be covered by the gov't's plan. I didn't have enough money at the time to pay for a private doc and I got what I got if you know what I mean.

 

[Hungry Mile]

Okay I'm an old bloke with no claims and no infringements for quite a while but I was impressed with Suncorp Insurance for our MYLR. I have Windscreen and Glass covered, Hire car after ANY event and LIFETIME new for old. All for $1260.

Same. They were good for my first year but the premium went up substantially in second year (No claims or infringements) so switched to a competitor.