Millions may be overpaying for insurance as $500 discovery is made by Aussie driver
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Navigating the insurance world can often feel like a maze, with premiums fluctuating and the fine print getting finer.
It's no wonder that insurance bills can be a source of significant stress for many Australians, especially those of us in our golden years.
With costs for home, car, health, and other forms of insurance soaring in recent years, it's crucial to stay vigilant about where our hard-earned money is going.
One Melbourne-based driver, Greg Schrader, was taken aback by a startling discovery that has sparked a warning for millions of Australians.
Schrader, curious to see if he was getting the best deal on his car insurance, decided to conduct a little experiment.
His Ford Ranger was due for insurance renewal, but rather than automatically re-signing, he decided to test the waters.
Schrader created a fake quote with AAMI, using all his own details except for one—he listed a house just a few doors down from his own as his place of residence.
The result is the quote came back at $1,250 for the year, a whopping $500 cheaper than his current policy.
Despite making no claims on his car, Schrader was puzzled by the significant price difference.
This eye-opening experience serves as a timely reminder to shop around and not simply settle for the renewal notice that lands in our mailbox.
'Pick up the phone, go online, do your due diligence, do your research,' Schrader advised.
He's not alone in his call for consumers to be proactive. Financial experts, including David Koch, urged Australians to treat insurance shopping with the same scrutiny as grocery shopping.
'We all know that the lesser-known sauces and the home brand spices all taste just as good as the products with big names and even bigger advertising budgets,' he said.
'Most of us are willing to give a different olive oil a go when the price of our favourite variety reaches levels of insanity.'
'But when it comes to insurance, we quite like sticking to the same brand. They make us feel cosy, safe and looked after—because we have always been with them. Sometimes they pull at the heartstrings with their marketing campaigns.'
'Maybe we believe that our loyalty will somehow be rewarded through better discounts. The sad reality is loyalty usually doesn’t pay.'.
The insurance industry is complex, with policy quotes based on a myriad of factors, including risk assessment, claims history, specific address, driver age, and vehicle type.
But with annual car insurance premium renewals having jumped 58 per cent from the previous year, it's clear that something is amiss.
While natural disasters and construction costs have been blamed for hikes in home and contents insurance premiums, the reasons behind the steep increase in car insurance costs remain less clear.
The financial strain of insurance is leading some Australians to make drastic decisions.
Finder research found that 16 percent of people—equivalent to 3.3 million Aussies—planned to cancel their health insurance policies by 2025.
Additionally, some have downgraded their home insurance policies or ditched travel insurance to save money.
As seniors, ensuring we're not overpaying for insurance is especially important.
It's worth taking the time to review your policies and compare the market. Y
You might be surprised at the savings you can find, just like Greg Schrader did.
Credit: TikTok
Have you had a similar experience with insurance premiums? Or perhaps you've found a great way to save on your policies? Share your stories and tips in the comments below.
It's no wonder that insurance bills can be a source of significant stress for many Australians, especially those of us in our golden years.
With costs for home, car, health, and other forms of insurance soaring in recent years, it's crucial to stay vigilant about where our hard-earned money is going.
One Melbourne-based driver, Greg Schrader, was taken aback by a startling discovery that has sparked a warning for millions of Australians.
Schrader, curious to see if he was getting the best deal on his car insurance, decided to conduct a little experiment.
His Ford Ranger was due for insurance renewal, but rather than automatically re-signing, he decided to test the waters.
A $500 difference in car insurance premiums was noticed by an Australian driver based on different addresses in the same area. Credit: David Gyung / iStock
Schrader created a fake quote with AAMI, using all his own details except for one—he listed a house just a few doors down from his own as his place of residence.
The result is the quote came back at $1,250 for the year, a whopping $500 cheaper than his current policy.
Despite making no claims on his car, Schrader was puzzled by the significant price difference.
This eye-opening experience serves as a timely reminder to shop around and not simply settle for the renewal notice that lands in our mailbox.
'Pick up the phone, go online, do your due diligence, do your research,' Schrader advised.
He's not alone in his call for consumers to be proactive. Financial experts, including David Koch, urged Australians to treat insurance shopping with the same scrutiny as grocery shopping.
'We all know that the lesser-known sauces and the home brand spices all taste just as good as the products with big names and even bigger advertising budgets,' he said.
'Most of us are willing to give a different olive oil a go when the price of our favourite variety reaches levels of insanity.'
'But when it comes to insurance, we quite like sticking to the same brand. They make us feel cosy, safe and looked after—because we have always been with them. Sometimes they pull at the heartstrings with their marketing campaigns.'
'Maybe we believe that our loyalty will somehow be rewarded through better discounts. The sad reality is loyalty usually doesn’t pay.'.
The insurance industry is complex, with policy quotes based on a myriad of factors, including risk assessment, claims history, specific address, driver age, and vehicle type.
But with annual car insurance premium renewals having jumped 58 per cent from the previous year, it's clear that something is amiss.
While natural disasters and construction costs have been blamed for hikes in home and contents insurance premiums, the reasons behind the steep increase in car insurance costs remain less clear.
The financial strain of insurance is leading some Australians to make drastic decisions.
Finder research found that 16 percent of people—equivalent to 3.3 million Aussies—planned to cancel their health insurance policies by 2025.
Additionally, some have downgraded their home insurance policies or ditched travel insurance to save money.
As seniors, ensuring we're not overpaying for insurance is especially important.
It's worth taking the time to review your policies and compare the market. Y
You might be surprised at the savings you can find, just like Greg Schrader did.
Credit: TikTok
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