Car Premiums Level Out But Some Charge More Than Others
The Age
Monday March 25, 1996
EVERY one who insures a car should review the policy each year. A comparision of car insurance premiums for an ``average car" has found that, for some drivers, costs have come down.
So it pays to find out if you are in that group.
Victoria's leading car insurers were asked for quotes to comprehensively insure two typical family cars.
The premium examples below are for a 40-year-old, rating- one driver who owns a Holden. The other is a 25-year-old, rating-one driver who owns a Toyota.
Of the insurers surveyed before for these two class of drivers, GIO's premiums have fallen over the past 12 months for both, as have NRMA's. But AAMI's premiums have gone up.
Generally, the divergence evident in previous surveys has disappeared as premiums of different insurers level out.
In some cases, not only has the cost fallen since the last survey over a year ago, but often the difference in cost between insurers for the same car can be significant.
For example, AAMI is cheaper than GIO when it comes to older driver. One reason for the adjustment in premiums is because insurers have been fine-tuning and recategorising the level of risk attributed to various vehicles. However, not all drivers will be charged less.
At the high end of the luxury market, premiums increased.
Also, the premium you pay will be influenced by where the vehicle is garaged. Suburbs with higher incidences of theft may face higher costs.
Age will also influence the cost of car insurance, the survey showed. And poor drivers - whatever their age - will usually pay more if the insurer is prepared to put them on their books.
Most insurers are providing value-added benefits for good drivers. For example, if you have been a rating-one driver for three years or more, AAMI will keep you at that level for the rest of your life even if you later have an accident.
In other words, to receive that benefit, you would have been claims free for at least eight years.
Another difference in prices is the cost for waiving the basic excess, which is $400 in all cases. For zero excess, AAMI's additional charge is $120, while NRMA's charge is $110 and GIO's is $160.
RACV does not have an additional flat charge to eliminate the excess. That charge can vary between $145 and $160, depending on where the vehicle is garaged.
© 1996 The Age