Car Insurance Comparison – Home, Life, Business & Travel Insurance Quotes

you’re not the only person

With Coles recently launching their own brand Car Insurance product many consumers have started to assume that Woolworth must too have a Car Insurance product.
What is interesting is that there has been no advertising or even hint of this product.
This says a lot about the first competition between these two rival supermarket giants. If there is Coles car insurance then surely there is Woolwoths car insurance….

At Zippy we expect this too. The mostly likely companies to provide the back end for this product are the Hollard Group or A&G Insurance Services. However we’ve not rules out one of the encombant Australian companies getting in on the white label insurance act.

In any event competition is a sign of a healthy marketplace and brands like Virgin, Australia Post, and Coles all have the power to attract customers against the major insurance companies.

You can Apply for your Insurance here by clicking here.

A NEW PLAYER

Australia Post has become the latest player in the Australian insurance market. They started offering their customers car insurance as of 1^st September. The move has surprised many, but clearly shows that they are not prepared to limit themselves to product lines based on their name.

Australian swimmer and Olympic gold medallist Giaan Rooney will continue her relationship with Australia Post, although now as the face of the car insurance product line. Another partner is A&G (Auto & General) Insurance Services, who will be underwriting Australia Post’s customer’s policies. A&G Insurance Services are owned by South African giant, Budget Insurance, and will partner with Australia Post on a revenue sharing basis.

Australia Post has three car insurance products planned – comprehensive, third party fire & theft, and third party property. They plan to market the products through their extensive branch network, which now consists of close to 5,000 branches, with the final sales and services will be via telephone and internet. For this, Australia Post has copied the model of a successful venture into the insurance market made by Royal Mail in Britain.

Australia Post’s head of financial services, Andrew Wiseman, said that it was a natural fit for Australia Post to move into offering additional financial services, considering that they already handle tens of billions of dollars in payments and money transfers every year. But he stopped short of declaring it would be one of the cheaper insurance options in the market, instead choosing to call their car insurance “competitively priced” and “affordable”.

NOT THE ONLY ONE

In what can only be described as a massive industry shake-up, Australia Post is just one of a number of businesses looking to make their move into the Australian insurance market. The insurance market is estimated to be worth between $25 billion and $30 billion dollars a year, and its limited number of competitors means that there is plenty of cake to share around.

Richard Branson’s famous Virgin group of companies have already got the jump on Australia Post, with Virgin Insurance having launched an online service. The move was based on estimates that 1.2 million motorists a year looked for a better insurance deal, for which they initially plan to offer car insurance and then move into other areas. Owners of an impressive website, South African owned Real Insurance are another company to make the move into the car insurance market recently.

Woolworths also has plans to join the market, following in the footsteps of their main supermarket rival, Coles. Coles will be trialling offering customers home and contents cover along with car insurance in 29 of their Tasmanian supermarkets and service stations. Like Australia Post, a copy of overseas business models will be used, with Coles looking for a successful result similar to what Tesco achieved in Britain. If the six month trial goes to plan in Tasmania, Coles will launch a national rollout shortly after.

MOVE OVER BIG BOYS

The Australian insurance market is heavily dominated by a couple of big players. Insurance Australia Group, with its brands NRMA, SGIO, SGIC and State Insurance, are one of the two big guns in insurance. The other is Suncorp, who own GIO, AAMI and Vero, as well as niche brands Australian Pensioners Insurance Agency, Shannons and Just Car.

Insurance Australia Group, Suncorp and another big player, Allianz, occupy almost three quarters of the overall insurance market in Australia. But for car insurance, the big two have an even greater share, dominated their competitors and having an estimated 75% market share.

In fact, the twelve biggest car insurance brands are owned and operated by Insurance Australia Group and Suncorp. It is statistics like these have fuelled the desires of the new entrants into the car insurance market. The car insurance market is worth $5.5 billion annually, meaning that making even a small dent into the big two’s market share could return a handsome profit.

INTO THE FUTURE

Australia Post don’t intend to stick solely to car insurance, with plans already in place for expansion into the travel insurance and home and contents insurance sectors later this year. They have also stated that their ever-expanding business model will not stop with insurance, prompting speculation of a move into the banking industry.

If they were to move into the banking industry, mortgages and deposit taking are considered the products they would introduce. But for these, a banking licence would be required, and this is a process that would normally take at least six months. So far, the Australian Prudential Regulation Authority has been unwilling to comment on whether Australia Post has already applied for a licence.

Australia Post’s Andrew Wiseman stopped short of denying the future possibility and instead chose to state that there were no such current plans on the table. This can be translated into meaning that they have discussed it and there are plans to examine the feasibility of a move in the near future. A move by a postal company into banking would not be unique, with our close neighbours New Zealand already experiencing the move when Kiwibank was launched by New Zealand Post.

WILL IT WORK?

Ultimately, people are wondering whether Australia Post’s move into car insurance will be a successful one. Andrew Wiseman is quick to point out the success of Royal Mail’s move in Britain. It is estimated that one in every 50 cars and one in every 200 homes are now covered by ‘postie’ insurance.

In fact, many postal agencies across the world have made a successful expansion into insurance, with organisations from countries such as Singapore, Italy, France, Germany and Japan enjoying positive results. Andrew Wiseman notes that the success of the model overseas gives them real confidence.

They should also gain further confidence from the fact that they are partnering with A&G Insurance, who have become known for specialising in partnerships. Plus, when you factor in their extensive branch network, many people are crying that they may have an unfair advantage in the insurance market due their large distribution network.

The branch network is larger than the combined branch networks of the four major banks. It is also responsible for processing more than 90% of Australian passports and handles 117 million transactions each year worth around $83 billion. With their huge existing customer base, they have the power to be successful in any form of product distribution and will undoubtedly give the insurance market a real shake-up.

It is the opinion of many that moves into financial markets have been forced upon Australia Post, as their traditional line of business has been deteriorating due to the advance of technologies such as e-mail. Since they are entering an untried market, they are not making any predictions of success at this stage. But given that they have a great platform to launch from; Australia Post has surely made the right move into the car insurance market. It should also be good from a consumer point of view, as the increased competition should translate into cheaper and better car insurance.

Continued from Essential Car Insurance Tips – Part 1

The risk from non-disclosure isn’t solely limited to the original insurance application or phone call. It covers the life of the policy, meaning you should always be honest with the insurance company for as long as you wish to maintain car insurance.

To ensure that your coverage remains valid, remember to notify the insurance company if any of the following points occur or change during the policy period:

• You are convicted of a criminal offence or are charged with a serious crime such as fraud.

• The car storage location changes. A common instance is another car being purchased which takes over the prime storage position in the garage, relegating the insured vehicle to another less secure location.

• The main driver of the car changes. An example would be the husband getting a new job which and is provided with a company car, passing the old car on to his wife or children to use.

• Another person will become a frequent user of the vehicle. Maybe a relative has come to stay for a few months or one of your children gets their licence.

• You receive any traffic infringements, including the smallest of speeding fines.

• Any modifications are made to the vehicle, whether they are performance related or cosmetic. Even a paintjob could make a car more attractive to thieves.

• The car will be stored at a different location, whether you change permanent address or decide to store the car at your friends house for a while.

• Your insurance record changes, such as changes to ongoing activities with other companies for insurance products such as home or employment insurance. This could include having a claim rejected, insurance cancelled or being declined for an insurance application that your car insurer may feel is relevant.

• The car changes from being used predominantly for business to being mainly for personal use, or vice versa. This is common when someone receives or loses a company car, or changes jobs.

• You change jobs. There may be instances where your new job requires you to cart tools or office equipment around, making your car appeal more to thieves and become a greater insurance risk. Also disclose what will be kept in the car, in the event your items are stolen from the vehicle and you need to make a claim

• You change tyres on your car. Although this is a rare occurrence, sometimes the insurance company doesn’t provide cover on certain types of tyres. It’s always better to be safe and check that they are happy with what you have put on.

• Your annual mileage estimate is turning out to be horribly wrong. When getting a new car, it is extremely hard to estimate how many km’s the car will travel each year. But if you estimate 5,000km and halfway through the year you’re already above 10,000km, then make a call to the insurance company and update your estimate.
  

Apart from the disclosure aspect to keep the policy in force, there are a number of general factors to keep in mind as well. Whilst the policy is in place, remember the following points:

• Do not keep a spare set of keys in the car. If the thieves smash a window and break into your car, it will be very easy to steal. You will be deemed responsible to cover the car loss yourself by the insurance company.

• If you leave the vehicle briefly, such as rushing back inside your house to grab something you have forgotten; remember to lock your car and take the keys with you. This can be construed as negligent and the insurance company may have a right not to pay your claim if the car is stolen.

• Keep the car in a roadworthy condition. One commonly overlooked roadworthiness aspect is tyre tread levels. If the tyres go bald, this is a road hazard and your car is more likely to be involved in an accident. Don’t neglect other areas of the car and keep them in a roadworthy condition as well.

• Avoid alcohol and drugs. It goes without saying that driving under the influence is the wrong thing to do, but many people wrongly assume they are ok to drive the morning after a heavy drinking session. Alcohol can take up to a day to be eliminated from the system and drugs even longer. Always make sure you’re in peak physical condition before driving a motor vehicle.

• Don’t let other people drive your car. Although most policies allow an un-nominated driver to take the wheel on the odd occasion, you may run into problems if it turns out your ‘friend’ has had multiple drink-driving offences or has been banned from driving, even if you didn’t know about it.

• Never commit a criminal offence with or whilst using the car. Insurance companies do not have to pay for a claim where the car was being used illegally or for unlawful purposes. This could include driving recklessly at high speed or doing a burnout, or even transporting some hooch in the boot of your car.

• Ensure your registration and licence are up to date and valid at all times. An unpaid registration renewal or speeding fine could result in your licence or registration being suspended, until the outstanding amounts are paid; rendering your insurance temporarily invalid.

One last tip from the buyer’s side of things – Always remember to double check your policy after receiving it in the mail. Even a small typing error or the wrong category being selected could mean your insurance cover is invalid.

Happy motoring and drive safely.

When it comes to car insurance, we all want to save a buck or two and get the best price possible. Unfortunately there are a large number of people willing to overstep the boundary lines and declare false information to the insurance companies, in an attempt to save a few dollars on their premium.

Although it seems as harmless as sneaking food into the cinemas, there is a great risk that in the event of an accident or theft, the insurance company may decline your insurance claim. There is no point in playing Russian roulette with car insurance.

Heavily maligned for rejecting insurance claims, people don’t realise that even a seemingly trivial non-disclosure means a greater risk for the insurance company. They have the right to charge a suitable premium to cover their risks and when they are not fully informed it could result in a loss to their business.

Just as you would like to be informed if a beach you’re swimming at has an extensive history of shark attacks, the insurance company would like to know about all potential risks before they hit the waves.

To prevent a situation occurring where the insurance company may have to decline your insurance claim, it is always better to be honest and disclose all of the necessary information about your situation. Here are a few tips to keep you out of trouble:

• Disclose all criminal convictions, although they might not seem relevant or are embarrassing to reveal.

• Advise them of the correct location at home where the car will be stored; be it locked garage, carport, driveway, front lawn or the roadside kerb. Don’t just say the car is being kept in a locked garage just because you have one. Make sure it will actually be stored there and not on the lawn because the garage is full of boxes or being used as a playroom.

• Put the main driver down as the person who will actually be the main driver of the car, not another person to cover when the main driver is young or inexperienced. When a new car is purchased and insured in an adult’s name with a 17 year old magically put on the policy, its pretty obvious to the insurance companies what is happening. Trying to save a few bucks or trying to get insurance when you don’t qualify is just not worth it.

• Disclose the names of all people who will be driving the car. Do not attempt to avoid putting someone who will knowingly be driving the car on the policy, when you know they have a chequered driving history.

• Reveal every single traffic offence, no matter how minor it is; and disclose all speeding fines, loss of points, licence suspensions and other major incidents. Most people can’t remember their full driving history, so it is always wise to obtain a copy from your local motor licensing department to make sure all traffic offences are disclosed.

• Advise the insurance company of all modifications to the motor vehicle. This should include everything that is not factory standard. Different mods could make the car more attractive to thieves and present a greater theft risk, or they could change the performance or safety of the vehicle and increase the likelihood of an accident. Non-disclosure of modifications is a serious issue for insurance companies and needs to be addressed.

• Check to make sure that the insurance company has the correct car details on file. Some car manufacturers can make between 10-20 versions of the same model car, with small differences such as A/C, electric windows, sports bumpers or extras packages. Advising of the basic no frills purchase rather then your kitted out machine to save some money could be disastrous if the car is written off.

• Declare all of your past insurance history including rejected claims, cancelled insurances and whether you have been declined for insurance.

• Reveal what the vehicle will really be used for and whether it is for business or personal use. This is a category that many people feel they can lie about to get away with a cheaper premium or claiming some of the cost as a tax deduction. But the true use is important, as is knowing what may be carried inside the vehicle if it is used for business purposes.

• Advise the insurance company of your nature of work, regardless of whether the car is predominantly used for business or personal use. Certain jobs may have an effect on the premium even if the car is only being used to drive to and from work.

• Provide the correct address of the main place where the car will be kept. Often people put the address of their friend, relative or one of their investment properties located in a more affluent area, in order to get a cheaper premium. Although the suburb may have less car thefts, if it does occur, you could have a tough time explaining why it was being stored in the suburb it was stolen from.

Many claims have been rightfully rejected due to motorists providing false or misleading information, so always make sure you’re honest and the problems should pass you by. If you try and save a bit of money by not disclosing items such as mods, points or speeding fines, it may cost you a lot more in the long run if you’re caught out. It’s just not worth the risk.

Continued at Essential Car Insurance Tips – Part 2