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

ANOTHER NEW PLAYER

Just this month, the Australian car insurance market has welcomed another player into its ranks. Progressive Corp is a US car insurance company, and has launched a new internet based car insurance product into the Australian market. The name of the product is Progressive Direct; which has been used to describe its online nature and the ability to bypass call centres and perform every aspect of the car insurance policy online.

The Australian car insurance industry is dominated by two big players: Insurance Australia Group and Suncorp. These two companies control around 75% of the Australian car insurance market, through brands such as NRMA, RACV, GIO and AAMI, as well as a host of other specialist insurance brands.

This market domination; combined with a large market size and rising car insurance rates has spelled the perfect time for other brands to undercut the big boys and capture some of the market share. The entry of Progressive Corp into the car insurance industry follows hot on the heels of a few other major new entrants, such as Virgin, Australia Post and Real Insurance.

It may seem that Progressive Direct is going to have a tough time slugging it out with the other new kids on the block, but their innovative business model and strong financial backing indicate otherwise. Last week they secured an APRA (Australian Prudential Regulation Authority) insurance licence, which indicates they have a tremendous amount of capital behind the Australian venture. Strong financial reserves may allow them to undercut the other insurance companies in premiums to gain a substantial market share.

IS IT ANY DIFFERENT?

The major difference with Progressive Direct compared to the other car insurance companies is the ability to perform all facets of the insurance policy over the internet. This includes signing up and purchasing policies, managing the policy, and even making a claim online. However, call centre support will be available to customers if necessary; especially for large payouts and complex claims.

With almost every other industry listening to customer requests and transforming themselves into more online friendly models, Progressive Direct has taken the first step for the car insurance market. They are specifically targeting customers who prefer to bypass those half hour waits while on hold to call centres, especially for simple matters such as changing an address on a policy.

Online insurance is tremendously popular overseas; particularly in the US where the parent company Progressive Corp is based. They are the fourth largest US motor insurer and have developed a business model based online, which provides them with a superior claims management process and lower costs. Currently only 8% of Australian car insurance sales are made online, which presents Progressive Direct with an excellent opportunity to gain a substantial market share once more Australians make the move to cheaper and more efficient internet based car insurance.

Australians who already perform their banking online are just one of the groups who Progressive Direct will be targeting as their customers. Similar to internet banking, customers will be able to manage their accounts online and save significant money at the same time. With other aspects such as providing quotes and taking policy details no longer requiring expensive staffing costs, Progressive Direct has drastically reduced their overheads. Providing customers with retail outlets is also another major expense which they have managed to cut from their outgoings with an online model.

WHAT DOES THE FUTURE HOLD?

Although they will probably be operating with the least overheads of all the Australian car insurance companies, Progressive Direct are not expecting a sudden jump to the top of the car insurance market. Instead, they are planning to gradually build their market presence; but at this stage have not revealed their specific revenue or profit targets.

Progressive Direct’s initial focus will be on using digital advertising to build a customer base for private car insurance. From there, they will gradually expand into commercial, motorbike and other vehicle insurance categories. No plans are on the cards to move into the general insurance market; such as providing home and contents insurance. If the move was to occur, they would need to find another company to underwrite the policies, since the parent company Progressive Corp is a specialist motor insurer.

All in all, don’t expect Progressive Direct to tackle the big boys of motor insurance head on, but instead offer a great value for money product that will allow them to carve their own niche in the car insurance market. The entry of Progressive Direct into the Australian car insurance industry is great news for consumers, with its online business model sure to keep the premium hikes under control and possibly even trending on the decline.

Continued from What you should do after a car accident – Part 1

25 TIPS FOR AFTER AN ACCIDENT

• Never panic and leave the scene of an accident. It usually implies guilt and criminal charges may arise. Instead, turn off your vehicle and switch on your hazard lights.
• Assess both yourself and your passengers for injuries, then check the other vehicle’s occupants if necessary.
• In the event of an injury, call emergency services and attempt first aid measures.
• Move both yourself and your passengers to a safe area, most likely off the road and onto a verge or footpath.
• Do not discuss the accident with anyone and never admit fault in any circumstances. The only discussions you should have are to exchange driver details and collect evidence. If you have passengers, request them to not say anything to anyone.
• Do not move your vehicle from its resting position after impact. Also advise the other driver to leave their vehicle until details are recorded. If you have them available, cordon the accident scene off with traffic cones.
• If the accident does not involve another driver, such as hitting a parked vehicle, be sure to try and locate the vehicle owner and if unsuccessful, leave your contact details.
• If the driver of the other vehicle flees the scene of the accident or refuses to provide their details, call and notify the police.
• In the case of a major accident requiring assistance to move the vehicles, or where damage has occurred to public property such as traffic lights, call and advise emergency services.
• Although different states do not require police to be notified for minor accidents, it is advantageous to call them and to also file a police report. At the very least it will help speed up your insurance claims process.
• Exchange contact details with the other driver and record the conversation if possible. Having a record of them admitting fault or even just saying sorry is invaluable. Many people may claim a recording will be inadmissible in court without the other party’s permission, but the Listening Devices Act allows you to record a conversation to be used in a legal matter.
• If the other driver co-operates, be sure to get them to write a statement of their version of events. At the very least, try and make an audio recording of what they say after the accident.
• When gathering the other drivers details, request to see a copy of their drivers licence and record the details from there to prevent a false name being given. Take down their name, address, date of birth, driver licence number and expiry date from the licence, and also request their contact phone numbers in addition to the name and address of their employer, insurance company and insurance policy number.
• Take down the other vehicles registration number and registration expiry date, and photograph them if possible. Request to view a copy of the registration papers to make sure they are the owner of the vehicle. If not, ask them what their relationship with the driver is and if they have permission to be driving the vehicle.
• Note down details of the accident location and the time it occurred. The street address is important and noting weather and road conditions can be helpful too.
• Draw a diagram of the accident scene including car locations, the directions both cars were travelling in, skid marks, positions of impact and related vehicle damages. Take photographs of the accident scene and damage sustained to both vehicles where possible.
• Take a physical note of any injuries you and your passengers have sustained, as well as recording the apparent injuries of the other cars occupants. Photographs of injuries are once again handy. If you do not have any passengers with you, request a bystander or witness to take any photographs of yourself.
• Interview any witnesses to the accident, including passenger in both vehicles, either with a pen or recording device. It is even better if you can get them to write a statement of events immediately. Be sure to record their details and contact information.
• While the information is still fresh in your mind, write down your version of events and note down everything you saw, such as seeing the other driver using a mobile phone. By recording the time of the accident accurately, the police can check the other driver’s mobile phone records to confirm your claims. Other common faults to have noticed include failure to indicate or not using lights.
• Be wary of signs of the other driver being under the influence of alcohol or other drugs. Watch out for glazed eyes, loss of balance or co-ordination, and most importantly, the smell of alcohol or drugs. Take notes and report your observations to the police officers attending the crash scene.
• Check the other driver’s car for signs of unroadworthiness, as this may have contributed to the accident. Bald tyres are easily viewed and are especially dangerous in wet conditions. Other faults to keep an eye out for include broken mirrors or lights, provided they are not in the impact zone, cracked windscreens, objects blocking the natural view, and illegally lowered suspensions.
• Once all the necessary details of the traffic accident have been recorded, both you and the other driver may move your vehicle off the road. However, if it is not a minor accident, it is better to wait until the police arrive and give you and the other driver permission to shift the vehicles from the road.
• Call for a tow truck driver at your earliest convenience. If you do not have a preferred tow trucking company or they are unavailable to attend to your accident, make sure you negotiate hard with the first tow truck that arrives at the scene.
• After the accident, it is wise to visit a doctor for a check-up, even if you are not injured. Certain accidents will have post-traumatic symptoms and the doctors are best qualified to advise you of potential injuries and monitor your ongoing health.
• At your earliest convenience, notify the claims department of your insurance company about the accident, unless the accident is minor and you will pay for the damages yourself or come to an agreement with the other driver.

This is an exhaustive list and may take a while to memorise and implement. Some of the points listed may seem petty and unnecessary, but try telling that to someone who wasn’t at fault in an accident, yet failed to follow these procedures and ended up being found liable for the accident.

The world is in a sad state of affairs and the fact is that people have no problems lying to escape liability in a traffic accident. If you are not at fault in a traffic accident, it is always safer to assume that the other person will try to cheat and lie their way out being liable for the damages. So please take all necessary precautions to protect yourself in the event of an accident. Happy motoring and drive safely.

MAKE SURE YOU ARE PREPARED

Having a car accident is something that we all wish we could avoid for the entirety of our lives, but statistically, the majority of us will experience one or even multiple accidents in our lifetime. So apart from praying that we are never involved in a fender bender, we should all learn to be prepared for the event of an accident and know what to steps to take immediately afterwards.

Some of the steps you should take involve safety aspects, while others are primarily for financial reasons. If an accident is not your fault, you need to be particularly wary of the other party trying to absolve themselves of blame. It doesn’t matter whether the person appears trustworthy or admits to being at fault at the scene; situations can change dramatically after they have had time to clear their head.

Maybe the sweet and innocent young girl who ploughs into you will have a dad who is a policeman or lawyer and tries to manipulate the story to place you at blame. Or there could be the case of a guy who realises he will lose demerit points for the accident if at fault and therefore lose his licence and job. If you saw the statistics on people changing their stories after an accident, it would genuinely surprise you, so remember to be wary of the potential for this occurring and take measures to ensure it doesn’t happen to you.

10 TIPS FOR BEFORE AN ACCIDENT OCCURS

• Keep a record of important phone numbers such as police and emergency services either in your mobile phone or written down on paper.
• If your car is insured, keep a copy of your insurance company’s phone number, as well as your policy number. If your policy has restrictions on vehicle repair centres, be sure to carry a copy of the approved list with you as well.
• Locate a reasonably priced tow truck service and carry their contact numbers with you. Otherwise, the first available tow truck that arrives could cost around four times the standard price.
• If you have any serious medical conditions or allergies to medications, ensure you carry a medical information card on you at all times.
• Carry a torch or flashlight in your vehicle. This can prove to be very handy in the event of an accident at night.
• Carry a first aid kit in your vehicle. You never know when it might be necessary or end up saving either yours or another person’s life. Taking a first aid course is also of great benefit.
• Carry some small traffic cones. This is not a necessity, but can prove useful if a crash occurs in a high traffic area.
• Wear a watch or take a mobile phone with you. You may need these items to record the time if an accident occurs.
• Keep a pen and some papers in your vehicle. You will need these to record details and exchange information with the other driver or witnesses. Pens are notorious for the ink running out when you need them, so carry multiple pens or preferably use a multi-pen, such as one that has four colours to select from.
• Carry a camera and recording device in your vehicle. These are critical if you need to record evidence of the crash. Most modern mobile phones come with cameras, video recorders and sound recorders these days, so you may not need to carry those devices in your car. If you are worried about theft of your camera, you can always buy and keep a cheaper disposable camera to take accident scene shots.

Continued at What you should do after a car accident – Part 2

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.