Car Insurance Comparison Lead To Major Reductions For Motorists
Websites comparing car insurance rates are facing a difficult task because some insurance companies prefer not to divulge their rates in order. Comparison of rates may place some insurance providers at a disadvantage because consumers would go for cheaper insurance. Doing so can save them thousands of dollars every year, which means a potential loss to companies who are not offering competitive rates.
Former insurance executives are using their insider knowledge to launch Australia’s first website showing car insurance league tables with the inclusion of the big insurers. An important disclosure reports that many insurance companies are relying on policy renewals by about 80% of the total number of consumers, who stay with the same insurer because it was too much of a hassle to shop around for other alternatives.
The car insurance industry is fearful of the effect of websites focusing on car insurance rates comparisons. They specifically disallow competitors to use their websites to get quotes to be used for comparison. The only recourse left is to come up with a good estimate based on research and insider’s knowledge of how car insurance is priced.
In the UK where a similar league table has been publicized for almost ten years now, only 40% of consumers remained with the same provider through the years. Many have taken the initiative to go out of their way to look for cheaper alternatives. Many motorists are paying 50% less than the price paid by Australians. A clear example of this is that a driver below 25 in Parramatta will need to cash out $2304 with Budget and $3864 with Westpac in order to insure the country’s favorite car, the Toyota Corolla. However, the actual quotes are priced between $2209 with Budget and $3812 with Westpac, a substantial difference in the amounts that could be have been much needed savings for many motorists.
With research and the use of car insurance comparison sites, motorists could slash around $200 to $300 from their bill. The service can extend to very town and suburb in NSW and cars as old as two years old. Older models may still be in the process of being added. The reason why there is so much disparity is that because for the longest time, insurance companies are able to get away with it. For the same risk, the price should also be the same. However, insurance providers claim that their particular brand is more valuable. Hence, consumers need to be more mindful on how they send for their car insurance to get the best premium rate.
Competitive Car Insurance Market with the Entry of Kmart
Venturing into the $24 billion personal insurance business is none other than Kmart, which will launch its latest product range to consumers with its 258 tyre and auto repair shops. Myer is also set to come up with plans to compete with its own products.
This marketing move of Kmart to offer car insurance is geared towards getting a big portion of the insurance market. Its parent company Wesfarmers will have a significant role to play in the process. As of now, the conglomerate based in Perth is the fifth biggest insurance provider in Australia including its more popular brands of OAMPS, Lumley and Wesfarmers insurance.
In fact, the company was able to amass a whopping $868 million worth of revenues by its insurance operations from the period of six months to December 31, 2009. This was made possible as personal insurance has become highly competitive in the last few years.
Australia Post has even joined in on the insurance business in September last year with its latest product of car insurance products. Fellow Wesfarmers affiliate, Coles supermarkets strives to keep up with its trial insurance business for its stores in Tasmania.
Myer will soon unveil its own product before the year’s end through the loyalty card, Myer One, provided by the department store. It is known that the personal insurance market is significantly dominated by the two largest players, Suncorp and IAG. Between these two companies, they control about 60% of the entire market. In particular, car insurance is tightly guarded with 1.2 million in Australia wanting to change their insurance providers every year. This number is a significant percentage to total registered motorists in Australia totalling to about 10 million.
For sure, car insurance in the country will be very competitive, which could be good news for motorists with wider choices that will meet their differing needs and budget.
Car Insurance Providers Take Note of the Top 10 Dangerous Drivers
In the car insurance business, providers look into the driving profile of various drivers to ascertain as to which category they belong to. The price and scope of coverage differ based on the category of the insured drivers. A recent study conducted by the US insurance company, insurance.com found that lawyers and judges top the list of the top 10 most dangerous drivers categorized by profession. This comes as a surprise because you would attorneys and judgers to be more sticklers in following road safety rules.
The study is based on the claims of applicants regarding their car accident history when asking for a car insurance comparison quote on the aforementioned website. Before you could get a quote, you would have to provide certain information regarding your driving record. A high percentage of 44% of attorneys have disclosed a previous car accident. Financial professionals are second on the list tailed by government workers. Athletes are the least dangerous with only 17% who have reported previous car mishaps with homemakers garnering 24%.
According to the study, the top 10 most dangerous drivers based on profession are as follows:
1. Attorney/Judge
2. Financial professionals
3. Government worker
4. Bartender or waiter
5. Business professionals
6. Dog groomer
7. Marketing/advertising professionals
8. Barber/stylist
9. Coach
10. Nurse
The findings show that professionals are more prone to having car accidents because they often bring their work while driving. They often multi-task like talking over the phone while on the road and rushing to meet appointments. Their profession gives them a lot of distractions, which can easily translate to accidents. Actually when it comes to distractions, homemakers have a lot to deal with while behind the wheel. However, since children are onboard, homemakers practice the utmost caution. In most cases, both athletes and homemakers avoid the rush hour.
New Car Insurance Product With Unique Features
A new car insurance product is being introduced to the market by Coles with the support of its owner conglomerate, Wesfarmers Ltd. To attract more customers, Coles provide insurance that allows their clients to increase their standard four cent Coles fuel discount receipt up to three times. Customers can do this once a month for one year. This may seem minimal but seen cumulatively offers a substantial amount reduction in driver’s fuel costs.
In addition, the insurance also stipulates that a lifetime guarantee on repairs by authorized car repairs companies can be included in both the standard and flexible cover features. This is very attractive to motorists who constantly have to deal with the stressful negotiations when it comes to car repairs.
For those customers who will buy a comprehensive cover, they can also have their groceries insured if these are damaged in a car mishap. This is a very considerate move especially if your groceries amount to a considerable sum. Not many car insurance providers are able to include these little details that can be very attractive especially when it comes to a specific age group, gender and occupation. Stay at home moms will be able to appreciate these little perks in their coverage.
The appeal of a great products is really o its features as well as its price. Motorists want cheap coverage but not to the extent of compromising on some vital features. Motorists are looking into affordable rates with complete services.
Coles has been a consistent player in the car insurance market. Many of its customers expect the company to deliver quality products with reasonable prices. With the assistance of Wesfarmers insurance, Coles is at the best situation to offer unique car insurance products with undeniably attractive features. Australia motorists will be able to take advantage of these products that have the car owner’s satisfaction at heart.