Are "budget" car insurance quotes cheaper?

[Bimmerle]

OK, my insurance premium is up for renewal in February. At present, I'm carrying over from my previous car, and I'm with AAMI.

So this is what it's about: 125i Coupe (manual) purchased October '09, M-Sport pack with 18" M-Sport wheels, space grey metallic. Nothing else - pretty vanilla really. I am, well, an older driver, with an immaculate record, as is my wife. Car is garaged.

AAMI wants $685. This is actually cheaper than I paid for my 2003 RX-8, which was insured for around a third the value of our current car.

I got two flyers in the mail yesterday, one from Budget Direct, the other from Virgin Money. I have just got in-line quotes from them. Both use exactly the same quotation form, not surprising really, since the insurer in both cases is Auto & General Insurance Co. Ltd.

The quote from Budget Direct is....(drum roll) $1332 (!!), and the quote from Virgin Money is.....(cymbals clash) $1457!!!

I will admit that my wife's car and our house insurance are all with AAMI, so there might be around a 10% reduction in premiums as a loyalty discount, but guys, double the price from the so-called "budget" insurers? We've always been very happy with the service we've got from AAMI, too.

[micha3l]

AAMI were the cheapest for my 135i also, $805pa for a 25yr male.

Got quotes of $2k+ with some insurers, alot of the so called "budget" insurers wouldnt even touch me!

After being with Youi with my last car, and having to claim after a truck ran up the back of me I would not recommend them at all!!! Was interrogated like I was a criminal, and the truck driver called to admit fault before I even got to work to call them

[sparoz]

Originally Posted by micha3l

AAMI were the cheapest for my 135i also, $805pa for a 25yr male.

Got quotes of $2k+ with some insurers, alot of the so called "budget" insurers wouldnt even touch me!

After being with Youi with my last car, and having to claim after a truck ran up the back of me I would not recommend them at all!!! Was interrogated like I was a criminal, and the truck driver called to admit fault before I even got to work to call them

Same with AAMI, and all of them judge anyway, but they interrogate in a very nice way. I found AAMI consistantly have the lowest price with insurance, and their customer service is pretty good.

Allianze/BMW Finance is very good with their service, and their claiming process is excellent, where I feel they don't try to screw you like all other insurance companies do when you are making a claim. You are paying for a much higher premium though for a more comprehensive insurance.

[Jeef Beef]

It really depends year to year from my experience. I know my dad usually rotates between AAMI and NRMA depending which one is cheaper for that year. Staying with the same insurer for consecutive years seems to always cause them to jack up prices.

However, I've never seen the 'budget' insurers actually offering any premium that was cheaper. I guess it's because they have a much lower capacity to take on risk compared to the large companies. So maybe if you were a perfect driver with the perfect car then you'd experience a discount.

The other thing about AAMI is it seems that the premium holder doesn't have to be the owner of the car, and 'secondary' drivers can be added to the policy without affecting the premium at all. That might be a path I'm willing to take when renewal comes up, having the premium under my dad's name rather then paying $4,500 under my own to NRMA

[oldman]

Budget premiums seem very dependent on where you live. I paid $785 for my 135i.

http://www.1addicts.com/forums/showt...=302490&page=3

[MikeVictor]

There are a couple of Australian sub-forum insurance premium threads if you

Insurance isn't that hard to understand really. You pay a certain amount of premium to transfer the risk of loss to the insurer.

Many factors affect the risk.

Ancillary, or bells-and-whistles benefits will vary between insurers, this also affects the risk.

The insurance company, in order to stay in business, remain competitive and continue to provide you with cover for your pride and joy, must make a profit. This is the commercial reality.

So when you're comparing just the dollars, it's not giving a full picture of what you're comparing. To draw a parallel, it's like saying you paid so much money for a car and someone then asks you, "what car did you buy?" to which you answer, "a car. it drives me from A to B. they're all the same, aren't they?"

As 1-series drivers, we all know that not all cars are created equal. Same goes for insurance policies.

Best thing to do is read your PDS' and decide if you're happy to accept the insurers terms for what they're asking you to pay.



on a side note, I have to shake my head in disbelief at the number of people who pay upwards of $1000 to insurance a depreciating $50k-$90k vehicle, yet in a lot of cases don't even spend as much to insure themselves against serious injury or disease. It's a cultural thing in Australia I understand, it's just a shame when I have to deal with the aftermath.

[sparoz]

Originally Posted by mattyv

There are a couple of Australian sub-forum insurance premium threads if you

Insurance isn't that hard to understand really. You pay a certain amount of premium to transfer the risk of loss to the insurer.

Many factors affect the risk.

Ancillary, or bells-and-whistles benefits will vary between insurers, this also affects the risk.

The insurance company, in order to stay in business, remain competitive and continue to provide you with cover for your pride and joy, must make a profit. This is the commercial reality.

So when you're comparing just the dollars, it's not giving a full picture of what you're comparing. To draw a parallel, it's like saying you paid so much money for a car and someone then asks you, "what car did you buy?" to which you answer, "a car. it drives me from A to B. they're all the same, aren't they?"

As 1-series drivers, we all know that not all cars are created equal. Same goes for insurance policies.

Best thing to do is read your PDS' and decide if you're happy to accept the insurers terms for what they're asking you to pay.



on a side note, I have to shake my head in disbelief at the number of people who pay upwards of $1000 to insurance a depreciating $50k-$90k vehicle, yet in a lot of cases don't even spend as much to insure themselves against serious injury or disease. It's a cultural thing in Australia I understand, it's just a shame when I have to deal with the aftermath.

lol, as all financial planner would say. I guess my life/tpd/income protection makes the premium for the car looks tiny.

On the other note, that's why I tend to go with BMW Finance or Allianz as they got more bells and whistles - if you read the fine print there are things that they cover that AAMI doesn't. Eg, RACQ would not cover negligence if you consent them taking control of your vehicle, while allianz does depending on the situation. BMW Fiance also guarantee original parts, while others don't (including Allianz, although they are the under writing. They are also coverage from allianz in unlisted underaged driver - where you get wack an excess for unlist, and also an excess for underage, while AAMI/BMW Finance doesn't have that clause - ie, no coverage. .