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Car Insurance Gst Australia – A perfect storm of factors has caused average auto insurance premiums to rise nearly 20 percent in 2024. Here’s how you can save money.
If you’ve received a notice to renew your car insurance that costs nearly twice as much as it did last year, you’re not alone.
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According to March 2024 inflation data from the Australian Bureau of Statistics, insurance prices in Australia rose by 16.4 per cent annually – the largest annual increase in 23 years.
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Across the insurance sector, rising “natural catastrophe and claims” costs are driving up premiums on all types of products – from home and contents insurance to car insurance.
However, car insurance premiums are the cost most discussed among consumers, with estimates doubling or even tripling within 12 months.
“My comprehensive car insurance was $1,500 last year and I was sent a renewal for $2,250 this year for the same car with the same terms,” one insurance customer shared on Facebook.
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Unfortunately, even if you have a clean driving record and your circumstances haven’t changed, you may still receive a more expensive renewal notice for your car insurance in 2024. Here’s why.
Quite simply, the number of car insurance policies has increased because cars have become more expensive to purchase and repair.
An Insurance Council of Australia spokesperson said: “Cars are now more complex and demanding – small noises that might previously have sent you to the registry for immediate repair now require repair and testing of complex sensors used in navigation and security systems.” ika). He said .
Inflation has also caused repair costs to rise, meaning insurers face higher costs when customers make claims.
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The ICA spokesperson added: “The cost of motor insurance claims has risen by 43 per cent between 2017 and 2023, which is double the rate of inflation over the same period.”
In addition, we are driving more than ever, which increases the likelihood of an accident, and climate change is making us more vulnerable to natural disasters such as wildfires or floods.
“Currently, auto premium prices are constantly rising as cars become more expensive to replace, inflation and supply chain issues are driving up repair labor costs and auto parts prices, and increased capital costs for insurers due to weather events.” An ICA spokesperson explained.
According to comparison website Canstar, the average cost of comprehensive car insurance in Australia is $2184 for women under 25 and $2437 for men under 25. For other age groups, the average is $1,733 for those ages 25-29 and $1,312 for those ages 30-25. 49 years old and $1006 for those over 50 years old.
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For electric car buyers, it should be noted that comprehensive vehicle insurance offers differ by 40.1 percent compared to a gasoline-powered car.
“The average person can pay about $690 less for annual comprehensive insurance on a gasoline car than if they had an electric car,” says Adrian Taylor, executive managing director of General Insurance and auto insurance expert at Market Compar.
“These higher prices may be due to factors such as complex EV technology components that are more expensive to replace or repair, and the current shortage of specialists who can perform these repairs.” Qualifications, we expect a potential reduction in these costs.
Don’t assume that your loyalty will be rewarded. If you receive a large renewal notice, shop around and get quotes from other insurance companies.
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If you find a cheaper deal for the same coverage, you can take it to your current insurer to see if they will lower your premium or skew coverage.
An estimated 2.6 million car insurance policies were transferred to other providers in the 12 months to October 2023, according to Roy Morgan.
Of course, a good driving record will keep your insurance premiums low, but you should also leave your car at home whenever possible.
It may seem counterintuitive, but some insurance companies offer lower premiums to those who rarely use their cars. If this applies to you, be sure to tell your insurance company.
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“It is common for insurers to charge renewal policy higher premiums from new customers,” Steve Mickenbecker, executive director of the financial services group at financial comparison site Canstar, previously said.
Use the same parameters you use on your current policy to determine if your insurance company is charging more and hope you don’t notice.
If you manage to catch them, be sure to contact them and mention your new offer to shorten the renewal period.
If you have young people in your family, limit yourself to driving only one car so that you do not have to pay for insurance coverage for several family cars.
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If you can park your car in a safe place instead of on the street, do so.
Companies like Parkhound connect you with people who have parking spaces for rent near you. You may find that the cost of renting a safe room is offset by the lower cost of your insurance.
If you struggle with ongoing costs and are rarely or far away, it may be worth increasing your deductible to lower your premiums.
Naturally, this means that your initial costs will be higher in the event of an accident. So make sure to balance these risks with the benefits of a cheaper premium.
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“The car reaches a point where the premium is no longer relevant enough to the price of the car,” Mickenbecker previously said.
“However, don’t think about avoiding fire and theft by third parties. Even if you drive a $5,000 car, you can still find a Ferrari!”
Some cars – such as electric cars, luxury cars, sports cars or large cars – are more expensive to insure than others.
Just like gambling with your insurance premiums, choosing to insure at market value rather than agreed-upon value is an easy way to reduce ongoing costs – but you risk paying less in damages if your car is written off.
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“If you insure your car at market value, you will be covered for a reasonable replacement cost based on the ‘market value’ of your car,” explains insurance company Budget Direct.
“On the other hand, insuring your car at an agreed value means just that – you are covered for the amount your insurer agrees to insure your car for, regardless of how your car depreciates during the term of the policy, i.e. if your car is written off or stolen and you don’t is refunded, you’ll know exactly how much money you’ll get.
“Insuring your car at market value will likely be cheaper in terms of the premium you pay, but the market value of your car at the time of loss or damage will usually be less than what you originally paid for it.”
Alternatively, if you can’t afford a large down payment, consider switching to monthly payments to keep costs more manageable.
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If you are using a large provider, it may be worth switching to a smaller provider as they often offer more competitive rates.
Finder’s 2024 Car Insurance Awards found Bingle to be the cheapest car insurer in Australia, with comprehensive cover costing on average just $862 a year.
Second place in the low-cost category went to Rollin Car Insurance – which has proven to be particularly affordable for young people – and Hume Bank, whose comprehensive insurance costs an average of $959 per year.
Susannah Guthrie has been a journalist for over a decade, covering everything from global news to fashion, entertainment, health and cars. Susanna has previously worked at newspapers such as The New Daily, Elle, Harper’s Bazaar, People Magazine and Cosmopolitan, and now enjoys testing the family car with the help of her husband and three-year-old son. Journalists on the Advisor Australia editorial team base their research and opinions on collecting objective and independent information.
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