Car and Caravan Insurance - Premium Creep

Thanks Philip

I have yet to ring my current insurer and haggle. So I will give that a go.

We too are old farts with clean driving records. So the constant premium increases are irritating.

Cheers John

The YOUI ads on the TV just do my head in
:((
Nor have I heard anything good about them

We have been using Westfarmers insurance for a number of years now after a mate suggested them after using brokers for years and have not noticed any significant increase in insurance , have found them to be very competitive with there policies although they don't claim to be a mainstream vehicle insurer . have had a few claims with them and I must say they have bent over backwards to keep me happy .
had a claim a few years ago with one of our cars which was fairly straight forward they didn't want any more than one quote . Pluss they give me a call just before the renewal comes up to discuss any changes and sometimes come out for a face to face which is nice service these days which you don't often get .
Also there has been a bit of coverage of the insurance industry on Current Affair type shows of late talking about this very subject . Pays to shop around , good luck .

In regards to Youi, when we got a quote from them for our Cruiser we were advised that they have a limit of $2500 for non standard accessories, so if you are like us and have some $10000 you have to remove them from the vehicle after the accident, if you can.
That limit could have changed by now so worth checking.
baz

I should have also said I do not insure with the CMCA facility, I have a better alternative [for 4wd, other car and caravan] through another Insurer facility which is not available to general public.

Thanks Bobjl

I cannot say that I sing the praises of the CMCA facility. One no fault claim was dealt with professionally and efficiently. But that is what I expect when paying $2k+ per annum for insurance.

You can read many reviews where persons sing the praises of their insurer, but often fail to mention that they haven’t made a claim.

I accept that a regular shop around for prices is worthwhile but comparing policy terms and conditions is not simple. My needs require the insurer to cover me when I am truly “off road” not just off the bitumen.

I appreciate your response.

Regards John

I can’t see how they cost more as a lot of them insist on secondhand parts!
I had a vehicle run into the back of my Prado & badly damage the rear door & despite my vehement objection, the other parties insurer insisted on fitting a secondhand door.

Hi Ken

Many thanks for the comprehensive reply. It looks like you have some inside knowledge of the insurance industry.

I agree with your recommendations. When I was working( a few years ago now) I was responsible for pulling together a range of corporate insurance policies with an annual premium of $250k plus. This was done via a broker. Understanding the T&Cs was vital to determine the risk vs the premium.

In my original post I was hoping to uncover some real life experiences regarding the risk of having multiple insurers. My experience with a fatal aircraft crash, multiple insurers and 11 years in court to settle the claim have made me a little gun shy of having multiple insurers involved in a single claim.

By the way. As I understand it Allianz owns Ken Tame. This was explained to me last year when I visited the Ken Tame booth at the Perth Caravan show by the resident representative. So there is nobody in the middle battling for the insureds rights in this case.

Cheers John

Hi John,

Yes I do have industry experience. That doesn't mean I can't come unstuck though and is why I emphasise reading PDSs carefully. I had a breakdown a long way from home last year and my rig had to follow me home on a semi. I thought I knew my policy but before loading up the $50k camper I carefully read the PDS. It fell short of my requirements in that it didn't cover the camper on the truck. The RAC were paying for the recovery and their carrier provided only basic protection. I had to urgently source a cover. How many customers would even bother to check this? I am not letting this rest and may one day report outcomes here.

I separate my car and camper covers although technically the companies are related. My car is insured on a new for old basis regardless of its age. All its accessories and add ons are included and it is covered anywhere in Australia. If I happen to be on a closed road or private property without permission or a track I have made myself I am covered. In all likelihood it would require an emergency or other unusual circumstances for any of these to happen but I don't want to be hung up worrying about it if it does. It also covers damage caused by bad fuel (as opposed to wrong fuel) as most policies do. I pay around $200 more for this policy but I am not bothered about how low they drop my sum insured for obvious reasons.

Although a single accident is likely to involve both towing vehicle and caravan in reality the claims will be settled independently.

Incidentally I am an advocate for the RAC following my breakdown experience and can't speak highly enough of their top level assistance package. If I can't convince my current insurer (who I still have a bit of sway with) to upgrade my policy I will probably head toward the RAC. I can see benefit in having roadside and vehicle protections in one place.

Not sure about Allianz owning Ken Tame but according to their FSG they do have a binder which effectively means they act as the insurer so my advocacy suggestion is limited at best. They also take a commission which indicates to me there is still a degree of separation though.

I would be interested to hear how you go and where you end up and ultimately what influenced your decision.

Ken

Hi Ken

Many thanks for the info. Very useful.

I will keep you informed of my final decision.

Next step is to have a conversation with the current insurer.

Just for the record the following shows the historical values of my current insurance.

Date Premium. Prado Insured Value. KK Insured Value

2015. $1626. $67,500. $88,700
2016. $1707. $67,500. $88,700. Accident & claim in this year
2017. $1723. $60,750. $84,300
2018. $1970. $54,700. $83,000
2019. $2306. $49,200. $82,000

So I was in error in the values shown in my original post but the magnitude of the increase is valid.

Cheers John

Hi Ken

I ended up going with RAC.

The conversation with the Ken Tame rep was not productive. The reason given for the premium increase was “Cyclone Debbie”. They were not open to any form of premium reduction apart from significant decreases in the sums insured and/or increases in the excess.

The RAC PDS’s were reasonable and the sums insured were equivalent to to the Ken Tame policy. Final premium was $1850 however this included a roadside assistance package that was not included in the KT policy.

So hopefully I have made a reasonable decision. The proof is always in the claims process.

Cheers John

Hi Ron

I totally agree on the market value vs agreed value argument. Market value is open to endless argument. One mans junk is another’s treasure!

For me my goods have a certain value and I want to insure them for that value. I will pay the necessary premium and in the event of a claim ( write off) I expect to receive the insured amount.

Cheers John