01.Avoid the lazy tax on car insurance
An increasing number of Australians compare car insurance rather than automatically renew their policies and women aged between 25 and 49 are the most likely to switch insurers, according to research from Roy Morgan.
The number of consumers looking for cheap car insurance has risen from 1.1 million in the year to February 2011 to 1.7 million in the year to February 2014, an increase of over 50%.
Changing insurers is potentially saving hundreds of dollars for consumers, with many CHOICE members telling us how they’ve saved on car insurance by shopping around instead of automatically renewing their policies.
In a CHOICE survey of car insurers, one third of insurers admit to having higher premiums for renewals than for new business, despite having exactly the same policy details. We’ve labelled the price consumers are paying for their reluctance to switch the lazy tax. And insurers are raking in the lazy tax with 78% of people still renewing policies automatically.
And ABC show The Checkout recently found more examples of people saving money by shopping around.