The beginning of a new financial year could mean the beginning of new cost-saving habits, with consumers reviewing their policies and making changes to how they manage household expenses. Yet, with most car insurance premiums increasing every year, new research reveals just how loyal Aussies are to their car insurers and how it may be costing them hundreds more annually.
Australia’s biggest car insurance comparison website comparethemarket.com.au commissioned a survey of an independent, nationally representative panel of 1000 adults with comprehensive car insurance about their purchase habits and attitudes.
Surprisingly, results showed that a whopping 89 per cent of motorists renewed their car insurance with the same insurer in the last year.
The survey also revealed that over two thirds (69 per cent) of respondents have been with the same car insurer for more than two years. This includes 30 per cent who have stuck with their insurer for two-to-five years, 15 per cent who have been with them for five-to-10 years, and 24 per cent who have stayed loyal for more than 10 years. Over 55s are the most loyal with their car insurer, with two fifths (41 per cent) remaining faithful for more than 10 years.
Yet despite these figures, 81 per cent of the survey respondents admitted the cost of their car insurance goes up every year.
Taylor Fry research saw car insurance premiums rise by an average five per cent last year. Despite this rise, 42 per cent of motorists in the comparethemarket.com.au survey said their annual car insurance premiums would need to increase by double that amount (10 per cent) before they would switch to a cheaper policy. A further 32 per cent said their premiums would need to increase by 15 per cent or more before they switched.
When asked the reasons why they were not switching, a third (32 per cent) believe they will not be able to find a cheaper policy. Bundled policies and loyalty rewards was another reason why over a fifth (22 per cent) will not switch, while 17 per cent believe it is easier to just renew.
Abigail Koch, household savings expert at comparethemarket.com.au, said: “Last year, motorists were charged on average $50 more annually on a car insurance policy costing $1000. Even with these rises, our research showed that Aussies aren’t motivated enough to switch to a cheaper policy until premiums increase by around $100 or even up to $150 on that same policy, mainly because they don’t think they can find a better deal.
“However, an analysis of 11 car insurance policies on comparethemarket.com.au revealed quotes can vary by almost $1000 for a female driver in Sydney with a popular small car. Comparison websites such as comparethemarket.com.au make it easy for Aussies to compare car insurance to find the best-suited policy at the best price, rather than allow their car insurance costs to increase every year.”
For interviews and more information, please contact:
Neneh McGuire | +61 2 9279 3330 | +61 404 433 263| [email protected]
Comparethemarket.com.au is an online comparison service that takes the hard work out of shopping around. We help Australians to quickly and easily compare and buy products from a wide range of providers. Our easy-to-use comparison tool enables consumers to find a product that best suits their needs and their back pocket. We’re also in the business of comparing personal finance products, utilities and can help find the lowest fuel prices in your area. Whether it’s car, health or home & contents insurance, we provide a completely free service, that empowers Australians to make buying decisions with greater trust, knowledge and savings. We’ve got your back, simples.
 Survey conducted by Pureprofile
 Comparethemarket.com.au analysis of 11 car insurance policies for a 33-year-old female Sydney driver with a 2015 white Toyota Corolla 4dr sedan and a 3-year no claims discount, found the least expensive quote was $876 and the most expensive was $1857.