What's New in the Australian Car Insurance Industry?

Nov 1, 2007

When our parents wanted to buy car insurance, they would have turned to insurance companies such as AAMI, NRMA, RACV, RACQ or even approached their existing insurance company which provider their house or life insurance. They then bought the insurance that was offered by their preferred provider without much thought and, more often than not, without any shopping around.  Today, things are different.  Consumers  are far more savvy and demand get far more from their car insurance budget. With the proliferation of insurance providers and the variety of ways a consumer can purchase a policy, the chances of making a significant saving on your car insurance costs are much better.

Enter the Internet 

Australians are becoming more reliant on the Internet when it comes to shopping for car insurance, leading to the entry of new car insurance players through the Internet alone. There are very few of us who have the time (or inclination) to traipse between several insurance offices and compare the different products and policies offered. Likewise, it may literally take hours on the phone to obtain quotes from several different companies, and then you still have to compare the products and prices to decide on the policy that is right for you.

Many (if not all) car insurance companies now have a presence on the internet and provide the ability to obtain a quote and buy car insurance policy online. You simply enter your information into the forms provided car type, driver(s) age, existing insurance rating if you have one etc. You then choose what sort of coverage you require and then push the calculate button and up pops your quote and a quote number. Each individual company will let you know when the quote is calculated and how long it is valid for. Once you’ve decided on the company and policy you wish to purchase, you just type the quote number back into the company’s website and, using your credit, purchase the insurance. (You can also take the quote number and contact the insurance company by phone or in person if you have more questions or don’t want to use your card online.)

Buying insurance over the net is not only quick and convenient, several car insurance companies offer discounts for buying online. By selling carinsurance online, car insurance companies don’t have to employ as many phone operators or counter staff in their branches and hence pass on these savings on to the end user (YOU). The proliferation of these new companies offering car insurance online has also led to the savings associated with increased competition. In summary, the Australian car insurance industry is rapidly changing, with the changes most likely to benefit the consumer!

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