Why do insurance costs increase?

12 September 2018

 “Why has my premium increased?” is a question that insurance companies hear at policy renewal time. And it’s a fair question.

Many things affect insurance premiums including:

• climatic changes
• vehicles with higher specs
• increased repair costs
• A greater number of vehicles on the roads which leads to more collisions.

There are many factors that go into working out a policy’s premium. Unlike most other insurance companies, we’re very hands on with our customers and know more about their unique circumstances than others. That’s because we ask plenty of questions so that we can provide the best and most relevant insurance policy at the best price. And by best insurance policy, we mean exactly that.

When you make insurance personal you cut out a great deal of automation, which in this case is a computer working everything out for you. Automation can be the enemy of savings. When a computer handles most aspects of a policy’s creation, it gathers the generic policy wording and premium costs based on a lot of data and averages that sit in its database. You’re categorised based on a whole lot of metrics, and lumped into the same risk zone as many others. You’re effectively charged an average with stock standard terms, and you pay the average price for that group.

In a busy world, automation has its place but we want to get it right first time, every time. So we personally assess each policy at inception and renewal anniversary to ensure that our customers get the best option for their needs.

At Star Insurance Specialists, we treat you as an individual. Our policies are based on the best outcome for you, if you need to make a claim. That’s why we empower you with the information you need to make informed decisions. Things like choosing a higher base excess translates into lower premiums paid. But this is just one factor, which is why we ask you plenty of questions so you don’t end up paying for what you don’t need. When your policy comes up for renewal, knowledge is power, so ask us anything.

So when considering your insurances, ask if there are any policy changes you’d desire, especially if you need to keep your insurance premiums as low as possible. Ask yourself questions like:

• Has my vehicle’s market value changed?
• Have I increased or decreased the amount of true contents (other than appliances or accessories permanently fixed) that I carry around in my RV?
• Do I now live in my RV whilst my insurance covers me for recreational use only? Or have I stopped living in my RV?
• Have I received any speeding tickets or Police convictions in the past year?
• Have I made any significant changes in circumstance in the past year?
• Am I comfortable electing to have a higher excess in exchange for a lower premium?

In fact, the above questions could be asked of any type of insurance you have, including vehicle, house, contents, life, health, etc. Looking more closely at your needs and then notifying us about any changes you need or want to include in your policy, is always in your best interests. With transparency you have the best protection and claims will be easier.

So whilst it’s true that insurance premiums have increased across the board, we work hard to limit the impact on your premium. And as you can see, even small changes can impact your insurance costs.

We’re real people like you, and we know dealing with insurance for your motorhome or caravan can sometimes be stressful. But by delivering a higher level of service, we go beyond ticking boxes and putting policies through a pipe. All our customers enter a personalised evaluation to serve their best needs. This approach obviously works because today we have over $2.5 billion worth of vehicles insured and counting.

So talk to us about the tricks we have up our sleeves to put a smile on your face.