Car Insurance Discounts
Car Insurance Discounts

Victorians paying most for car insurance despite lockdown

Victorian motorists are paying the most for car insurance policies in the country despite many being unable to drive more than 5km from their homes.

Under the stringent stage four restrictions Melburnians are restricted on where they can drive - and 74 per cent of Victorians are driving less now than this time last year.

New analysis by financial comparison website Mozo showed the average annual comprehensive car insurance premiums are highest in country at $1181.

This compares to NT at $1166, NSW $1113, ACT $942, SA $874, WA $831, Qld $810 and Tasmania at $752.

Nationally the average cost of comprehensive car insurance is $952.

Mozo's spokeswoman Kirsty Lamont urged Australians particularly Victorians to review their car insurance cover and see if they could negotiate a discount.

"A lot of Victorians would be shocked to know they are paying the highest car insurance premiums in the country despite the fact many Victorian cars have been gathering dust in garages for months now," she said.

"About 70 per cent of motorists have not contacted their insurer to ask for a discount or a price review."

Ms Lamont said if motorists are driving less than this time last year "it's time to get in touch with your insurer and demand a discount or a reduced premium."

Tim Gordon, 39, and his wife Nicole, 35, have two cars including a 2012 Ford Fiesta and Audi Q5 costing them $2600 a year for insurance.

-Finance manager Tim Gordon, 39, his wife Nicole, 35, and son Sebastian, 3 months have two cars. They are paying about $2600 a year for comprehensive car insurance despite not being able to drive very far. Picture: Alex Coppel.
-Finance manager Tim Gordon, 39, his wife Nicole, 35, and son Sebastian, 3 months have two cars. They are paying about $2600 a year for comprehensive car insurance despite not being able to drive very far. Picture: Alex Coppel.

He said they should be getting a reduced rate given they are limited to how far they can drive their vehicles.

"We've only driven the Ford 100km this year and the Audi 1000km," Mr Gordon said.

"With the Audi on my policy it says I can drive up to 12,000km a year but I've only driven one twelfth of this, it does feel like the cars sit there and there's limited risk."

Insurers across the country have rolled assistance packages to help those experiencing financial hardship during the pandemic.

The Insurance Council of Australia's spokeswoman Lisa Kable urged people to seek help if they have hit hard times and said help would be assessed on a "case-by-case basis".

"Car insurance is bought to cover a variety of risks for a full year," she said.

"Most risks remain unchanged during the COVID-19 pandemic."

She said people should visit their insurer's website or phone them up to discuss their individual situation.

sophie.elsworth@news.com.au

@sophieelsworth

 

Originally published as Victorians paying most for car insurance despite lockdown


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