Cheap Insurance Loophole

AWD Chaser · 03-04-2006, 12:56 PM

Hey all.

This morning, upon checking my insurance, I found how NRMA structures their comprehensive car insurance prices. Now this isn't anything secret - How Many Years Driving Experience You Have (excluding L's) determines the premium you pay each year.

Now what may not be so obvious is that if you got your license on the 10th of May 2003 - right now you would have 2 Full Years driving experience. Now if you sign up to NRMA comp. insurance today (April), you have to state that you only have a full 2 years, and you get you fall into that pricing category. However, when you come around to your license anniversary next month, you will have 3 full years driving experience, yet for the next 11 months, your policy pricing is based on your 2 years experience.
This is important to note because alot of people think it goes on age, and that is only a part of it, but not the main part.

The loop hole around this is to renew your policy the day after your license anniversary, and then each year you will not be paying higher insurance for a category that you don't fit in.

This is mainly for younger drivers as insurance premiums change each year so much for us till we are about 23. As far as I know, this "loophole" is applicable for comprehensive yearly insurance. I'm not too sure about month-by-month payments. I think it will still apply because the policy is for 12 months, but you just pay month by month.

By discovering this, I now save myself $200 this year and another $200 next year because I have dropped down into a lower age/pricing category.

It may be worth looking at doing for yourself!

Axle-F · 03-04-2006, 02:59 PM

I already figured that one and I'll definately be using it when I turn 25 this year!

4.9 EF Futura · 03-04-2006, 03:05 PM

You'll find that premiums are based on a mathematical model... and that years driving experience is simply one input into this model... so basically there's plenty of answers you can give to achieve a desired outcome... asuming of course, you are able to do so without providing false information.

Same with loans - stuff like "how many years have you lived in current address", years of employment etc all feed into a model which determines your ability to repay...

AWD Chaser · 03-04-2006, 05:57 PM

Quote:

years driving experience is simply one input into this model.

That is why I said it is just one factor, but it is the main one for adjusting the price by about $200 a year.

GK · 03-04-2006, 08:12 PM

Insurance really hacks me off!

Years ago, it was almost all on your driving history, no stacks = smaller premium.

Now there's all sorts of ways they take the extra from you.

Number of thefts of your type of vehicle.
Number of thefts in your suburb.
Number of younger drivers in your type of vehicle.
Terrorism Sept 11 rubbish excuse to hike the premium.

Still, after all my whinging, I'm still grateful to have it! LOL!

GK

HLC · 03-04-2006, 10:15 PM

i found a cheap way. i got my parents to insure my car in their name. cuts my insurance by at least 50% im only paying 1400 a year with 2 years driving experience and a right off plus a neg driving fine... where as if i did everything my way.... $3000+++

i just give my folks the cash and they do their thing.

:

AWD Chaser · 04-04-2006, 12:07 AM

That would be great except car loan in my name = insurance in my name

TheSneakiness · 04-04-2006, 10:09 AM

I just moved out of home and found out that when I changed my address with RACQ, they hiked my premium by $17 a month.

I've been talking with someone here, and when my renewal comes up in July, I'm hoping to knock off around $200 on my premium. I have Hire Car option on my cover, which I don't need anymore because I don't live far from work, and there's heaps of repair joints near me at work and at home. Also, I'll be going up to rating 1, so there's more off.