How I saved $163 on my car insurance premium, that’s 25% off original quote

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It was in Feb, I got a mail from AAMI requesting to renew my car insurance.

It was not no surprise as I was expecting this expense, I knew it was that time of the year to pay for my car insurance.

But what got me off-guard is the premium, it has gone up to $641 for a 2005 old Mazda, last year I paid $560 — that’s an increase of $81 this year.

I felt 12% is a steep increase in one year when you have no accident history and your car depreciated in value.

I had been with them for around 6 years now, my safe driving reward was at sapphire level (one level below highest), never the less my credit card didn’t feel safe for that rate.

I decided to check online, how much it would cost for new customer with same car. It came around the same $650 mark.

I got confused a guy being a customer for 6 years + no claim history+ Home insurance + Sapphire status (considered one step below highest) gets same discount as new customer.

Something didn’t add up, I called AAMI customer service.

They were good, listened to me.

“The reason the price was matching is that they apply new customer discount for new customers”, said the representative.

(Well for me it sounded like we give same discount under different names)

AAMI did manage to reduce my premium to $590 on the call.

On probing for further discount they said “AAMI will not match competitors, it’s against our policy”.

It’s like we quote a price you take it or leave it!

Really AAMI?

I knew it was time to look around as the discount didn’t sound right– 10% discount on a 10% increase.

I decided to look around and got quite a few quotes from RACV, Bingle and others, but YOUI caught my eye.

This is how I approached YOUI.

In my conversation, before she could do her quote, I slipped in that AAMI gave me a quote for $530 (let’s say I discounted further:) ) and been with them for 6 years.

Haggle Tip: To get a better discount always disclose less price than what competitor has quoted you– that way the company will always try to give you a premium that matches or best beats your cheapest quote. (For example I disclosed $530 as the quoted price from AAMI instead of $590)

I could feel that they wanted my business as I ticked all their boxes, after some time the lady on the phone said the premium is $500.

I clearly told her that ($530-$500) $30 over a period of one year is not a big savings and I don’t intend to go through the hassle of changing insurance company.

She said “I will talk to my manager and see what I can do for you”.

This is what I wanted to listen, I waited and she comes back with reviewed quote of $481.36 from her manager.

Car Insurance Premium Quote

Just want to make a note here that YOUI doesn’t pay me any credit for this article, if I don’t get a better deal with them next year I am willing to move to some other company. I guess the point is not about company but a way to save money on insurance.

The price was a bonus discount for me, when choosing insurance there is more than just the price tag, I went through PD (product disclosure) in detail comparing AAMI (my current insurer) and YOUI. I was convinced that this suits me.

 You may some times get cheaper price because the insurer’s market value of your car is less than what you expect or the liability is not enough. Use discretion when choosing the right insurance for you, always read PD and know what is and what is not covered.

If I were to renew with AAMI as they per the letter, I would have paid $641, but my research has saved me a total of  $163.

That’s a saving of 25% on the premium.

Even a simple call to AAMI has dropped the premium by 8%, saving $54– that’s a good amount towards your electricity bill.

So, next time when the insurance company wants you to renew the loan, call them up and see what they can do for you.

In my case I went with YOUI for $481.36.

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