If you were to ask this question to most Australians, I think your answer would be 15, or 20 at the most. But in fact, there are more than 70 car insurance companies that offer car insurance to Australian drivers. Many of these insurers are owned or, more importantly, underwritten by the same company, which means that many policies and products are nearly identical. In many of my previous articles I have discussed the importance of the underwriter to make a proper comparison, so I won’t go into it, but of those 70 insurance companies, there are probably only 15-20 underwriters.
So how can so many insurance companies survive? Some do it through innovative products, some do it at affordable prices, others have sold insurance in Australia for many years and have built a reputation as a strong car insurance brand, and still others can take advantage of large customer bases to sell. insurance and collect insurance. commission for your problems.
There are five main types of companies that have their own brand name car insurance;
1- Companies that have been doing business in the insurance industry for years (i.e. CGU, Allianz, AAMI, RACV)
2- Companies that offer innovative non-standard car insurance products and features (i.e. reimbursement, youi, PAYD, Bingle, LSV, Dawson, Famous, Shannons)
3- Foreign companies (Budget Direcr, Real Insurance, Progressive Direct, eCar)
4- Financial companies with a large consumer base to potentially sell insurance to (i.e. ANZ, Commonwealth, Westpac, NAB and Bankwest)
5- Non-financial companies that can take advantage of their large customer base or are a company that deals with a related good. Examples here include Beaurapaires (usually a tire dealer and manufacturer) and Australia Post (it has millions of customers).
Is it good that there are so many companies to choose from? Definitely! The choice is good for consumers and the Australian auto insurance market has opened up significantly in the last 5 years. More choice means more competition from insurance companies, which means they have to work harder and harder to get your business, which generally includes lower prices. Auto insurance comparison sites would further increase competition, but so far it has proven difficult due to the lead player’s reluctance to participate; But some websites are popping up that help consumers make a better choice.
So the next time you need car insurance and are thinking you have a small variety of options, think again! There are many car insurance companies in Australia desperate for your business and by comparing prices it is not uncommon for you to save hundreds of dollars.
