00:02Drivers are navigating confusing coverage.
00:05I've found that insurance policies vary a lot with a cover and you get a big surprise sometimes when you
00:11make a claim whether or not you're covered.
00:13The corporate regulator looked at the policies of five major car insurers.
00:18It found that premiums jumped 42% in five years with 8% in one year alone.
00:25That 8% seems pretty excessive unless they're doing a catch up.
00:30When we talk to insurers they tell us there are a range of reasons for these significant increases but the
00:36problem is they're not explaining the reasons for those increases to their customers.
00:40The industry is blaming extreme weather events, costly car parts, even taxes but ASIC found that there's still room for
00:48cheaper premiums.
00:49The fact that around a third of people who push back on their insurer end up paying a lower price
00:56shows that the price that you are offered may not be the lowest price that you could pay.
01:01This also shows that loyalty doesn't pay.
01:04Do you shop around for car insurance?
01:06Always. You've got to shop around otherwise you're paying a fortune.
01:09ASIC is focusing on this industry as it's taking one major brand RACQ to court alleging misleading policy documents.
01:18The federal government is also cracking down with it flagging legislated standardised definitions in policy.
01:25For its part the insurance industry is also working on a mandatory code of conduct that would be enforceable by
01:32ASIC.
01:33It would be hard to pay for that credit that there is no longer use the avoidance but the reason
01:33why you didn't really get here is the bug.
01:33What's your plan to be doing around that?
01:34You've got to make a lot of different rules.
01:35What's your plan to do?
Comments