YOUR GUIDE TO PRODUCT EXCELLENCE
Report No. 3
CAR INSURANCE STAR RATINGS
IN THIS REPORT WE EXPLORE …
Tough year for insurance
A necessary evil?
Drive less, pay less – new innovation
Taking the green route
Drop in car sales a sign of the financial times
Star Ratings help you shop around
Strong performers dominate
TOUGH YEAR FOR INSURANCE
Insurance companies have had claims coming out of their earholes lately. Huge hail storms in
New South Wales and damaging storms and flood waters engulfing major areas in Queensland
are just a few catastrophes Mother Nature has thrown our way. And, as if that’s not enough, the
dramatic falls in investment markets have swallowed up a sizeable chunk of income insurance
companies relied on to prop up their balance sheets.
Insurance companies, however, soldier on, as do consumers getting their lives back on track
after a disaster. The car insurance sector, in particular, has also had to contend with greater
competition, driven largely by the entry last year of Comminsure and Real Insurance who
immediately set out to aggressively win a slice of market share. This can only benefit consumers
because as competition hots up, premiums become more attractive. Good drivers are a car
insurer’s dream and the battle for these drivers is a constant tussle between companies.
A NECESSARY EVIL?
Most people view comprehensive car insurance as a grudge purchase – they have to be insured
but they resent paying for it. They buy it for one of two reasons:
1. It is a condition of their car loan.
2. They want the security of having the car replaced/repaired in the “unlikely” event it is
damaged or destroyed.
Those who are in the market for car insurance are also in the market for saving money. Apart
from the obvious – driver’s age and gender, locality of car, frequency of driving, vehicle
specifications – there are limits to ways and dollar amounts you can save. However, CANNEX