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03-08-2010, 02:16pm
http://smh.drive.com.au/insurers-charge-...113fd.html
Insurers charge more for demerit point losses
MELISSA SINGER CONSUMER AFFAIRS
August 3, 2010
INSURANCE companies are charging higher fees for green slips for drivers who have lost demerit points than for those who have caused accidents.
Other companies are artificially inflating their premiums.
At least one insurer has been caught ''inventing'' driving offences on the green slip renewal notice of a customer with a perfect driving record.
The combined effects of the global financial crisis and a rise in the number of claims mean compulsory third party premiums are increasing but many drivers may be lured into paying more than they should.
While ''model'' drivers - generally aged 30 to 69 with late-model cars and clean records - pay about the same price, the way insurers treat driving offences and accidents can result in premium differences sometimes worth hundreds of dollars.
The Herald compared premiums for AAMI, NRMA, GIO, CIC-Allianz, Allianz, QBE and Zurich - for drivers with different profiles. Allianz, CIC-Allianz, QBE and Zurich did not penalise drivers who had been in accidents but the other three insurers imposed hefty loadings. AAMI recorded the biggest jump, from $461.75 to $690.56.
While Allianz disregarded accidents, it took a more punitive approach to drivers who had lost demerit points, adding a $54 loading for three or six points. CIC-Allianz and QBE also penalised drivers who had lost demerit points.
Green slip prices have jumped an average of 12.5 per cent in Sydney in the past year, according to a report by the investment bank JPMorgan.
Mark Cooper-White smelled a rat when he received a green slip renewal notice from his insurance company, QBE. The cost had shot up $150 in a year and he discovered he had been billed as if he had a black mark against his driving record.
The trouble is Mr Cooper-White, a Presbyterian minister from Clunes near Lismore, has not had a run-in with the law - or another car - for 20 years.
It appeared from the renewal notice that QBE had ''invented'' demerit points, with the onus on Mr Cooper-White to prove he qualified for a good driver discount, a $63 difference in price.
''That is a dodgy way for an insurance company to print their forms,'' said his wife, Lois. ''I wonder how many people just pay the bolded amount and don't read the fine print.'' QBE would not comment but its website says the company keeps a record of a customer's demerit point status but not details on the number of points lost.
In a separate case, AAMI sent a green slip renewal notice to a customer who it falsely claimed had caused an accident.
The motorist, who wished to remain anonymous, contacted AAMI, which erased the accident from her record, citing a computer glitch.
A spokesman for the Motor Accidents Authority, which oversees green slip premiums, said claims had risen by about 15 per cent in 2008-09 and the global financial crisis meant a massive drop in investment returns - both of which forced up premiums.
''While interest rates have begun to increase again, investment returns are still not back to previous levels,'' he said.
Mr Cooper-White said rising green slip costs had forced him and his wife to sell at least one of their cars and use their motorbikes more often.
Insurers charge more for demerit point losses
MELISSA SINGER CONSUMER AFFAIRS
August 3, 2010
INSURANCE companies are charging higher fees for green slips for drivers who have lost demerit points than for those who have caused accidents.
Other companies are artificially inflating their premiums.
At least one insurer has been caught ''inventing'' driving offences on the green slip renewal notice of a customer with a perfect driving record.
The combined effects of the global financial crisis and a rise in the number of claims mean compulsory third party premiums are increasing but many drivers may be lured into paying more than they should.
While ''model'' drivers - generally aged 30 to 69 with late-model cars and clean records - pay about the same price, the way insurers treat driving offences and accidents can result in premium differences sometimes worth hundreds of dollars.
The Herald compared premiums for AAMI, NRMA, GIO, CIC-Allianz, Allianz, QBE and Zurich - for drivers with different profiles. Allianz, CIC-Allianz, QBE and Zurich did not penalise drivers who had been in accidents but the other three insurers imposed hefty loadings. AAMI recorded the biggest jump, from $461.75 to $690.56.
While Allianz disregarded accidents, it took a more punitive approach to drivers who had lost demerit points, adding a $54 loading for three or six points. CIC-Allianz and QBE also penalised drivers who had lost demerit points.
Green slip prices have jumped an average of 12.5 per cent in Sydney in the past year, according to a report by the investment bank JPMorgan.
Mark Cooper-White smelled a rat when he received a green slip renewal notice from his insurance company, QBE. The cost had shot up $150 in a year and he discovered he had been billed as if he had a black mark against his driving record.
The trouble is Mr Cooper-White, a Presbyterian minister from Clunes near Lismore, has not had a run-in with the law - or another car - for 20 years.
It appeared from the renewal notice that QBE had ''invented'' demerit points, with the onus on Mr Cooper-White to prove he qualified for a good driver discount, a $63 difference in price.
''That is a dodgy way for an insurance company to print their forms,'' said his wife, Lois. ''I wonder how many people just pay the bolded amount and don't read the fine print.'' QBE would not comment but its website says the company keeps a record of a customer's demerit point status but not details on the number of points lost.
In a separate case, AAMI sent a green slip renewal notice to a customer who it falsely claimed had caused an accident.
The motorist, who wished to remain anonymous, contacted AAMI, which erased the accident from her record, citing a computer glitch.
A spokesman for the Motor Accidents Authority, which oversees green slip premiums, said claims had risen by about 15 per cent in 2008-09 and the global financial crisis meant a massive drop in investment returns - both of which forced up premiums.
''While interest rates have begun to increase again, investment returns are still not back to previous levels,'' he said.
Mr Cooper-White said rising green slip costs had forced him and his wife to sell at least one of their cars and use their motorbikes more often.
