The off topic thread 5.0

[Zidane98]

Our car insurance as well as house went up a lot as well. Was on the News the other night. Due to floods nationwide etc behind cost increase

Where I live there's virtually no chance of flooding so that should be irrelevant to my policy. Surely insurance policy should reflect the risk of your own policy having to pay out on flooding?

 

[Zidane98]

How would COVID have negatively impacted insurance? Car insurances would have had historical lows during the various lockdowns. Home insurances I'm guessing would've been lower due to the vast majority being at home (less likely houses get broken into etc).

I get what you're saying, I just think it's easy to raise prices by whatever they want because they can hide it under the inflation banner.

Good point. I vaguely recall an article about how car insurance claims were way down between 2020-22 for this reason. Doubt insurance companies reduced premiums as a result.....

 

[SM]

How would COVID have negatively impacted insurance? Car insurances would have had historical lows during the various lockdowns. Home insurances I'm guessing would've been lower due to the vast majority being at home (less likely houses get broken into etc).

I get what you're saying, I just think it's easy to raise prices by whatever they want because they can hide it under the inflation banner.

I just said, the increased labour costs, and material costs brought on as a by-product of COVID.

 

[Jatz]

I just said, the increased labour costs, and material costs brought on as a by-product of COVID.

How? What about the lockdown increased labour/material costs?

 

[Jatz]

And even if that's true, as I said, it would've been negated by historically low pay outs, especially in relation to car insurance.

 

[SM]

How? What about the lockdown increased labour/material costs?

You don't think having a lockdown might make it a bit harder to source labour and importing materials from O/S?

Have you missed the spiralling inflation and labour costs of the last few years??

A 5 second Google:

Construction Cost Escalation

NSW residential construction costs continue to rise at alarming rates. In the period 2020-2021, the average increase in construction costs for an average residential home rose by 20%. Since 2021 they have risen, annually, at approximately 10.3%. In NSW there was a 4% rise in building costs...

www.blackwellshort.com.au

 

[SM]

And even if that's true, as I said, it would've been negated by historically low pay outs, especially in relation to car insurance.

I thought we were talking about home insurance.

 

[Jatz]

You don't think having a lockdown might make it a bit harder to source labour and importing materials from O/S?

Have you missed the spiralling inflation and labour costs of the last few years??

A 5 second Google:

Construction Cost Escalation

NSW residential construction costs continue to rise at alarming rates. In the period 2020-2021, the average increase in construction costs for an average residential home rose by 20%. Since 2021 they have risen, annually, at approximately 10.3%. In NSW there was a 4% rise in building costs...

www.blackwellshort.com.au

That's talking about the construction of new homes, not existing ones.

There's the unexpected rain (which would make up a small percentage of overall insured houses) so yes, there are some impacts to a small number of overall policies but I'd love to actually see a breakdown of this 'rise' that's causing them so much grief that they've had to increase policies by up to 50%.

 

[Jatz]

I thought we were talking about home insurance.

Talking about all of it, it's all gone up. Not just insurances, electricity, water, rates etc.

I just think it's easy for these companies/council to lift prices because of inflation.

Further to that, with inflation on the way back down (albeit slowly), do you expect you'll see a reduction applied to your policies/utilities? As with the banks, they're quick to pass on any increases but notoriously slow to move on any decreases.

 

[SM]

That's talking about the construction of new homes, not existing ones.

There's the unexpected rain (which would make up a small percentage of overall insured houses) so yes, there are some impacts to a small number of overall policies but I'd love to actually see a breakdown of this 'rise' that's causing them so much grief that they've had to increase policies by up to 50%.

You think the construction force is split into existing and new homes with no crossover?

Finding construction workers and the materials needed either for repairs or new builds have spiralled post-COVID. I don't even know how this is an argument.

 

[SM]

Talking about all of it, it's all gone up. Not just insurances, electricity, water, rates etc.

I just think it's easy for these companies/council to lift prices because of inflation.

Further to that, with inflation on the way back down (albeit slowly), do you expect you'll see a reduction applied to your policies/utilities? As with the banks, they're quick to pass on any increases but notoriously slow to move on any decreases.

Inflation reducing isn't the same as deflation.

 

[Jatz]

You think the construction force is split into existing and new homes with no crossover?

Finding construction workers and the materials needed either for repairs or new builds have spiralled post-COVID. I don't even know how this is an argument.

No of course not but the number of houses needing insurance payouts is absolutely dwarfed by the number of houses being built every day/week/month/year.

Like I said, I'd love to see the breakdown of it. I get that people just like to accept it because 'that's the way it is', sometimes it's good to ask why.

 

[SM]

No of course not but the number of houses needing insurance payouts is absolutely dwarfed by the number of houses being built every day/week/month/year.

Like I said, I'd love to see the breakdown of it. I get that people just like to accept it because 'that's the way it is', sometimes it's good to ask why.

Believe me, I have asked why. I was on the strata committee at my last property and we drilled into it two years running to understand the breakdown of what was driving insurance premiums up.

 

[Zidane98]

Believe me, I have asked why. I was on the strata committee at my last property and we drilled into it two years running to understand the breakdown of what was driving insurance premiums up.

I had a look into it myself. Youi is underwritten by OUTsurance Group Ltd.


Their quarterly profits are up 38%.





I accept there will be a price increase for the reasons previously discussed but in my case they've gone for a 41% price increase when their company profits are up 38%. Doesn't jive for me at all.


I've sent them an email because within 20 minutes I was able to find two other similar policies for around $1150.00


And I have my car insurance with Youi (they are competitive with this) plus have been a Youi home insurance customer since 2009 without one single claim.


Interesting to see what they'll come back with.

 

[Bradesmaen]

I had a look into it myself. Youi is underwritten by OUTsurance Group Ltd.


Their quarterly profits are up 38%.


View attachment 1934490


I accept there will be a price increase for the reasons previously discussed but in my case they've gone for a 41% price increase when their company profits are up 38%. Doesn't jive for me at all.


I've sent them an email because within 20 minutes I was able to find two other similar policies for around $1150.00


And I have my car insurance with Youi (they are competitive with this) plus have been a Youi home insurance customer since 2009 without one single claim.


Interesting to see what they'll come back with.

just be thankful you don't live in Ireland... There are not enough insurance companies in the market so you pay upwards of 1000 euro for car insurance for even old cars. Hell a friend of mine at work who just went back to driving, after years of an illness that prevented him from driving, has to pay 6k Euro on a 14 year old VW Golf. Car cost him 9k.

 

[Jatz]

just be thankful you don't live in Ireland... There are not enough insurance companies in the market so you pay upwards of 1000 euro for car insurance for even old cars. Hell a friend of mine at work who just went back to driving, after years of an illness that prevented him from driving, has to pay 6k Euro on a 14 year old VW Golf. Car cost him 9k.

Why would he 'have' to pay that? That makes no sense, you just wouldn't insure it.

 

[Bradesmaen]

Why would he 'have' to pay that? That makes no sense, you just wouldn't insure it.

He would, they don't do insurance like Australia does for car (i.e comp 3 party insurance with registration).

EDIT: Should clarify, that is for Comprehensive, but even 3rd Party (which you have to buy, separate to registration) which is mandatory was something like 5k.

 

[Jatz]

He would, they don't do insurance like Australia does for car (i.e comp 3 party insurance with registration).

EDIT: Should clarify, that is for Comprehensive, but even 3rd Party (which you have to buy, separate to registration) which is mandatory was something like 5k.

So you're forced to get insurance in Ireland? He'd have paid more in insurance in 18 months than what the car is worth. Just catch the bus/train.

Or at the very least, save up for 2 or 3 years and buy a much better car.

 

[Zidane98]

So you're forced to get insurance in Ireland? He'd have paid more in insurance in 18 months than what the car is worth. Just catch the bus/train.

Or at the very least, save up for 2 or 3 years and buy a much better car.

Isn't 3rd party property damage insurance compulsory for cars in NSW?

It isn't in Vic or Act.

 

[Bradesmaen]

So you're forced to get insurance in Ireland? He'd have paid more in insurance in 18 months than what the car is worth. Just catch the bus/train.

Or at the very least, save up for 2 or 3 years and buy a much better car.

He already catches the bus but lives way outside of Dublin. He can't afford a car and needs it now (long story). In a few years his insurance will go down as he'll get no claim bonuses and be considered less risky.

But yes, you are forced to get insurance. You have to display it along with your Tax disk (registration) in the front of the car and the Garda can fine you up to 5k for driving uninsured. I think it's an EU law, but Ireland needs it anyway because too many people were driving clunkers and not caring about hitting things.... and I've seen how many damaged cars are around in Dublin, it's ridiculous. They're horrible drivers.

 

[Zidane98]

He would, they don't do insurance like Australia does for car (i.e comp 3 party insurance with registration).

EDIT: Should clarify, that is for Comprehensive, but even 3rd Party (which you have to buy, separate to registration) which is mandatory was something like 5k.

Considering the value of the vehicle isn't covered (9k) I just don't see how a 3rd party property damage premium of 5k can be justified!

Is it a zero excess thing perhaps?

 

[Bradesmaen]

Considering the value of the vehicle isn't covered (9k) I just don't see how a 3rd party property damage premium of 5k can be justified!

Is it a zero excess thing perhaps?

Didn't specifically ask him that, I assume it's just the risk he is.

 

[Jatz]

Isn't 3rd party property damage insurance compulsory for cars in NSW?

It isn't in Vic or Act.

Yeah it's called a green slip up here.

 

[Jatz]

He already catches the bus but lives way outside of Dublin. He can't afford a car and needs it now (long story). In a few years his insurance will go down as he'll get no claim bonuses and be considered less risky.

But yes, you are forced to get insurance. You have to display it along with your Tax disk (registration) in the front of the car and the Garda can fine you up to 5k for driving uninsured. I think it's an EU law, but Ireland needs it anyway because too many people were driving clunkers and not caring about hitting things.... and I've seen how many damaged cars are around in Dublin, it's ridiculous. They're horrible drivers.

That's deadset daylight robbery. There's no way that can be reasonably justified. Absolute rort.

 

[Bradesmaen]

That's deadset daylight robbery. There's no way that can be reasonably justified. Absolute rort.

Lack of competition in the market will do that... sound familiar with supermarkets?