Insurance Woes

[kiwiland 3]

I am 75 years old,retired, living at Whangaparaoa and for the last 40+ years insured my car with AA Insurance. My last claim was circa 1963.My current car is a 2001 E39 530I ex japan with top spec. This year for an "agreed value" of $32,700 I paid $732.00 premiums. The agreed value was high I know but was last January. I have just received my renewal notice and am astounded to see that although the "agreed value" has been reduced to a more realistic $22,000 the premium has gone up to $755.00. So we take a third off the cover but still increase the premium! As I have had the 530I now for 5 years and averaged 5,000km per year I seem to be paying a lot to store the car in my garage.

One of the problems with being retired is you lose touch with current costs, am I paying too much? could I do better elsewhere?

Comments invited, also PM proposals from any Insurance reps on the forum!

[Mike 1]

woah, my 2000 540i Msport (not worth as much as yours) is around the $650 or $700 mark for full insurance and glass cover etc. And thats for a 23 y/o driver. Do premiums start going up again as you get older (no offence meant)

[kiwiland 3]

woah, my 2000 540i Msport (not worth as much as yours) is around the $650 or $700 mark for full insurance and glass cover etc. And thats for a 23 y/o driver. Do premiums start going up again as you get older (no offence meant)

One thing I forgot to include was that the ratbags at AA didnt even have the courtesy to mention the premium increase or value decrease, just a bold demand for money almost. Must think they have a captive customer

[_ethrty-Andy_ 2122]

woah, my 2000 540i Msport (not worth as much as yours) is around the $650 or $700 mark for full insurance and glass cover etc. And thats for a 23 y/o driver. Do premiums start going up again as you get older (no offence meant)

I pay 1200 for an E30 worth 5000 haha. insurance companies arent your friend! But yes the premiums do go back up after 65ish depending on your history

[Wom 0]

A lot of insurance premiums are going up or have gone up over the last year or so.

Lots more costs due to number of claims, higher costs of claims with newer vehicles being expensive to repair, higher staffing costs etc etc.

Although, I think it is rude that they reduce your cover by 1/3 yet bump up the premiums at the same time.

I'd hate to imagine what the premiums would have been if the cover level was the same though.

I would suggest getting some quotes elsewhere (I work in life insurance so can't help you sorry, but can give you the name of a couple of very good advisers if you want them).

I've heard lots of horror stories about State (and my partner has experienced some very poor service from them), so even though they are the cheapest, I wouldn't recommend them.

I heard really good things about NZI, so I got a quote from them ... they were a lot cheaper than what AA and AMI quoted me for the same cover (more than State though), and they are supposed to be really good for vehicle insurance, so I went with them.

Haven't had to claim through them yet so can't comment on their claims paying ability (very important with insurance), but my adviser said his clients have never had issues with them and they have been really good to put business through to.

[DRTDVL 0]

same thing happened with my gf (30 yrs old shhhh i didn't say that) her 307 went from 18,000 to 15,000 and premiums went from $750 to $1000 that was with state... I called around and got agreed value of 18,000 and premium of $650 with ami... would be cheaper still if we moved contents and my cars there also

[M3_Power 636]

Premium has gone up across the board for insurance (be it motor vehicle, property or house and contents) There's been quite a few large payouts recently and big losses from certain companies.

I'd shop around - try AMI first (over the phone) - they would be the cheapest around I would say and a lot of panel beaters seems to like them when it comes to claim times. Provided your car isn't a modified beast, AMI should welcome you with open arms (if it's a modified beast, don't even bother, they'll just refer you to CLIC - AMI's version of NAC)!!

I heard really good things about NZI, so I got a quote from them ... they were a lot cheaper than what AA and AMI quoted me for the same cover (more than State though), and they are supposed to be really good for vehicle insurance, so I went with them.

Haven't had to claim through them yet so can't comment on their claims paying ability (very important with insurance), but my adviser said his clients have never had issues with them and they have been really good to put business through to.

I've been with NZI for quite a number of years and have noticed an increase for this year's renewal (they've had some big payouts this year, but not as bad as BMW Insurance - i.e. Allianz (way too many full write offs, to the point that BMW dealers don't actually bother quoting their premiums any longer as it's just ridiculous) - the thing with NZI is they've got quite a few different products for motor vehicle and not all are equal - just make sure that you are on a good policy from them and you'll be fine.

My word of advice to those seeking insurance - go to your favourite panel beater and ask them who they like to deal with when it comes to claim time - they'll tell you straight off the bat who the best insurance companies are and who to avoid - afterall, a policy's only as good as when you really need it.

Edited December 21, 2009 by M3_Power

[BM WORLD 1258]

maybe try them for classic car cover if doing under 5000km per year .

tell them your in the bmw car club etc .

car is garaged etc

[Braeden320 0]

Have heard a few similar storys about AA.

I have all of my insurances through my bank (ASB)

Great advice from M3 power re: Panelbeaters.

[antil33t 90]

AA were the most expensive option for me when I was looking for insurance, So I ended up just sticking with AMI.

They have allready paid out once for a vehicle of mine (Innocence claim, I was on 3rd party, hit by an uninsured moron)

So, Decided to stay with em.

[hybrid 1039]

Was insured with AA for many years and they had always been good to me..

when I bought the 330 .. AA would not even insure me claiming it was too powerful for my age bracket. I was 27 at the time. ???

AMI has always been the go for me and they are partnered with my perfered repairer who is certified to do major work on BMW's as they are one of only a few people with the proper electrode spot welders in the country. (precision autowerks)

Their work is immaculate too.

[1rotty 40]

I have both mine insured with Classic Cover for agreed values-$11k for the 540 & $8k for the 325-total under $600 pa.

Worth looking at since you do low k's.

[Grant 4]

Just consider yourself lucky that you are not in the USA.

I'm considered a new driver (even though I have had a NZ drivers licence for 20 years) here so I pay about US$900 a year to insure my VW Passat for Third Party only.

It was almost going to cost what I paid for the car to insure it with comprehensive cover.

I assume that the cost will come down once I have been here a while longer (assuming I don't have any accidents or tickets etc). I have now had my Californian drivers licence for just over a year.

The liability laws here are the killer for insurance premiums.

[turbolizard 38]

Just consider yourself lucky that you are not in the USA.

I'm considered a new driver (even though I have had a NZ drivers licence for 20 years) here so I pay about US$900 a year to insure my VW Passat for Third Party only.

It was almost going to cost what I paid for the car to insure it with comprehensive cover.

I assume that the cost will come down once I have been here a while longer (assuming I don't have any accidents or tickets etc). I have now had my Californian drivers licence for just over a year.

The liability laws here are the killer for insurance premiums.

You might be paying a bit extra as a new customer, but don't expect it to get cheap like it is in NZ - you are spot on with the liability issue. NZ has it pretty good when it comes to insurance costs, thanks to our relative lack of ability to sue people. Most everwhere else in the world car insurance costs a lot more than in NZ. Just like the cost of fuel, it feels expensive when you pay the bill, but it is cheap.

However, back to the original poster's question - you do seem to be paying over the odds for a NZ situation. The agreed value also makes little difference to the premium, as the first $5k of damage is the easiest to do and the bulk of the risk for the insurer. A total lost is much less common.

[topcat 11]

i do sympathize with your situtation,and have no real answers,

but our company does about 25K worth of insurance a year as a farm package.

as such are able to 'pull strings' when new cars come and go thru out the year.(mainly me),

(drives the old man up the wall)(dont tell him i said that).

Qiute reasonable insurance rates.

You could 'join the company' and be part of our 'farm policies'

to get some great rates.

just another option if you run out of options

cheers marty

[RvT 9]

Hi Kiwiland

I am with AMI and have had no issues with them. Last claim was 5 years ago. Wife's Allroad is insured for $80k and the premium was $466.57. My M5 is insured for $120k and premium was $610.31 Excess on both is $250

On the face of it, I would say you are being ripped severly. We have all our private insurance plus house(s) with them so we get Multi saver discounts.

Hope this helps

[kiwiland 3]

Thanks for all the comments guys, as AMI seemed to be the overall leader have gone to them and have an offer for virtually same cover as AA but $200.00 cheaper. Pat on the back for the Forum.

[Wom 0]

that's good to hear

if I ever change then it'll probably be AMI at the top of my list

[boydusM325i 0]

I have my E30 M325i insured through Classic Cover Insurance and full cover $15,000 agreed value only costs me $283 per year. (5000km per year restriction) They are very easy to deal with, as far as insurance companies go..

Classic Cover Insurance

[Shady 0]

You say 5K year restriction. Does that mean you cannot do more than 5K a year? If so, how do they control it? Do they do yearly km checks or something? Whats the penalty?

[e30ftw 396]

You say 5K year restriction. Does that mean you cannot do more than 5K a year? If so, how do they control it? Do they do yearly km checks or something? Whats the penalty?

Well if you lodged a complaint they would obviously check you stick within your policies rules. Penalty would more than likely be refused cover.

[antil33t 90]

You say 5K year restriction. Does that mean you cannot do more than 5K a year? If so, how do they control it? Do they do yearly km checks or something? Whats the penalty?

The penalty is getting done for insurance fraud if/when you crash.

and having the bill of your car and whatever else you may hit. Be it a 1million dollar Ferrari or not.

[DRTDVL 0]

the do 5, 8, and 10,000km cover...

they cover my racecar for 8k a year of non-event\practice\testing\etc mileage..

[Palazzo 438]

Try an insurance broker, pick 3 at random from the yellow pages and see what they come up with. The first time I did this, I saved over 30%, with the same insurer.

[tonylauno1 7]

I am with AMI and have had no issues with them. Last claim was 5 years ago. Wife's Allroad is insured for $80k and the premium was $466.57. My M5 is insured for $120k and premium was $610.31 Excess on both is $250

That is some good deal, even without multisaver I sure it's probably like 10% higher.

Like a lot of people have discovered, premiums are now very high, maybe it has something to do with age brackets.

Mine went from $650 to $850 to $950 for next year. Value drop to $15k for my 328ci with State Insurance.

Can't blame it on them though, because in the last two years the value of e46 coupe have dropped heaps due to more people selling and less people buying.

Went to AMI who insure it for $18k at $850 for the next year. can't help but think if a claim was to be made, they could probably say the car is worth $15k; I'm sure all the insurance companies have the same car value to work from.

Something I don't understand was 2 years ago I had a $3000 Honda and the premium was $600. Then I changed to a $20k BMW and the premium was $650.