Re: Insurance Rip-offs. You won't belive this!
I had a boss once working in the construction game and when he didnt want a job he would put in an overpriced quote so that he wouldnt get the job... alternatively if he did get the job it would be at a nice premium.
Kinda sounds like what they are doing here. Are you in a flood prone area or at a more than usual risk for some reason that they dont want your business?
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GIO lost my business in 1995 when they screwed me over on an insurance payout of a few hundred dollars. Over the past 14 years they would have made more than that back from me, but instead that money went to NRMA.
Stories like yours Minty are a real vindication for me in refusing to have anything to do with GIO anymore.
The other thing you gave to consider is that this is not some small construction contractor this is a large company whom I have now publicly outed as a result of their outrageous increase. I wonder if the bad PR is worth it?
Anyway, if you are with GIO expect some sort of increase as customers like me desert them and they try to recoup the loss of business with an increase to your premium.
Also, all the other companies I rang asked quite in depth questions.... The point I am making is that these other companies (who gave me much cheaper quotes) all know where I live, 2 of them even asked how much I was paid out from my claim 2 years ago.
Then again, it depends who you speak to... some say GIO is good and some say NRMA is bad. I dunno :dunno:
Salesmen/underwriters generally know if there's been an across the board rate increase in their company and would have probably told you rather than calling their supervisor if that was the case.
Given that, it sounds to me they've either changed the terms of your policy (such as including flood cover) and therefore had to include new rating factors, they've found they were previously undercharging you for the risk and have revised the rating factors or they've made a inadvertent error keying in the rating factors at the last update that somehow only includes a limited number of policies they’ve not included in the testing sample.
There is an ‘insurance cycle’, just like the economic cycle, where prices for risk go up and down over time, but that wouldn’t account for those fluctuations.
As an aside, if you are concerned about flood cover, check your policy. Many policies cover storm damage, but not damage from the resulting floods.
In 1982 I brought a brand new HDT Commodore rang GIO because I was under 25 they wouldn't insure it and if i was over 25 the premuim was $2100 I then rang insurance brokers and got insurance for $450 needless to say I haven't talked to gio since,interesting that after all these years to hear a similar story
A significant recent flood in your area will blow out the modelling of the risk and significantly increase the extra you pay. This additional will decrease over time provided there are no more floods in your area.
Do the significantly cheaper insurance policies cover you for flood?
Another note worth mentioning is the fact that my house is actually built up off the ground, about 1m from memory, so it would take a catastrophic flood to get to that height. The flash floods in June 2007 didn't get anywhere near entering the house.
I would reckon there must be a big difference in the coverage offered by GIO
when u consider that both GIO and AAMI are owned and operated by Suncorp.
The 1000 odd dollars difference between the 2 just don't make sense, unless the
GIO policy gives u greater coverage which my be the case, something in the small
print....however insurance company's can be very very stupid.
A few years ago i used to be insured with AAMI and had been for many years with no
claims, i brought a good used ute at auction, very cheap due to panel damage down
one side...i went straight to AMMI to get my policy changed over to the new vehicle
only to be told that they couldn't cover me if i already had damage to the Ute.
I offered to exclude the whole side of the ute and sign anything they wanted me to
sign...they said no thanks, so i went to NRMA told them the story, and they were
happy to take my money and considered the damage a non issue.
7 years later i still haven't made a claim.
They are all bar###ds, years ago the wife and I was in business together, we took out a insurance so that if one of us was sick or was hurt we could claim wagers, the wife done her knee in so in to hospital she goes, I hire TWO people to replace her, after three months she is back at work, we try to claim for the time she was off, the insurance company comes out and said now the business is in both names, yes I said, so the time she was off work it was still running, yes, so the whole time she was off work she was still getting money from the business, yes, well I am very sorry we cant pay her, the only way we could ever claim was to shut the whole show down.
Tried to put me off. I persisted and got paid out after a fight.
Would never again deal with them.
House and contents including flood cover was just under $600 in December.
I know where you are has quite an effect on the premium. No flood problems here, low crime rate/burglaries etc.
GIO ripped me off a car based on a "wording " when reported stolen
i said some bugger stole my car
the car was insured in someone elses name
moved everything else to RAC(except motorbikes which went elswhere ) , never looked back .
no good paying insurance if they dont pay when needed
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