By Maria Bekiaris,
, November 2009
Virgin Money has made its foray back into the Australian financial services market by introducing car insurance offering comprehensive, third party property and third party fire and theft policies, underwritten by one of South Africa’s biggest general insurers, Auto & General Insurance Company.
“Australian motorists aren’t getting a fair deal when only two giant players own 75 percent of the car insurance market – the time is ripe to give the industry a complete overhaul,” said Sir Richard Branson, referring to the fact that most insurance brands in Australia are owned by Suncorp or Insurance Australia Group.
To kick things off, Virgin Money is offering 13 months for the price of 12 when customers take out comprehensive cover online before December 31, 2009.
Premiums are capped for two years. So if your circumstances don’t change your premium will stay the same when renewal time comes.
According to Virgin Money its comprehensive car insurance policy comes up 35% cheaper than the average policy price of AAMI, GIO, NRMA and QBE (using a standard car and driver as criteria).
Money did our own comparison for a 39-year-old male driving a 2006 Holden Commodore, parked in the western Sydney suburb of Parramatta.
Virgin Money did come in cheapest at $842, followed by AAMI at $951, with both NRMA and GIO quoting just under $1100.
Not quite 35% cheaper but still a strong result. Price is not the only factor to consider when comparing car insurance.
It’s important to look at the features. Virgin Car Insurance appears to have standard features comparable to most major insurers.
For example, the comprehensive policy offers new-car replacement, a hire vehicle if your car is stolen, and a lifetime guarantee on repairs.
The policy features are what you’d expect from a standard car insurance policy. Based on our one comparison the premium appears to be competitive.
It becomes even more appealing when you add the one-month extra free and the capped premium to the mix.
It’s important to shop around and get a few quotes to see how it stacks up for you.
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