Clever marketing without all the facts
A media release on the 17th of July advised of a decision by the Australian Security and Investment Commission (ASIC) notifying a large corporation that their advertising of an insurance product was potentially misleading. An add running last year mostly on outdoor media and buses claimed Woolworths car insurance saved customers, on average, $240. It did have a disclaimer at the bottom of the add but really, when it blasts past you on a bus how are you supposed to read it. After initially not commenting, Woolworths came out and said in response to ASIC's concerns, "we accept ASIC's feedback and will this into account when we run this sort of marketing in the future." And that's it!.........

So we buy protection of our life, family and assets off a shelf like a bottle of Sauce.



Some of the basic differences was the basic excess was $900 compared to $500 dollars. The undisclosed driver excess was over $2,000 compared to Zero. Also when looking at key benefits the sub limits were often lower by half what you would get on our AIMS policy. In this one example we ran we also came out $150 less on premium by the way. So this client not only gets higher benefits and more manageable excesses but a lower premium.
With a number of the direct insurers it's what they are not telling you that you need to be cautious of. When the QLD floods were on a few years back a number of insurers were under the microscope for alleged unclear policy conditions and not openly disclosing cover. We wont go too deeply into this but suffice to say 2 years on and we are still seeing the same style of advertising from the same insurers! So it's fair to say that nothing has been learned.

Remembering that with Insurance it is only tested when something happens. Why find out then that your insurance payout is potentially thousands less or worse still does not cover you at all. Some policies have limits on how far you drive your car. Have you then turned around and asked them what happens if we go beyond that 'short distance to work.' Or what if on a particular day my car was not parked in my garage.
Do a Google search on 'cheap insurance'and see what comes up. When the first word you see is Budget alarm bells should be ringing. You've then got a 100% online insurance company. Meaning there is no one to talk to about what is best for you. A predetermined set of formulas will advise on how to best protect yourself. You've also got a comparison site that is actually run by a company who IS one of these direct insurers.

As Insurance agents we 100% represent you in insurance dealings, NOT Insurance companies. We also have used our buying power to negotiate industry leading policy wordings that include benefits that are tailored to your needs. Try to look beyond the marketing and consider what would I do if I had a fire at my home? Will that premium saving translate into a positive result in rebuilding our home and life. Consider the Policy Disclosure statement of any Insurance product you may purchase and ask as many questions as you need until satisfied that you are getting the product you need. Likewise talk to a broker or adviser who is trained and licensed under the Corporations Act to give you advice on Insurance products.
** Information provided within this blog is of a general nature and no individuals personal circumstance has been taken into consideration. Please read the relevant PDS and ensure the policy meets your needs. Examples provided were for internal comparison purposes only based on a 33 year old male client driving an 8 year old hatchback living in postcode 2040.
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