Car insurance slashed by 20 per cent
A SIGNIFICANT drop in motor vehicle claims has prompted a bevy of Queensland car insurers to slash their premiums and give consumers a much-needed windfall during the COVID-19 pandemic.
Queensland insurers RACQ, Suncorp Group and Youi have lowered their premiums for motor vehicle insurance by as much as 20 per cent after recording a significant drop in the number of accident claims.
The steep fall in crashes comes as Queenslanders are urged to stay at home and avoid non-essential travel.
Sunshine Coast-based insurance giant Youi is offering customers a 15 per cent refund on their premiums for three months after its vehicle claims fell by 40 per cent.
Youi Managing Director Hugo Schreuder said fewer payouts had created a windfall for the company, which it would pass on.
"Rather than bank those profits we want to pass on those savings to our customers," he said.
"It's a measure we've taken that we believe is the right thing to do.
"These are tough times and a lot of people are struggling."
Data provided by Transurban reveals Brisbane's average daily traffic has fallen by as much as 39 per cent in March.
Traffic decreased by 9 per cent on March 15, 27 per cent on March 22, 39 per cent on March 29 and 38 per cent on April 5.
The biggest falls, 12.5 and 12 per cent respectively, were recorded in the Clem 7 tunnel and on the Go Between Bridge.
Suncorp Group is offering home and motor insurance customers, who are experiencing financial hardship as a result of COVID-19, a 20 per cent discount or a three-month waiver on premiums.
Motor vehicle customers of RACQ, the state's largest insurer, will save an average of $30 per policy and premium increases have also been frozen.
RACQ spokesman Paul Turner said while help to pay an insurance premium was the number one ask from RACQ members, help with banking and home loan repayments had also generated concern.
"There'll be a lot of people out there who are going through tough times and haven't come to us to ask for help yet - we want those people to come forward," he said.
Mr Schreuder said Youi's discount extended to new and existing customers who reported less use of their vehicles.
Youi has reported a downturn in inquires but its home and contents business remains strong as more than 1000 staff work from home.
Mr Schreuder encouraged people stuck in home isolation to use their time wisely and shop around for insurance deals.
"Shopping around for car insurance and home and contents and seeing if savings are available is not a bad idea," he said.
Originally published as Car insurance slashed by 20 per cent