Exposed: New breed of insurers forcing the ‘big guys’ to back-flip

September 6, 2012

Budget Direct applauds last night’s controversial coverage on Today Tonight, which they say exposes dodgy car insurance providers and encourages more Australians to “shop around”.

Budget Direct CEO Ram Kangatharan said his company was one of a new breed of insurers forcing the ‘big guys’ to back-flip and reduce their prices.

“Last night’s car insurance comparison on Today Tonight has whipped up a storm in the insurance industry that’s been brewing for some time,” Mr Kangatharan said.

“The emergence of a number of direct and online insurers over the last few years has increased competition and forced insurers with a large market share to go on the back foot.

“Today Tonight’s investigation into car insurance prices is another nail in the coffin for big insurers - they haven’t treated their customers fairly.

“Some big insurers continue to rest behind the loyalty of their customers and the reputation of their brand.

“We want to see, and I’m sure all Australians want to see, more of this type of consumer-oriented television that uncovers the myths about the prices being paid and how your present insurer looks after you.”

Mr Kangatharan said the Today Tonight broadcast exposed massive price variances between insurers for the same make and model of vehicle, some as high as $1000. “It’s astonishing that still only 10 per cent of Australians shop around for a better deal on their insurance, compared to 50 per cent of insurance customers in the United Kingdom,” Mr Kangatharan said.

“Australians need to be asking themselves ‘does my insurer offer me the lowest price possible’.

“With so much competition in the insurance market, we encourage all Australians to shop around and to take advantage of one of the many fantastic deals available online.

“Perhaps the only downside to Today Tonight’s coverage was it didn’t emphasise enough that cost isn’t the only important thing.

“Consumers need to consider cost, and the quality of cover and service that they’re getting.

“Increasingly there are many comparison websites that make this an easier exercise for the consumer.

“Here at Budget Direct we pride ourselves in offering great prices backed up by exceptional service, and we will continue with our promise of cutting the cost, but not the cover.”


For further information or interviews please contact Brad Seymour, Director Partnerships & Communication, Budget Direct (Auto & General) at 07 3377 8937  or mediaenquiries@budgetdirect.com.au

Budget Direct was established as an insurance provider in Australia in 2000.  It is part of the international Budget Insurance group of companies headquartered in the British Isles. The group provides more than 6.8 million policies to insurance customers and administers $2 billion in premiums annually. Budget Direct offers Motor, Home & Contents, Health, Life and Travel Insurance as well as Roadside Assistance.

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