Insurance quote different by property address

I am due to renew the building insurance on a property, and am shopping around for a few online quotes. I've even done an online quote with my current insurer (RAC WA) to compare against the renewal invoice they've sent out. Of course, the online quote is always cheaper (the last five years at least) as opposed just paying the renewal, and this year is no exception. $35 cheaper via the online quote.

Now since I don't trust any insurance company, I thought I would check how 'smart' the online quote system is, and do the exact same online quote but with the address of the house next door. Same insured value, customer details, building features, construction details, etc. And it came back $60 cheaper.

And not just the house next door, every other address in the street that I tried came back with this cheaper quote.

I did this same check two years ago and there was no price difference, so something has changed. I've never had a claim with RAC, nor any building or contents claim with any insurer, so I can only conclude the system is recognising the address as an existing customer and attempting to block me from getting the cheaper 'new customer' price. How sneaky.

Has anybody else come across this? Would love to know if I am not the only one...

 

Probably because they are not existing customers.
Insurance companies make lots of money from customers that are to lazy or time poor to bother to change , we even rang our insurance company a few years back and told them we were unhappy with how much they were charging , we could get it much cheaper and would they try and be more competitive, or we would change , their reply was quite stunning.
So we left.

 

Same thing happens with car insurance and quite frankly I don’t know how it can be legal especially when they send you renewals telling you they are giving you an x% loyalty discount but that discount is coming from an artificially inflated base price and is still higher than their offer for new customers.

Try that crap in retail and find yourself getting massive fines from the ACCC but all perfectly legit for insurance....

 

100%

I take out a brand new car insurance policy every year for all the company cars. I personally find it prompts me to check out what the competition have on offer every year instead of staying loyal.

@Rex Have you tried the same comparison with another insurer?

 

@Tom Rivera Yep, no difference by house hunger with the other two companies I tried. Just an RAC thing.