Frequently Asked Questions

Personal Insurance > Coverage Queries

• Q: Which companies are you agents for?

  A:

  Legally we represent our clients as their agent ..... we are not agents for any insurance company. We are obliged to provide you with professionally researched advice so that you can make an informed decision about what policy suits you best. If we were an agent of an insurer we would have a conflict of interest with our duty to you as our client.              

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• Q: I haven't heard of that company you have recommended?

  A:

  Many insurers choose not to advertise heavily in the media as they prefer to deal through brokers to save marketing costs and administrative costs in dealing directly with customers or they may have a particular market niche. Therefore these companies can be relatively unknown to the general public but can be much more substantial than the names we see in the media on a regular basis. Donnellys has a responsibility to ensure that any insurer we recommend to clients is an authorised insurer under Australian prudential regulations and preferrably has an external financial security rating at an approved level.

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• Q: Can I start my policy now before my current policy expires?

  A:

  We normally advise clients not to cancel another policy before expiry because that may incur a penalty charge by their insurer. However, if the existing cover is not adequate or the price difference is large enough it may be worthwhile transferring cover immediately. If clients are paying monthly directly to an insurer it is usually possible to cancel a policy mid term without penalty providing sufficient notice is provided to the insurer and finance institution.

    

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• Q: Can I get a discount for combining both my car and home policies with you?

  A:

  Insurers that provide a multi-policy discount as a marketing ploy to get more business often charge more in the first place so receiving a multi-policy discount may be false economy! The quality of their products may be inferrior as well which is more important than a possible cheaper premium.

  Donnellys focus is on providing clients with the "best value" policy on an individual basis which takes account of the quality of the product and the premium cost. However, we do charge a lesser broker fee for clients with multiple policies arranged through Donnellys as an incentive for clients to do more business with us.

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• Q: Can I arrrange cover over the phone with you?

  A:

  Most of the policies we handle can be done electronically with insurers in which case they do not need any paper work signed. Accordingly most policies can be handled over the phone and we allow 14 days credit for clients to pay their premiums or we can arrange pay by the month premium instalments.

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• Q: My premium has increased but I have not had any claims?

  A:

  Australia has a problem with a very small premium pool (2% of the world market) and a high natural disaster claims occurrence such as storms, floods, bushfires (well in excess of 2% of the world market). Accordingly, premiums need to rise across the board to sustain the industry in Australia.

  However, you can be assured that we research the insurance market constantly to ensure that we offer you the best value policy available on renewal each year and we will recommend a change of insurer when that is warranted.

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• Q: What methods of premium payment do you offer?

  A:

  We offer two methods of payment: annually or monthly. Our monthly payment system is handled by a financier which pays your premium in advance to your selected insurer so you repay them monthly including a small finance charge.

  Some Insurers offer monthly premium payments "at no extra cost" as a marketing edge but often the annual premium is higher and includes a margin for instalment payments so there might not be any saving as expected. Their policy coverage may not be as good either. Refer to the  Easypay section of our Website for further information

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• Q: How do you choose which insurer to place my policy with?

  A:

  Some insurers only deal directly with the public but most deal through brokers and some only deal through brokers to reduce their operating and marketing costs. We deal through a selected number of preferred insurers which provide quality cover, competitive premiums, prompt and fair claims service and are financially stable.

  Generally we obtain at leasst 3 quotations from a range of insurers that we know are competitive for a particular policy &/or market segment and which satisfy our service standards.

  Our recommendation to you would be based upon our assessment of which product provides you with thr best value protection taking account the quality of the cover to be provided and the premium competitiveness.

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• Q: I'm late paying my premium - am I still covered?

  A:

  Under our agreement terms with your insurer, you need to advise us by the expiry date of your policy if it is your intention to renew your policy. If you need further time we can allow you up to 14 days credit to arrange payment or we can arrange a pay by the month facility for you.

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