Canstar reveals its 2022 Insurer of the Year Award winner

After assessing 20 insurance providers utilising a sophisticated and unique methodology, Canstar has named Budget Direct as the winner of its inaugural Insurer of the Year Award.

2022 is the first year Canstar has named an Insurer of the Year. According to Canstar Research, this award was introduced to recognise a provider that is offering value through its policies and services, as well as standing out in how it assists Australians to safeguard their assets.

The methodology compares both price and the functionality of insurance products over a customer’s journey with the products (e.g. from application to payment, service and cancellation, including claims and coverage). When tallying the total score for each provider, 40% is based on car insurance and 40% on home and contents insurance, with the final 20% based on customer satisfaction. Car insurance and home insurance were selected as they are the most common types of policies the majority of Australians are currently paying for, according to Canstar Research. 

For the customer satisfaction element of the providers’ scores, the results of a nationwide survey analysing the views of 22,450 consumers were included in the methodology to help select the winner. 

“Insurance is more than just the policy, what it covers and the cost; it is also the customer service, how the insurer communicates with their customers and the flexibility offered in how someone can manage their policies,” said Canstar’s General Manager, Research and Insights, Mitch Watson.

Insurer of the Year Award winner – Budget Direct

Budget Direct has taken out Canstar’s inaugural Insurer of the Year Award. This follows Budget Direct being awarded national Canstar Outstanding Value Awards for both Car Insurance and Home & Contents Insurance in 2021.

According to Canstar Research, Budget Direct provided competitively priced policies with a comprehensive level of cover.

Budget Direct’s car insurance customers have access to rental vehicle cover following theft and accidents, the option to include roadside assistance, and weather alerts that notifies them of potential hail storms in their area. Home insurance customers can access fire, theft, storm and optional flood cover, as well as cover for accidental breakage of glass such as windows and ceramic cooktops, and the option to add accidental damage.

“Budget Direct also performed well in the area of customer satisfaction, where value for money and comprehensiveness of cover stood out as key drivers of overall satisfaction,” Mr Watson said.

Considerations when choosing an insurance policy

When it comes to choosing an insurance policy, the key is to closely consider key factors like the price, the level of cover and the customer service available. Canstar’s Star Ratings can provide guidance regarding a policy’s value for money for consumers.

“Insurance is definitely a value-based purchase. Simply choosing the cheapest policy may leave a person without a level of cover they need, but choosing the most expensive option doesn’t necessarily mean the greatest amount of cover – in fact, a person could end up overpaying,” Mr Watson said.

“When looking for an insurer, Australians should be seeking the one which provides the cover for the risks they are likely to encounter, at a price that doesn’t break the bank,” he said.

There are a number of ways you may be able to save on your insurance. For example, some providers offer discounts when a policy is purchased online or if you have more than one policy with the same provider.

“For some consumers, one insurer across both car and home may work for them,” said Mr Watson.

“This can also come with a range of benefits, including access to policy discounts and greater ease in managing the policies.

“However, each person needs to consider their risks and whether the same insurer across both can offer a competitive offering, which includes the cover needed at a reasonable price.”

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