Customers are being urged to compare car insurance policies because the prices vary greatly.

A new analysis by One Big Switch shows that for a customer signing up to comprehensive cover on a five-year-old Toyota Corolla, insurance costs can range anywhere from $594 to $1064 — a difference of 79 per cent.

The price differences for insuring a brand new Mazda CX5 can range from $790 to $919 — a difference of 16 per cent.

And on a two-year-old Holden VF ute, insurance charges range from $670 to $1005 — a difference of 50 per cent.

Car insurance policies can be hundreds of dollars different in price depending on the insurer.Source:Supplied

Consumers are being urged to not fall into the trap of being apathetic, and instead are being encouraged to proactively try and source better deals rather than simply renewing a policy.

One Big Switch spokesman Joel Gibson says the business model of insurance companies is to hike up premium charges for lazy customers.

One Big Switch spokesman Joel Gibson said car insurance customers are often paying more than needed.Source:News Corp Australia

“People who don’t bother to check whether they are paying too much end up bankrolling the bargain hunters who shop around and can sometimes save hundreds of dollars by switching,’’ he says.

“We recommend you get a new quote online from your own provider and see whether they are giving you the same price as if you were a returning customer, that’s a good reality check.

“Then we recommend you always get a second opinion, just as you would with a doctor, because the prices can vary so much.”

The new Big Insurance Switch campaign, which will run for three weeks, is looking to sign up more than 30,000 consumers who want to secure better car, home and life insurance premiums.

Car owners should also look at various insurers to see who can give them the best deal.Source:News Limited

Rising Tide Financial Services managing director Chris Browne says Australians are costing themselves big by remaining “innately apathetic” and not hunting for competitive policies.

“If you don’t have the discipline to do it yourself get someone to do it for you,’’ he says.

“Don’t pay your renewal, before you do this get onto a online comparison website, punch in your details and see what the competitors are prepared to charge you for the same service.”

JOIN TODAY

The Big Insurance Switch campaign aims to unlock group discounts on home, car and life insurance for households.

To sign up go to www.onebigswitch.com.au.

There is no obligation to take up any offer.

News Corp Australia and One Big Switch will earn a commission from any accepted deals.

News Corp is a shareholder of One Big Switch.