Having insurance has become an important responsibility for Australians. While insurance costs have increased over the past decade, it is expected to go up again when extra levies are added to the government’s fund and reforms are introduced. However, there are some ways to cut costs and save money on your insurance.
Use an online calculator if you have insurance on your house. If you need to renovate your property, check if you have the right level of insurance. You may be paying more than necessary if you have insured more than it would cost.
A large number of insurers offer lower prices to people who have more than one policy with the same insurer. Policyholders can save money by taking advantage of every discount available to them. Check for any no-claims discounts that you qualify for. Also, try to get a discount for having a fire alarm or monitored security system.
Higher excess on your policies can mean lower premiums. This means you’ll cover more of the cost of repairs in a crash or replacing stolen items, but you pay less in premiums. As expected, this is only a good option for people who could afford to cover it when they have to claim.
How you pay
You can have the option to pay your premiums with the cost spread out by direct debit or annually. Paying one annual lump sum is usually cheaper.
Remove unnecessary features in your insurance
Some insurance policies come with extra features that you might not need. For example, many policyholders can do without rental car cover. If you live in a rural area and have a couple of cars available to you, you might not need it. But for someone who can’t live without their car, this could work well.
Features you might pay extra for may include:
- agreed value policies
- breakdown service
- guaranteed no-claims bonuses.
Always look for a better deal. It’s important for policyholders to compare the same levels of cover. Discuss with insurers what your options are, and the best policy that meets your needs.
Consider the price, but remember that cheap isn’t always the best. The reputation of the insurer and their behaviour in a claim should be part of the equation. If there’s a better deal on the same level of cover, ask your existing provider whether they can match it or do better.
If you liked our “Save Money on your Insurance” and find it useful, check our blogs regularly for more information on how to get out of debt and get updates on the best money app in Australia.