The Two Minute Call that could Save You Money

My Fellow Members,

Last week I spoke to you about switching providers and getting a better deal.

This week I wanted to let you know it’s not the only way.

A wise friend of mine who’s been in insurance all his life said to me recently the adage in the industry is that it’s harder to get a new customer than keep an existing one.

And that reminded me of a conversation I had with a colleague at 2GB last week. He gets a better deal for himself this way: When they raise his premium each year, he goes onto his home insurers website, applies as a new customer, and gets a better price than his renewal.

To some this may sound a little laborious, but I’ve done some checking and often one phone call can do the trick. In other words, all you have to do is ask.

I’ve been paying interest on my mortgage to one of the big four banks for twenty five years. Joe Blow can walk in off the street and get a better rate. That didn’t strike me as a reward for my loyalty, so I called my bank manager. No questions asked, immediately a quarter of a per cent came off my rate … But I had to ask for it!

While we are on the subject I’d like to share a few home insurance tips and traps.

Apart from being a new customer, you can often get discounts  for buying your policy online, installing an alarm or just being a senior! Always check what is counted as included and what counts as optional cover.

Think twice before you claim in some cases it doesn’t matter whether you claim for $1000 or $100,000 – your premium could still rise by 10% or more.

Double check whether your policy covers accidental damage, smoke damage,  property being renovated, impact (such as a car hitting a wall), replacement locks if you lose your keys, earthquake damage and flood damage.

Beware, some insurers won’t cover an event if your home is unoccupied for more than 60 days. Many insurers insist on deadlocks on your doors and windows.

Watch out for ‘watery interpretations’ – water damage is a problematic area of fine print for home and contents insurance.

And finally, remember leaky roofs are a common cause of claims denial.

Just a few things there for you to think about!

But my main message this week is … “Have you called and have you asked for a better deal?”

Until next week,

My Warmest Regards,

John