8 Ways to Save on your Car, Home & Contents Insurance

If you’re a FiftyUp Club member, you probably don’t claim much on your car, home and contents insurance.

It’s a statistical fact that over-50s are better risks for insurance companies. In fact, it’s one of the reasons we launched the FiftyUp Club.

And that’s all the more reason to make sure you’re not paying too much. If you’re not claiming much, why should you be forking out the big bucks for cover?

Here are our Top 8 Tips to ensure you’re not paying top dollar for insurance:

1. Shop around, or you’re a sitting duck

We’ve seen customers save hundreds and even as much as $1000 in rare cases on their car or their home & contents insurance by shopping around.

For example, one of our members had bought his comprehensive car insurance from the luxury car dealer where he bought his car, and he had no idea he was paying almost double what he should have been.

Most people can save hundreds if they look around a bit and make sure they’re not paying too much, and not paying for cover they don’t need.

2. Mystery-shop your own provider

Mystery-shoppers are actors who pretend to be a customer to assess the level of customer service offered by a business.

But you can mystery-shop your own providers now, thanks to online quoting tools.

A common trick of insurers is to charge existing customers more than new customers. So much for loyalty, eh?

Whenever you get your renewal price, go online to your insurer’s website as an anonymous shopper, and get a quote for the same cover as you already have.

If they quote you a cheaper price, call them up and give them a piece of your mind – or take your business elsewhere.

3. Pay annually, if you can

Paying by the month is a relatively new phenomenon in insurance and it’s becoming more and more popular, but some insurers will charge you as much as 30% extra over the course of a year for the privilege.

It may be difficult to pay a year all at once, but if you can do so, you could save big time.

Get monthly and annual quotes, check how much the difference is, and work out if it’s worthwhile.

4. You’re not locked in!

Contrary to popular belief, you can switch car or home insurance anytime.

There may be a fee but it’s usually small, and you’re generally entitled to a refund of unused premium.

So don’t pass up a good deal just because your renewal isn’t due yet.

5. Jewellery and other valuables

For Contents Insurance, you usually have to nominate items valued at over $1000 or a similar amount.

If you have a lot of family heirlooms, they could be pushing up your premium substantially.

Why not look into the cost of a safe deposit box for valuables you almost never wear, to increase their security and cut the cost of your contents cover?

6. Drivers Under 25

Insuring younger drivers can push up the cost of insurance substantially. If you are adding an under-25 driver to a policy, there are a few ways to minimise the cost.

You should choose a small car with a small engine, if possible, as Young Driver + Big Engine = Big Premium.

You should also choose a locally-made car where possible. Young driver + European Parts = Big Premium.

And if possible, add them to a policy on a new or newish car. Insurance premiums, as a percentage of the value of the car, are significantly lower for new cars — this is based on the unsubstantiated assumption that young insurers in new cars are a better risk.

7. Be smart about price comparison websites

Websites that compare prices can be very helpful, but be aware that most of them do not carry the majority of insurance brands.

In fact, some mostly carry brands owned by the same insurer. So it’s worth looking at a few, such as comparethemarket.com.au, iselect.com.au, and choosi.com.au

There’s more detail on the different comparison sites at choice.com.au

8. Join a group-buying club or consumer network

Membership of the FiftyUp Club or a similar organisation can unlock group-discounted offers on car and home and contents insurance that you can use as a jumping-off point for your research.

You know the offers are competitive, so you can compare them to what you have and what else is out there.

Click Here to share your own tips with other members in the FiftyUp Club forum