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News8 Ways To Save On Your Home and Car Insurance
8 Ways To Save On Your Home and Car Insurance

8 Ways To Save On Your Home and Car Insurance

Tags: Cost of Living
Last updated by Kayley Harris on

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 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.

 

Originally posted on .

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Someone
Someone from QLD commented:

Anonymous from Queensland...I also have a 2nd car & caravan policies with a Seniors Org who are brokers for Allianz..I will be checking this on out. 

Someone
Someone from WA commented:

It is a shame that insurance companies don't look after their customers and that we need to shop around every year. It is also quite unfair that there are excesses on policies , some quite high. I guess this stops people claiming below the value of the excess amount. 

Margaret
Margaret from SA commented:

This is in relation to contents insurance but have had similar experiences with car insurance previously. A couple of years back I changed providers mainly to consolidate some some things. The next year, as usual, goes up considerably so I have to start checking around again, even with my current provider. I found a much cheaper price with my current one online so when I ring them with this info I get told - that is only for new customers. So it was suggested I cancel that and start a new one with them. What a hassle! Why have to go through that every year. Seems one is not rewarded for loyalty. I work full time nights and don't have time for this. 

Someone
Someone from QLD commented:

On a caravanning trip in W.A, a Roo hit us & damaged our Pajero. I notified Allianz & claimed on return. Vehicle repaired not without drama, paid $675 excess & policy went up $250. Shopped around new Insurer $275 cheaper. 

Someone
Someone from VIC commented:

Same thing happened to us 2 years ago same company changed insurance and 250 cheaper Victoria 

Janet
Janet from SA commented:

Hi, I have just been comparing and changing my power energy policy to RAA because they offered me 30% is that a good outcome to 50up? Jaz 

Robyn
Robyn from NSW commented:

Thanks, really good pointers on saving money on Insurance. Also if you prefer one company over another. Get two or three quotes, then go back to your fav one and ask them to match it. They usually do. 

Irene
Irene from QLD commented:

Thank you Karen. As a senior with some disabilities, my enquiries with banks led me off to branches closer to the CBD, and that was out of my limits. I hear what your saying, I'll give it another try. :-) 

Irene
Irene from QLD commented:

Thank you Susan, that makes it much clearer than the direction my mind went on first reading the article. :-) 

Karen
Karen from NSW replied to Irene:

Irene what Susan is talking about is NOT a safety deposit box. She is talking about a home safe that would not remove your valuables from your home thus reducing your insurance premium but it might make them harder to steal than having them in the sock drawer! I just googled 'safety deposit boxes Sydney' and I can tell you banks do still have them e,g, Comm bank, NAB, Westpac, but there are also private companies offering this service e.g. Kennards (yes they of the storage unit), Guardian Vaults, Custodian Vaults etc. 

Rhyl
Rhyl from QLD commented:

I have found the best way to get a serious discount on insuring my ageing car is to negotiate with my insurer. I did this two years ago with the insurer I had been with for three years, because contrary to what Kevin from WA found, insurance premiums do not always fall as the market value of your car falls. I have achieved such a great result that no other insurer can come anywhere near the low premiums I pay. I'm happy to pass on the name of the company, but it's the one who says it achieves savings for its clients by considering the way their clients use and garage/park their cars. 

Irene
Irene from QLD commented:

Item or para 5. Where does one get a safe deposit box these days? Banks have not had them for years. ~Irene. 

Susan
Susan from WA replied to Irene:

Hi Irene, you can buy a small safe from Bunnings, Masters, locksmiths etc. I got mine for around $50 from Bunnings. It came with bolts so it can be secured to a wall or floor in your wardrobe, linen cupboard...wherever you decide to put it. You just need to get hubby or a friend to drill the holes for the bolts to secure it, the safe I bought already has pre-drilled holes. Having a secured safe for your valuables, important paperwork like birth certificates, insurance policies etc and not only gives you peace of mind but may also help reduce your contents insurance. You can get fire resistant safes, ones with a key and/or a pin pad so just ask a sales person for advice on which safe would best suit your needs. Some of them can be quite heavy so just ask a sales person and I'm sure someone would be able to help carry it for you if need be. Hope this helps, Sue 

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