SAVERS GUIDE: 8 Ways to find better value on Home & Car Insurance
SAVER'S GUIDE
It can be difficult to know where to start when you want to save on Home & Car Insurance, so here are our 8 Top Tips:
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.
It's a mistake just to pay your renewal every year without question.
2. Mystery-shop your own provider
A common practice 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 ask them to match it – or take your business elsewhere.
3. Increasing your excess
Excess is the fixed amount you pay towards each claim you make on your insurance policy. It’s designed to reduce small claims and keep your premiums down. The higher the excess levy the more financially viable it is for policyholders. For example, if your excess was $700 and your damage bill was $10,000, you would pay $700 and your insurers pay $9,300. If the damage was $700 or less, you would pay the entire bill.
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 drivers 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, the biggest insurance companies in Australia, who have more than half of the market between them, will not share their pricing with comparison sites.
8. Join a group-buying club or consumer network
Membership of One Big Switch 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.
Join now to get access to the current special offers for members
FiftyUp Club Pty Ltd (ACN 166 905 175) is a Corporate Authorised Representative (AR number 465649) of One Big Switch Pty Ltd (ACN 150 963 474) who holds its own Australian Financial Services License (AFSL 455982) and can provide you with factual information and general advice only, that is advice that does not take into account your personal objectives, financial situation or needs. If in doubt about your personal situation or needs, you should seek financial advice