Switch insurance providers and save money
Paying for insurance is a no-brainer when it comes to protecting your assets such as your home and contents, and car. But rather than automatically renewing policies, shop around instead and save.
First, check any annual insurance cover renewal letters carefully. One thing you can guarantee is that there will be a price rise (often referred to as a ‘loyalty tax’!). Insurance companies rely on a customer’s complacency and if you haven’t checked your policy for a while, you may be paying way more than you need to.
Do your research
It’s easy to compare when it comes to insurance these days as it can be done online. You could use a comparison site or choose a few insurance companies and go to their websites for quotes.
Always check your own insurer and at least three other insurers' quotes before renewing your premium. If you shop around rather than automatically renewing, you could save over $1,500 (I did!).
Easy ways to lower your premium
- Some insurance companies give a reduced premium for the first year if you apply online. Just remember to review the cost when the first year is coming to an end as there may be a big jump.
- If you want to pay monthly, find a company who doesn’t charge more to do this (most do). It’s always cheaper to pay for the year upfront if you have the budget.
- If you choose a higher excess, your insurance cost will be less. Remember you will need the budget to pay the higher excess in the event of a claim.
- Add security to your home (such as security screens, deadlocks, or a security alarm system) as this can lower your premium.
- You can also ask your current provider and ask for a better deal – (it’s good to have a cheaper ‘back up’ quote). Most insurance providers have a ‘customer retention department’ (or words to that effect!). If you phone to cancel your insurance because you have found a more cost-effective provider, you’ll find that they can suddenly match the price you have been given by someone else.
Remember: when comparing quotes, make sure that they all include the same benefits as your current insurance provider – they could be cheaper for a reason.