Insurance is a grudge purchase most people would rather not think about, let alone pay for.
It’s no surprise then that so many Aussies only glance at their insurance when the renewal rolls around - then quickly pay the bill and forget about it until next year.
But that lax attitude could be costing you thousands of dollars – and fixing it is probably easier than you realise. Here’s how to do it:
Home insurance | Potential saving: $1,244
When Finder requested quotes from 11 different insurers, all for the same home and a similar level of cover, it found a price difference of $1,244 between the cheapest and most expensive policy.
That’s before we even get to sign-up offers. It’s common practice for home insurers to offer sign-up deals to new customers. In some cases, they’ll reduce your first annual premium by as much as 30 per cent – but that’s a steep increase come year two.
At a minimum, you should be comparing your home insurance every year. It’s the best way to see if you could be getting a better price elsewhere and to take advantage of sign-up deals.
Car insurance | Potential saving: $2,353
Using 8 unique driver profiles, Finder requested a total of 336 quotes from 42 different car insurers. The average cost of cover ranged from $626 to $2,979 a year. That’s a huge potential saving of $2,353 – just by switching your insurer.
That’s not the only way to save money on your car insurance. Increasing your excess, taking off extras like windshield cover and limiting the insured drivers can all cut the cost of your cover even more.
Health insurance | Potential saving: $635
Finder’s 2020 Loyalty Tax Report identified a difference of $635 a year between the cheapest and most expensive health insurance policies on the same tier. That means extra money in your pocket, without compromising on cover.
Of course, there might not be anything wrong with compromising on cover. It’s worth checking your policy to see if it’s really meeting your needs. You may be paying for benefits you don’t want or are never going to use.
For example, a gold tier policy offers cover for pregnancy and weight loss surgery, but if they’re not benefits you think you’ll ever need, it might be worth dropping down to the silver tier. You can expect to pay between $150 and $190 a month for a gold tier policy, but that drops to around $100 to $160 for a silver tier policy.
Life insurance | Potential saving: $828
The cost of life insurance varies massively depending on the type of cover you want and your own personal details. However, some pricing is purely down to which insurer you go with.
Finder requested quotes from 19 different life insurers, using the same profile for each. Quotes varied from $16 a month, all the way up to $85 a month – all for a $500,000 payout. That's a potential saving of $828 a year, just by switching providers.
Across home, car, health and life insurance, that’s a potential saving of $5,060 a year – without taking into consideration sign-up deals or the benefits of reducing your cover.
Of course, not everyone will be able to carve this much off their insurance bills. But it’s very likely you’ll be able to save a decent bit, especially if you haven’t compared for a while.
Our advice is to get online and give it a go. It’ll take less than an hour to check all of your insurance providers and you could end up pocketing a few thousand dollars for your effort.
Nicola Middlemiss is a senior insurance writer at Finder.
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