It no longer pays to stay loyal to any insurance company…
In fact, if you change every year, you could get better bang for your buck!
I hate insurance. I hate having to pay huge amounts every year. But it is a necessary evil. Every time I get a bill in the mail I feel like screaming at them! Things like:
Why is my insurance going up when I haven’t made a claim?
Shouldn’t I get a BETTER rate for being a loyal customer?
Why are you offering deals and incentive for new buyers of insurance and not your loyal customers?
It really shits me to tears.
On top of all that – insurance of any sort is so complicated! When I get all the terms and conditions in the mail – I feel like I’m expected to know what it all means…. Who’s got time for that? I feel like I need a law degree to be able to understand all the information out there. At the end of the day – I want enough insurance to cover my butt if something goes wrong – at the lowest price possible.
So I’ve done some research on how to save money on insurance, and how to get those incentives every year!
Compare Policies Online First
Before you agree to the renewal fee of any insurance, have a quick look online to see what the others are offering. You can perform a quick search and receive a quote from several different companies within a matter of minutes. Review the policies and use this information to ask for a better deal with your current provider. Or, if your current provider refuses to match it, then you may consider switching to one of the cheaper companies.
One thing to remember, however, is that not all insurance companies have the same customer service and satisfaction rate. If you are going with a smaller no-name company that comes with the best rate, you need to be aware that this could be problematic if you need to make a claim down the road.
Most of the time if you purchase your policy online, you can save money on insurance by up to 10%.
MONEY SAVING HINT:
If your current insurer has a better deal for new customers and they won’t honour it for you when you ask them – CANCEL your insurance, then take out a NEW policy taking up the new deal right away. They may try and talk you out of it – but they can’t say no!
What sort of insurance do I need?
Well, there are so many different types of insurance available. Generally, if you can afford it – have as much as you can afford. If you can’t, only purchase policies that can’t afford not to have. Important insurances include:
- House Insurance (only if you own your property)
- Content Insurance (for your ‘things’ – you can get this insurance if you rent)
- Car Insurance – either fully comprehensive insurance if your car is fairly new, or Third Party Insurance to just cover you if you damage another car
Other types of insurance available include:
- Health Insurance (to pay for your own Doctor and hospital fee’s)
- Life Insurance (to provide your family $$ if you die)
- Income Insurance (to provide $$ if you are sick or unable to work)
- Travel Insurance (only if you are going somewhere)
- Pet Insurance (if you have animals that require vet care)
I could go on and on and on… but I won’t.
Some insurances are covered under your Superannuation fund – so it is worth checking your policy to see what you might already be paying for.
MONEY SAVING HINT:
Paying annually rather than monthly or fortnightly (if you can afford it) always works out cheaper!
How do I know they are reputable?
That’s the key question. No point in getting a cheap insurance policy only to not be able to claim it or have trouble getting your money out of them. I suggest looking at websites such as Canstar who assess all the possible insurance policies around and compare them to see which one is the best. They are also independent (ie not sponsored by or paid for by insurance companies) which is important to consider. Choice is another great resource to try, they have a few free resources but for the more in-depth articles, they charge a fee to view them.
A good way to see how your insurance company treats their customers is to visit their Facebook Page….. Get ready to do a few hours of reading!
Australian Car insurance providers to try:
Now we aren’t sponsored by any of these and have no alliances or allegiances with any of them, but these are the ones we’ve mostly heard of and they have the best online reviews:
- Budget Direct Car Insurance
- AAMI Car Insurance
- Woolworths Car Insurance
- Suncorp Car Insurance
- Allianz Car Insurance
Now the cost of your car insurance will depend on a lot of different things.
- Your age (over 25’s get insurance cheaper)
- Your driving history
- Your past claim history
- What State you are located in (Australian car insurance is regulated at State level)
- The location you live in (Cities are typically more expensive than rural areas)
- The safety of where your car is parked at night (locked up in a garage or on the street)
House and Content Insurance Providers:
- Suncorp Insurance
- Budget Direct
Australian Travel Insurance Providers:
- NIB Travel Insurance
- Fast Cover Travel Insurance
- Trip Cover
- Cover-More Travel Insurance
- Tick Travel Insurance
- Southern Cross Travel Insurance Australia
Life Insurance Providers:
- Asteron Life and Superannuation Limited
- Allianz Australia
- Colonial Life Insurance
Don’t be scared to ask for a discount!
When you are on the phone with your insurance company or even a potential insurance company, ask them about the different discounts and incentives they have on offer. You should be eligible for a no claims bonus if you have gone a certain amount of time without a claim or accident. You could also be eligible for a loyalty discount. There are several other discounts to consider such as a low mileage discount if you do not drive often. You may not even know that these discounts exist unless you ask.
If they don’t bite and offer you a discount when you ask – ask them the following questions:
“Why is my renewal notice so high?”
“I’ve been quoted a cheaper price, will you match or better this offer?”
Bundle Your Policies To Save Money On Insurance
If you have more than one car or if you have several other ‘toys’ that need to be insured, such as boats and caravans, then ask about bundling these insurance options together. Some insurance companies will also allow you to bundle your car insurance with your house and contents coverage for more savings. Sometimes this saving is up to 15% off all of your policies with the single insurer!
Check the Excess Payments
The excess will only need to be paid if you need to make a claim. Typically you are looking at around $100 to $300 for the excess. You can choose to opt for a higher excess as a way to lower your premium. For example, you may save $100 per year if you go for a $500 excess instead of a $200 one.
However, you will need to pay this amount if you ever need to make a claim and thus for some people, it may not be worth the risk, especially if you are prone to accidents or spend a lot of time driving.
If you take the time to do your research online, check the terms and conditions and check Canstar for updated information – you will get the best deal on any of your insurances.