INSURANCE IS BORING AND EXPENSIVE AND I HATE IT SO MUCH!
It never pays to stay loyal to an 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 each year. It is boring.
But it is a necessary evil. Every freaking time I get an insurance renewal in the mail, I feel like screaming at them!
- 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?
- Why are their customer service representatives so rude!
It really shits me to tears. I hate them so much!!!!!!
You Need a Degree to Read Their Terms and Conditions
On top of all that – insurance is so complicated! When I get all the terms and conditions in the mail or they play that pre-recorded spiel over the phone – I feel like I’m expected to know what it all means…. I feel like they have just written it to screw me over.
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!
Table of Contents:
1. Compare Different 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%.
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!
2. Only Buy the Insurances You 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 fees)
- 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.
Paying annually rather than monthly or fortnightly (if you can afford it) always works out cheaper!
3. How do I know the cheaper insurance companies 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 people going mental!
4. How to Save Money on Car Insurance
The best way to save money on Car Insurance is:
- Shop around online for the best deal (most are cheaper online)
- Bundle your insurances if you also have home and contents insurance
- Stick to the basics
- Pay your premiums annually instead of monthly
- Choose a higher excess to reduce your payments
- Insure your car for the market value
Once you have the final price online, it’s a good idea to call the insurance company direct just to make sure that the price you have been quoted is the very best available.
Insurance Company Agregators
These are companies that compare policies and outline the pro’s and con’s of each – hopefully giving you the best price possible. The only downfall with insurance aggregators is that they don’t show you all of the policies available, just the ones that they work with. They could be a great way of getting an idea of who to go with though.
Under 25? Go On Your Parents Car Insurance Policy
If you have just got your license and are still driving Mum or Dad’s vehicle, it pays to get your name added to the current existing car insurance policy as an additional driver. Now this will cost Mum and Dad a bit more (hopefully they will pay it for you!).
Younger people pay higher car insurance premiums because they are more likely to be involved in an accident. If your vehicle isn’t worth a whole lot, you can get away with only buying Compulsory Third Party Insurance (which all drivers on Australian roads are required to have) and Third Party Fire & Theft Insurance which covers the cost of damage to other vehicles or if your car is stolen.
Make a Note of Your Car Extras
Do you have one or more baby car seats? A bull bar? Fancy stereo system. These are not ‘stock standard’ so if your car gets stolen, these types of items won’t be insured unless they are specified. Most (not all) insurance companies will cover these items at no extra cost, provided they are listed – so don’t forget to do that!
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
- NRMA Insurance
- CGU Insurance
- Youi Insurance
- GIO Insurance
- RAC 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)
5. How to Save Money on House and Contents Insurance
If you own your own house, house insurance is essential in case it burns down or a storm does damage. Contents insurance is to cover what’s in your home – your possessions. Renters can also take out contents insurance on their ‘stuff’.
Contents insurance covers items like your furniture, electrical appliances, tools, jewellery etc. If you have something ‘special’ for example an expensive art collection, you will need to specify this in your policy to ensure it is covered.
If you have no idea on what to insure your contents for – there are many free insurance calculators online that will help you come to a reasonable figure.
To save money on both house and contents insurance – do the following:
Keep your home secure!
Key locked windows and a security system will lower your premiums. Have deadlocks on the outside doors.
Combine Your Policies
If you have house AND contents insurance and your car insurance with one insurer, you can often get a multi-policy discount of up to 15% – that’s a lot of savings!
Choose a Higher Excess
A higher excess means lower premiums.
Watch Out for Exclusions!
Many contents insurance policies have exclusions – that is – items that they won’t insure. This can often be items such as:
- Damage caused by floods
- Intentional damage
- Criminal damage
- If you leave your doors unlocked or windows open
- Portable items (handbag, camera, bikes, mobile phones, laptops)
House and Content Insurance Providers:
- Suncorp Insurance
- Budget Direct
6. How to Save Money on Health Insurance
Health Insurance is personally my biggest expense – but I wouldn’t be without it. It just covers you and your family in case you need non-urgent surgery. If you are planning on having a baby and want to go private – you will need to look at having health insurance at least a year from giving birth.
If you currently have Health Insurance – here are some nifty ways to save:
- All finished having your kids? Take pregnancy off your policy (you will get a discount)
- If you don’t need extra’s – just get Hospital Cover
- Pay an additional excess to get a regular discount on your monthly insurance.
7. How to Save Money on Travel Insurance
Well because of Covid, many of us aren’t travelling at the moment which is a bummer. But if you are lucky enough to go travelling, check with your current Health Insurance Provider, many offer complimentary travel insurance cover if you are under the age of 70. And if you don’t have to pay another cent to get covered – bonza!
Most airlines also offer travel insurance policies for a single trip – these are usually quite expensive for what you get so avoid them if you can.
One advantage of using a Travel Agent is that they can offer a competitive travel insurance policy for your direct needs.
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
8. How to Save Money on Life Insurance?
Check your Superannuation Policy – many include a Life Insurance Policy! Life Insurance is slowly phasing out and going to more of an ‘Accident Insurance’ so if you get sick or injured, they will help you through that phase of your life.
It is horrendously expensive though!
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 a 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.