By Richard Laycock | Insurance Expert at Finder.com.au
Do you want to pay less for your insurance? Of course you do, admit it. Who wouldn’t want to save a bit of cash wherever they can? Now that we’re all being honest, let’s look at some of the ways that you can cut down on how much you’re spending on insurance to get you one step closer to whatever you’ve been eyeing off most recently.
Agreed value vs market value
If you’ve got a comprehensive car insurance policy or you’re in the market for one, you’re going to have to make a decision about agreed or market value.
There are advantages to both types of cover, but agreed value or new-for-old policies are almost always more expensive than market value cover. If you’re looking to trim the fat off your policy and you drive an older or inexpensive vehicle, a market value policy might be worth considering.
Comprehensive vs third party
Similarly, if you’ve got an older car and you’re not concerned about replacing your vehicle if it’s damaged, dropping your level of cover is an option. If this sounds like you, taking out a third party or third party fire and theft policy could save you a decent chunk of change.
There are now a bunch of car insurance brands that offer pay-as-you-drive policies. If you don’t drive your car often and you park it in a safe location, you might want to look into this type of cover and see how much you can save.
Compare your options
With all of the above in mind, you need to make sure you compare your options. Don’t just get the first policy that you find. Get a range of quotes from a range of different insurers and be sure to compare policies on more than just price alone, to make sure you’re getting value for your hard-earned money.
Life insurance and super
Do you have more than one super fund? If so, you may be burning through your contributions super fast. Having more than one super fund not only means that your super is being drained by lots of additional administration fees, but you will also be paying a bunch for the insurance policies included in those super funds. Look into consolidating your accounts to make sure you’re making the most of your super fund.
While you’re at it, if you have life, income protection or total permanent disability (TPD) insurance outside of your super, you might want to consider opting out of the insurance options included with your super account so that you’re not doubling up.
Do you and your partner have the same health insurance needs? Why not consolidate your policies and get a couples policy? While there’s no specific financial benefit to bundling your policies, it will mean one less policy to worry about.
Get the most from your cover
Have a look at how much you’re actually using your private health insurance. If you notice that you’re not really claiming for as much as you could be, especially in terms of ancillary services, it might be worthwhile dropping to a lower level of cover or dropping your extras completely.
If you’re looking to switch health funds, try to get a little more bang for your buck. Look for funds that offer incentives or sign-up bonuses such as frequent flyer points or gift cards. While you should never make a choice about a health fund based solely on incentives and freebies, these can be good tie breakers when it comes time to weigh up your options.
Bundle your cover
If you’ve got a car insurance policy with one insurer and a home insurance policy with another, look for an insurance brand that offers bundling discounts and see if you can save money by switching.
For example, BOQ offers the following bundling discount:
- Purchase any second or subsequent eligible insurance policy through BOQ and you could receive a 20% discount on that policy.
- Receive a 5% discount if you combine your home and contents insurance in a single policy.
Many car insurance brands will also offer discounts on cover depending on your age. For example, BOQ also offers a 20% discount if you are over 55 and no longer working full time.
So what are you waiting for? Get out there and start comparing your options to find out how much you could save on insurance.
Richard Laycock is an insurance expert at finder.com.au.