For those in Perth always looking for a better, faster, cheaper way

Wednesday, April 8, 2015

Tips When Renewing Your Home & Contents or Car Insurance

I've just gone through the annual ritual of sorting out my car and home insurance and there were some interesting observations and tricks that I saw the insurance companies playing.

First of all, when you receive the renewal notice, if you want to stay with the same insurance company, you can still save about $20 on your car insurance or $70 on your home insurance by getting a new quote from the same insurance company online. This worked for me with RAC.

With home and contents insurance, I noticed that the amount insured for both the home and contents had increased by 5%. Standard practice but if you think you don't need to index your house to the 5% inflation assumption, you can manually adjust your amount insured down to what you want which will save you on your premium.

Also, it pays to shop around. Take some time to go through at least two other insurance company websites to get different quotes before committing yourself to another year with your existing company. Don't be deceived - their loyalty reward is often much less than what you can get from a rival insurance company - I'm particularly looking at SGIO who quoted my car insurance at $1,017 compared to RAC which was $557.

When entering your details in getting a new quote, watch out for changes to your selected variables. For example, when I changed the date to start my insurance on the RAC website, my excess figures changed as well from $500 to $650.

Of course everyone's experiences will vary but the above should save you a few hundred dollars. To those who can't be bothered shopping around and happy to pay the lazy tax, sorry I wasted your time reading this :)

1 comment:

  1. As usual my RAC renewal was 10% more than last year for 10% decrease in car value.

    Interestingly doing a new quote online with them came up as a whopping 40% more expensive - so I am surprised it actually is best to renew with them off the renewal then starting a new quote this year.

    Maybe their system has caught up realising I only ever do 1 year policies with them in the past :D