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Review Your Insurance Premium

Year after year, you are probably paying the same huge insurance premium, but it's time to see if what you're paying is the best deal out there!

Posted on: July 15, 2017

Year after year, you are probably paying the same huge insurance premium, but it's time to see if what you're paying is the best deal out there!

It’s almost the end of financial year, so what a better time to get your finances in order to tackle the next year? It’s time to bunker down and start researching on ways to save your money and cut down on wasteful expenses. There is a tonne of choice when it comes to insuring your vehicle, and it can be hard to know whether you’re paying too much. Hundreds of thousands of people are paying more on their insurance every day, so it may be time to break away from the pack and take initiative by comparing insurance premiums before you’re caught paying too much for another year of cover.

Review your cover

The most common reason for people paying too much for their insurance is that they don’t know what they are actually covered for. This kind of sounds like a TV advertisement, but it really is important to know what you’re paying for. Not only do you need to know in the event of an accident and claiming, but it’s also important so you are paying for exactly what you need. If you work from home and only drive your car to the grocery store a couple of times a week, then you probably aren’t travelling the same number of kilometres as the average Joe who drives to work every day. By physically reading through your insurance cover documents and deciding if what your cover includes is right for you, you could be saving hundreds.

Shop around

You’ll never know if what you are paying is too much or not enough if you don’t shop around and compare with other insurers. Businesses like Canstar or Compare The Market were built to help people get more bang for their buck. It’s also a handy hint to get a number of quotes and notify your insurer what you are paying and what you are being offered. In many instances, they’ll match your quote or beat it. Not only is it keeping customers happy and loyal, but it’s also saving you time from having to switch to another company and cancelling your current cover.

Excess

When comparing quotes, make note of the excess that you would need to pay should you get into an accident. The higher the excess is, the less premium you’d pay. But you need to weigh up the risks and ask yourself what are the odds of not needing to make a claim ever? You could be up for a $900 bill to top off having a crumpled car after a crash – definitely not what you would call a good time.

You will often find that when getting a car insurance quote, the insurer will set the excess for you, but you are able to change this! If you are doing your quote over the phone or in person, ask your consultant what the ideal excess would be for your situation. Also, you may be up for additional excesses, such as younger driver or inexperienced driver excesses. These are hefty and usually effect your premium quote by quite an amount.

Get a quote from your current insurer

Recently, I did an online quote with my current insurer and was shocked to find out that I could be paying $500 less than what I had been. Premiums can go down every year and your change of circumstances definitely alter the amount you pay. It’s also a good point to consider that many companies offer multi-policy or family discounts, so if you group your home and contents or health insurance in with your car at the same company you’re bound to save… a lot.

Are you a loyal customer?

Loyalty is also a big factor in your quote. Many companies are after returning customers and to make it cost less, offer discounts should they renew with them. It’s handy to know and mention should you be shopping around and discussing your options with your current insurer. You could also benefit from rewards programs offered by different companies, which partner with many places you probably already shop at. You’ll never know unless you ask!

If you are looking at buying a new car and shopping around for vehicle finance, your financier will often add insurance to your borrowing amount should you opt for it. It’s important to ask them what insurances are recommended and whether they would be able to find a good deal for you and your circumstances – after all, that is what they are there for! Good luck shopping around, and we hope you can find some savings before you are due to pay your next instalment.

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