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How to save on your insurance

9 June 2016

If you’re choosing insurance purely based on price, then it may pay to think again. While cost is often a motivating factor when considering home, contents and car insurance, cheapest isn’t always best for your circumstances. But don’t despair! There are a number of ways you can reduce your insurance without compromising the type of cover you have.

  1. Choose a higher voluntary excess 

    The first option is for you to choose a higher voluntary excess. An excess is the amount you must pay towards a claim for each event that occurs and is covered by your policy. There are different excess options available; depending on what you think is manageable for your budget. Generally the larger the excess, the smaller the premium.

    Before deciding on a larger excess though, you should work out if you can afford to pay for any smaller accidents that may not be worth as much as your excess, such as a broken window in your home, or a scratch on your car.

  2. Choose the right car insurance policy for your circumstances.

    Choose the right car insurance policy for your circumstances. If price is an issue or your car isn’t worth much, then third party insurance which, at around $4 a week is less than a cup of coffee, can be a great option. It will cover you for the damage you might do to other people’s property, although won’t cover the damage you cause to your car.

    Third Party, Fire and Theft is an extension of the Third Party policy, so for a little extra cost your car will be covered if it’s damaged by fire or stolen.

    In these instances, the value of your car may be a good guide as to what sort of cover to go for.

  3. Review and exclude the policy benefits you don’t need

    Review the list of benefits that come with your policy and exclude benefits you don’t think you’ll need, or you’re happy to cover out of your own pocket. For example, if you’re an AA Insurance customer you may decide to exclude optional benefits like the excess-free glass options for both home and comprehensive car policies, or excess-free hearing aid cover for your contents policy, in exchange for a lower premium.

  4. Secure your property from theft

    Another way to save is to make your property more secure from theft. For your home and contents, a security alarm, and locks on doors and windows, will help you save on your premium.

    Did you know the type of car you drive and the place you reside can be factors that affect how your premium is calculated?

    Our claims data tells us how often each vehicle type is involved in a claim, and how much that claim costs. Our claims data also tells us that some regions and suburbs are more susceptible to burglaries than others. So if you’re in the market for a new car or home, then a quick online insurance calculation before you sign on the dotted line could help save you hundreds, if not thousands, of dollars in premiums.

  5. Check you’re receiving the discounts you’re entitled to

    Check that you are receiving any package discounts that your insurer offers. If you have your house, contents and car with three different insurers, chances are you aren’t making the most of your insurance dollar. However, the more insurance policies you have with one insurer, the more discounts you may be able to accumulate, such as AA Insurance’s multi-policy discount for customers with two or more polices, as well as discounts for AA members.

    Having one insurer also makes it easier should you need to make several claims for the one accident. For example, let’s say you’ve accidentally backed your car into your garage door and caused extensive damage to both. If you have two different insurers, you’ll need to pay an excess for each claim. However, if you have both policies with AA Insurance you’ll only need to pay one excess for both claims.

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