Futurisk's Hot Tips for Saving Money on your Insurances
If we were buying a new appliance or vehicle, we'd shop around. If we wanted some new computer gear or were renovating our kitchen, we'd look for the best deal. So why don't we do that with insurance?
It seems many New Zealanders think of insurance as coming in a fixed package at a fixed price, but there are some practical things you can do to save money on your insurances. Here are six hot tips.
1. Work out what you need.
Insurance premiums are calculated on the value of what you insure, so the higher the value, the higher the insurance premiums.
To insure something for more than what it's worth means you are throwing away money every month. Whether it's for your life, car, home, contents or something else, work out what you want insured and how much it is worth.
Don't be one of those people who waste money by over-insuring and so paying premiums that are higher than they need be. Also be careful not to risk a financial crisis by under-insuring and receiving money that doesn't cover the loss of an item.
2. Get quotes.
If you are arranging your own insurance, get quotes from a few different companies. Especially for vehicle and house and contents insurance - the cost can vary greatly from company to company.
One good way to know if you are getting a good deal is to work through a broker. They have usually sourced the best deals and may even be able to offer discounts because of the number of deals they put through.
Remember though, the cheapest price may not equate to the best deal. That's where tip number three comes in. Read on....
3. Make sure you know what you're buying.
4. Increase your excess.
For most insurances (not life insurance), you will almost always have to pay an excess when you make a claim. By agreeing to pay a little more if and when you make a claim you can often get a discount on your insurance premiums.
The one thing to be careful of is that whatever the excess is, you are able to meet that amount should you have to make a claim.
5. Work out the best way to make your payments.
Insurance companies will often give a discount if you pay your insurance premiums in a yearly lump sum. That suits some people while others may prefer weekly or monthly payments. You need to do what is best for you. One thing is for sure though; there are savings to be made if you can pay annually.
By the way, if you pay yearly it is good to spread the renewal dates for insurances throughout the year. If they all come due in one month it can be quite a stretch financially.
6. Review your insurances regularly.
I can say with a degree of certainty that most people, if they haven't reviewed their insurances in the last three years or so, can save money by getting new quotes and reinsuring. It's worth taking an hour or so occasionally to contact a few insurance companies and ask for quotes on your insurance needs, in particular, vehicle, house, and contents insurance.
7. Go with one company.
Many insurance companies will give generous discounts if you place all your vehicle, house, and contents insurances with them. When you buy an insurance policy, make sure you ask the question, "What discount will you give me if I put all my policies with your company?"
8. Use an expert!
There is nothing like an expert to define what you require and discover where the best price can be found. Find a broker you can trust and get him/her to regularly review your insurances.
If you want to know more about saving money on your insurances, or you want help with your insurances -
contact the team at Futurisk.
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ANZ
AIA
NIB
Partnerslife
Southern Cross
Perpetual Guardian
Westpac
Vero
FANZ
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