As the cost of living continues to rise, many people are thinking twice about the insurances they hold.
Whether it is insurance for your home, car, health, income or life – when the cost of living is high, it’s natural to be more price-sensitive and seek more affordable insurance options that provide adequate cover.
Things to consider which may make your insurance premiums more affordable
While each policy and policyholder are unique, there are changes you may consider making to your insurances when the cost of living is high.
- Talk to your insurance provider: They may be able to offer discounts or lower premiums if you ask. It is a good idea to review your policy with your insurer to see if you're getting the best deal and the cover level is appropriate
- Shop around: Consider shopping around and comparing insurance prices from multiple providers. It is a good habit to review your policy annually and check prices from multiple insurers to ensure you are getting the most suitable deal for you
- Bundle policies: You may save money by bundling your policies, such as combining your home and car insurance with one provider. Many insurers offer discounts to customers who bundle their policies
- Review your cover amount: Review your cover amount regularly to help ensure you have adequate protection but are not paying for more cover than you need
- Extras health insurance cover: If you have extras health insurance cover, consider if it is giving you value for your money
- Think about using an insurance broker: An insurance broker may be helpful as you navigate the insurance market to find the right cover for your needs and budget. They may also be aware of current discounts and other cost-saving opportunities
- Explore comparison websites: These websites offer a convenient way to compare costs and coverage across multiple providers. While these sites may be a starting point, it's still important to review individual policy cover definitions and product disclosure statements before making a purchase decision. Here are a few websites that offer comparison across multiple insurances like health, car, home and contents, pet, travel and life insurance.
Also the Australian Government’s Department of Health and Aged Care offers a service to compare health insurance policies, including extra health insurance cover.
In general, it’s a good idea to regularly review your insurance policies, shop around, and adjust when you need to, so you have adequate cover for your needs.
Other options and help available
- Check your eligibility for government support: Low-income families may be eligible for government support to help pay for insurance. For example, the Australian government provides a private health insurance rebate to help offset the cost of private health insurance for those who are eligible. Visit the ATO’s Private Health Insurance Rebate site for information about eligibility
- Prioritise insurance needs: While it is important to have insurance cover, you may need to prioritise which types of insurance you can afford now. For example, in Australia you are required to have Compulsory Third Party insurance (CTP) for your car but not comprehensive cover. However, if a lender has a charge over the car as security for finance, then the lender may require you to have comprehensive cover. This may also apply if you have a mortgage over your home – the lender may require you to have insurance cover. Private health insurance cover is also optional. Take the time to review your own personal situation to consider which insurances are important or necessary for you
- Save for emergencies/self-insure: Consider whether you might save your own money for emergencies. Having sufficient savings in an emergency fund helps cover unexpected expenses that may arise, such as car repairs, medical bills or home repairs, instead of paying for insurance
- Seek financial counselling: The National Debt Helpline provides free financial counselling which can comprehensively review your financial situation and make recommendations about ways to improve your financial situation. For help:
There are a number of actions you can take or resources available to help you minimise your insurance costs. It's recommended that you review your policies regularly and speak with a finance professional to help make sure you have the most appropriate, cost-effective insurance for your needs.
Things you should know
This information is general in nature and has been prepared without taking your objectives, needs and overall financial situation into account. For this reason, you should consider the appropriateness for the information to your own circumstances and, if necessary, seek appropriate professional advice.
© Westpac Banking Corporation ABN 33 007 457 141 AFSL and Australian Credit Licence 233714.