Let’s face it, life is busy. You have bills to pay, responsibilities to look after and a growing to-do list that if we’re honest, is probably never going to get done. Are we right?
One thing on that list is possibly reviewing your insurance providers to see if you can score a better deal. With health insurance set to rise again on 1 April by up to four per cent, it’s a hot topic and a good excuse to finally switch and save. However, is it something you will actually do OR are you going to be one of the expected 10 million adult Australians in 2018 guilty of paying lazy tax?
A recent survey by finder.com.au says that 45 per cent of Australians will probably make the effort to switch providers this year but the remaining 55 per cent could pay dearly for brand loyalty or as it is sometimes referred to, lazy tax.
So what is the best way to approach getting a good deal on your insurance and what tips can help get you started? We’ve put pen to paper to list a few of our favourites.
1. Compare and save
We have all seen the catchy television ads for the compare and save websites. There’s the talking meerkat wearing a velvet robe, Captain Risky and that balding guy from iSelect whose name is apparently Jason Geary. Yes, there are a growing number of comparison websites and often they can be an easy avenue to get a quick snapshot of prices.
When using them, it is important to keep in mind that often, they only compare a selection of products and this is indicative of which providers have signed up and/or paid to be included. It does not always give you a full scope of the market.
Also, when you use these websites it sometimes asks you to input your contact information and often, a representative from their team will call you. Read their privacy information before submitting an online form.
2. Talk to your existing providers
Just like the famous saying goes, if you don’t ask, you don’t get. Sometimes it can pay off talking to your existing providers and telling them candidly that you’re thinking about jumping ship. Be informed and tell them what better prices their competitors are offering and ask them if they can beat it or offer you a better deal to stay.
3. Ask about multi-policy discounts
Most people commonly have a number of insurance policies and typically these are held with a variety of providers. Some companies will offer a discount for have multiple policies, so ask your providers before switching to see if you can save on a package deal.
4. Beware of the fine print
Before switching your insurance policies, take the time to consider upcoming claims that you might need to make. Often waiting periods apply and this can affect what you can claim and when.
5. Pay upfront and save
For most Australians, paying insurance on a monthly basis is a convenient way to go. However, more often than not, it is cheaper to pay in an annual lump sum. With the upcoming increase to health insurance, you could explore the option of paying the next 12 months upfront at the current price and save yourself an average of $200 before the premium hike.
For more information about insurance, including your options and things to consider when reviewing your policies, contact our Financial Planning team on (07) 4632 1966.
GENERAL ADVICE WARNING | This communication has been prepared on a general advice basis only. The information has not been prepared to take into account your specific objectives, needs and financial situation. The information may not be appropriate to your individual needs and you should seek advice from a specialist advisor before making any financial decisions.