Times are tighter there’s no doubt.
The following are thoughts on how to save a few dollars on insurance premiums.
Home and contents
Check what level of excess you have. The excess is the amount you pay toward the cost of the replacement item when you make a claim. The larger the excess, the lower the premium.
If you don’t claim very often on smaller items, consider increasing the excess.
You may think, on a home insurance claim, you could come up with say, $1,000 toward a claim. Especially if you consider your insurance cover is for the major losses. Like the type of claim amounts that the last weather event caused.
People tend to claim more often on contents cover, than home insurance. However, depending on your finances and the way you “look" at insurance, you could consider increasing the excess on your contents cover.
Basically, by having a large excess, you are saying;
“Insurance is for the big things, (the major losses) not so much the day-to-day little things”.
Check with your insurer on the premium reduction, with say a $500 and a $1,000 excess, then “weigh up” if the savings are worthwhile.
Private Health Insurance
You can apply the same principle to Private Health Insurance.
You could pay the first $500, $1,000 or more toward a procedure and the insurer pays the rest. Using this principle, you may not have to cancel your health insurance cover, especially in your older years when the cost increases substantially (and the need is often at its highest).
Get professional advice before proceeding with applying or increasing an excess though. We are always here to help or point you in the right direction.
You can view our disclosure information on our website here : https://www.sinclairinsurance.co.nz/financial-advice-disclosure.html
Bob Sinclair is the owner and director of Sinclair Solutions