How to save money on your insurance

You’ve shopped around for the best insurance cover, and now you want to make sure you’re getting the best deal. Much of your premium is determined by what you’re covering, and how you set up your policy. Here are a few of our tips on how to pay less for your insurance.
Published in:   Car Contents House

Set the right sum insured

Whether it’s car, house or contents insurance, you’ll want to ensure you’re going to get back what you had. Setting your sum insured too high means you’re paying a premium for cover you might never use.

A contents insurance calculator can take you through the process of valuing what you own, and makes the process a little less intimidating. For house insurance, you need to understand the rebuild cost of your home – it can be different to the market value. 

You can use the Cordell Sum Sure calculator to help, or employ the services of a professional, like a Quantity Surveyor.

Think about the riskiness of what you’re insuring

When working out the cost of insurance, one thing we look at is the risk of different assets. For instance, some car types are stolen more than others. Likewise, some houses have a higher chance of something happening to them, for example, if they’re on an earthquake fault line, floodplain or perched on a cliff.

Naturally, items with a higher chance of having something going wrong will cost a bit more to insure. Consider this before making your next big purchase.

Choose a higher excess level

The excess is how much of a claim you pay, and increasing it can be the easiest way to reduce your premium. 

A higher excess reduces the premium you pay, but means you’ll pay a bit more at claim time. It can be a pain for small claims (those under your excess amount), as you’ll end up covering those costs yourself. 

Look for policies that offer benefits such as Tower’s Plus cover glass breakage benefit which reduces your excess to $100 and will not affect your no claims bonus.

Check your discounts

It’s often cheaper to cover your car, house and contents with one insurer. With Tower Insurance, you can save up to 20% when you have all three with us*.

You could also save on car and contents policies if you have certain alarms installed. Check with your insurer to see if you’re eligible. 

Review your payment frequency

Your premium can be higher if you pay in instalments (like fortnightly or monthly). Check if you could save on your premium by paying annually. 

Save online

If you’re looking to take out a new policy and are confident setting up insurance on your own, buying insurance online can sometimes save you money. 

Check your policies

Your circumstances are always changing and your insurance cover might not have kept pace. Have you added a benefit to your policy that’s no longer needed? Have new policies been introduced that might fit your situation better? We can help you check that you have the right type and amount of cover.

*Excludes travel, commercial vehicle, business and some cover under rural policies, GST, government levies and some optional special benefits. Discount varies depending on the total number and type of insurance policies with Tower.

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