The co-founder of GetReminded, Silje Dreyer, believes that statistically we are more loyal to our insurance providers than our partners.
“It’s crazy to think the divorce rate, which impacts two in five Australians, is higher than people wanting to get the best value for money when it comes to household services,” said Ms Dreyer.
According to Ms Dreyer, this loyalty to our insurance providers is costing everyday Australians.
“Families can save around $2,800 a year on household expenses by knowing when contracts end for basic services,” said Ms Dreyer.
“Over the last year, more than three-quarters (78.4 per cent) of general insurance policies were renewed with the same company without approaching any other companies – an increase on the previous year when it was 77.5 per cent and currently represents 38.3 million policies,” said Ms Dreyer.
5 tips for savvy savers
According to Ms Dreyer, it is important for consumers to consider their individual needs and get a policy to match.
- Excess – If a policy with a higher excess is taken out, it will reduce the insurance premium or a low excess will do the opposite and increase premiums. Know what works best for you.
- Inclusions and exclusions – It is important to know what the policy covers. For example, some car insurance policies include windscreen replacement while others do not.
- Shop around – Most insurers will offer a newer customer a bigger discount in an effort to generate new business. If nothing else, by shopping around, consumers can better negotiate with their current provider.
- Last minute payment – Know ahead of time when your policy is due.
- Grouping policies – Grouping all policies with one provider seems sensible, but ensure each policy coverage is what is required. The bulk savings might be at the expense of something really important to your circumstances.
Cameron Micallef is a journalist at Nest Egg, writing primarily about personal wealth and economic markets.
Prior to this, Cameron worked for Australian Associated Press. He graduated from the University of Wollongong with a double degree in communications and commerce.