With the cost of living rising, including your rent, you may be wondering how to save money on the price of your contents insurance policy.
"There are a number of simple things you can do to reduce premiums and save money on your contents insurance as a renter," says CHOICE insurance expert Jodi Bird.
"Our analysis of renters contents insurance found there are significant savings to be had if you shop around for your policy. We found that a renter in their 30s, with a contents sum insured of $50,000, could actually be overpaying $1285 a year in Victoria, $1598 in WA and a whopping $2574 in NT," says Bird.
Here are five ways to save on contents insurance as a renter:
1. Avoid the loyalty penalty
"Insurers generally charge existing customers more than new customers. If you remain with the same insurer, you'll pay more for your insurance, not less - we call this the loyalty penalty," says Bird.
"When your insurance comes up for renewal, it's a good idea to get a couple of quotes from other insurers."
2. Check you've got the right cover
"Insurers love to offer fancy extras such as accidental damage or fusion cover with their policies. These extras are usually unnecessary and you can save some extra cash by not opting into them," says Bird.
3. Increase your excess
"Increasing your excess is another easy way of lowering your premium. Just make sure you're comfortable with the amount of money you'd need to pay upfront in the event you need to use your insurance and replace your belongings," says Bird.
4. Bargain hunt
"Many insurers will offer discounts for new customers, so we recommend you get quotes from new insurers and your current one as a new customer. If the discount your existing insurer offers matches or beats the competitor's prices, tell your insurer to provide it, or they will lose a customer," says Bird.
You may also be able to get a discount by paying annually rather than monthly, or taking out other policies with the same insurer.
5. Should you cancel your contents insurance?
"We don't recommend cancelling your contents insurance, as your belongings can add up to much more than you realise. Shopping around for the best deal and increasing your excess will save you money and ensure your possessions are covered in the event of an emergency," says Bird.
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