How to easily cut the cost of any insurance premium
If you see any Australian mention insurance you will see pain flicker across their face; Premiums are now causing serious damage to budgets due to the collision of many factors, from rising healthcare costs to an aging population and natural disasters.
Indeed, insurers have lost nearly $2 billion from three events this year alone: ex-Tropical Cyclone Alfred ($1.43 billion), the North Queensland floods ($289 million) and the NSW Mid-North Coast and Hunter floods ($248 million), the Insurance Council of Australia said.
Insurers’ annual inflation-adjusted losses from floods, bushfires, storms and freezing temperatures have also tripled over the past three decades. So how can you maintain vital protections at lower prices across your range of insurance products?
Of course, insurance costs are rising, but it’s better to upgrade your policies rather than give up the financial security they provide.
First way: Increase your excess. The truth is that any insurance you don’t claim is successful. People tend to suffer from this, but it’s the definition of life going well… and Murphy’s Law dictates that: didn’t If you had insurance, things probably wouldn’t have gone so smoothly for you.
But, following this line of thinking, if you expect to make infrequent claims on most insurance (and you probably will), then a higher excess is a valid and powerful way to reduce cost from year to year. In fact, your savings will increase rapidly lid If you have to pay, it’s the cost of the higher excess.
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This is an approach you can apply in almost all public and private health insurance; Here you may not realize that you can have up to $750 more as a single and up to $1,500 more as a family and still be exempt from the Medicare Tax Surcharge.
(And if you’re considering dropping private healthcare, keep in mind that a single person earning more than $101,000 or a family or couple earning more than $202,000 will pay that penalty, up to 1.5 percent… that amount may cover the cost instead.)
Way two: Reduce your contents insurance. When it comes to the amount secured or how much you will be secured, you need to be extremely careful.
