Slash your home insurance bill by saving $879 in under an hour!
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Navigating the ever-rising costs of living can be a daunting task, especially when it comes to the necessary expenses that protect our homes and valuables.
For many, home insurance is a non-negotiable expense, providing peace of mind against the unexpected.
However, with premiums on the rise, it's becoming increasingly difficult for households to keep up with the payments.
A staggering 1.6 million Australian households are finding it tough to afford their insurance premiums.
But there's hope yet! An individual named Nicole Pedersen-McKinnon managed to cut her home insurance premium by a whopping $879 in just 48 minutes—and there's potential for you to do the same.
The journey to her savings began with a startling renewal notice: a 23 per cent increase from the previous year, followed by another 7 per cent hike this year.
With reports from the Actuaries Institute confirming that premiums have surged by up to 30 percent, it was clear that action needed to be taken.
Here's the step-by-step process that led to significant savings:
1. Ask for a Discount: Loyalty should come with its perks. Start by reminding your insurer of your longstanding relationship with them and any multiple policies you hold with them.
‘As I do every year, I began by asking for a discount. “I’m a loyal customer and have multiple policies with your institution; what can you do for me?”’ Nicole said.
‘My insurer: “We thank you for your loyalty—we can do nothing.”’
Inquire about any loyalty discounts or price breaks for valued customers.
2. Escalate Your Concerns: If the initial response is less than satisfactory, don't hesitate to ask for your request to be escalated to a supervisor. Persistence can pay off.
‘After the increasingly flustered phone consultant had informed me I couldn’t cut my insured amount either—“Thanks to escalating rebuild expenses, your sum insured is already at a bare minimum”—I asked him to escalate my request to a supervisor,’ she said.
‘He came back with a silly suggestion to up my building excess from $2000 to the highest possible $5000, to cut my premium by $838.’
‘Instead of taking on that unacceptable out-of-pocket risk, I set about making similar savings with lower risk,’ she added.
3. Review Your Policy Details: Take the time to go through your policy line by line. Understand what you're paying for and question each item.
Are you insuring outdated technology at a higher cost than it's worth? Could you increase your excess to lower your premium without taking too much risk?
4. Eliminate Unnecessary Extras: Consider whether insuring certain items, like older electronics, is cost-effective. The rapid depreciation of technology might mean that the premiums aren't justified.
’To get $879 off: Me: “There’s an iPhone 14 Pro on my policy—how much do I save if I remove it?”’ Nicole said.
‘The answer was $217. What was I paying to insure my son’s much older iPhone 12 Pro? That was costing $256. His MacBook Air, 2017 model: $169. My Microsoft Surface Pro—again, a dinosaur: $237.’
Nicole said the rapid depreciation of technology might mean that the premiums aren't justified.
However, she kept insurance for some jewellery as she ‘would be just devastated but a bit destitute if (she) had to replace it’.
5. Evaluate Optional Covers: Some add-ons are worth keeping due to their low cost and high value.
For Nicole, three things fell under the ‘may-as-well-keep’ cover.
‘Firstly, I wouldn’t be without some version of a rebuild safety net,’ she said.
‘It is opt-in but ensures that if construction costs spike hugely due, say, to a natural disaster and sheer demand, there is a rebuild buffer. Mine is 25 per cent…for $25! I’d venture that’s the best $25 I spend all year.’
‘But what about the heat of the disaster moment? For me, that’s the second sensible optional extra: the emergency tradie assistance service, which costs just $59.’
Nicole’s third ‘why not’ insurance inclusion is motor burnout.
‘Sure, most policies cut out once appliances get older than 10 years, but that one represents only $8 of my overall annual premium. It’s hardly wasting money, so on that one, I stopped wasting breath,’ she said.
Have you had success in reducing your home insurance premiums? Share your experiences and tips in the comments below!
For many, home insurance is a non-negotiable expense, providing peace of mind against the unexpected.
However, with premiums on the rise, it's becoming increasingly difficult for households to keep up with the payments.
A staggering 1.6 million Australian households are finding it tough to afford their insurance premiums.
But there's hope yet! An individual named Nicole Pedersen-McKinnon managed to cut her home insurance premium by a whopping $879 in just 48 minutes—and there's potential for you to do the same.
Nicole managed to cut her home insurance premium to $879 in only 48 minutes. Credit: Shutterstock
The journey to her savings began with a startling renewal notice: a 23 per cent increase from the previous year, followed by another 7 per cent hike this year.
With reports from the Actuaries Institute confirming that premiums have surged by up to 30 percent, it was clear that action needed to be taken.
Here's the step-by-step process that led to significant savings:
1. Ask for a Discount: Loyalty should come with its perks. Start by reminding your insurer of your longstanding relationship with them and any multiple policies you hold with them.
‘As I do every year, I began by asking for a discount. “I’m a loyal customer and have multiple policies with your institution; what can you do for me?”’ Nicole said.
‘My insurer: “We thank you for your loyalty—we can do nothing.”’
Inquire about any loyalty discounts or price breaks for valued customers.
2. Escalate Your Concerns: If the initial response is less than satisfactory, don't hesitate to ask for your request to be escalated to a supervisor. Persistence can pay off.
‘After the increasingly flustered phone consultant had informed me I couldn’t cut my insured amount either—“Thanks to escalating rebuild expenses, your sum insured is already at a bare minimum”—I asked him to escalate my request to a supervisor,’ she said.
‘He came back with a silly suggestion to up my building excess from $2000 to the highest possible $5000, to cut my premium by $838.’
‘Instead of taking on that unacceptable out-of-pocket risk, I set about making similar savings with lower risk,’ she added.
3. Review Your Policy Details: Take the time to go through your policy line by line. Understand what you're paying for and question each item.
Are you insuring outdated technology at a higher cost than it's worth? Could you increase your excess to lower your premium without taking too much risk?
When asking for an insurance premium discount, persistence pays off. Credit: Shutterstock
4. Eliminate Unnecessary Extras: Consider whether insuring certain items, like older electronics, is cost-effective. The rapid depreciation of technology might mean that the premiums aren't justified.
’To get $879 off: Me: “There’s an iPhone 14 Pro on my policy—how much do I save if I remove it?”’ Nicole said.
‘The answer was $217. What was I paying to insure my son’s much older iPhone 12 Pro? That was costing $256. His MacBook Air, 2017 model: $169. My Microsoft Surface Pro—again, a dinosaur: $237.’
Nicole said the rapid depreciation of technology might mean that the premiums aren't justified.
However, she kept insurance for some jewellery as she ‘would be just devastated but a bit destitute if (she) had to replace it’.
5. Evaluate Optional Covers: Some add-ons are worth keeping due to their low cost and high value.
For Nicole, three things fell under the ‘may-as-well-keep’ cover.
‘Firstly, I wouldn’t be without some version of a rebuild safety net,’ she said.
‘It is opt-in but ensures that if construction costs spike hugely due, say, to a natural disaster and sheer demand, there is a rebuild buffer. Mine is 25 per cent…for $25! I’d venture that’s the best $25 I spend all year.’
‘But what about the heat of the disaster moment? For me, that’s the second sensible optional extra: the emergency tradie assistance service, which costs just $59.’
Nicole’s third ‘why not’ insurance inclusion is motor burnout.
‘Sure, most policies cut out once appliances get older than 10 years, but that one represents only $8 of my overall annual premium. It’s hardly wasting money, so on that one, I stopped wasting breath,’ she said.
