What to do about inflating insurance premiums right now
As inflation seeps into almost everything we buy these days, you may have noticed that your car insurance or home and contents insurance premiums are getting more expensive.
So, what can you do to ease the effects of inflation on your wallet?
Insurance Australia Group (IAG), owners of retail insurance brands like NRMA, RACV, CGU, and SGIO, say they have had to increase premiums over the first half of 2023 due to inflationary pressures eating away at their insurance margins.
As a for-profit company, that means IAG customers are footing the bill in the form of premiums that have increased by double-digits on average.
IAG has mostly pinned these premium increases on the inflating cost of fulfilling car and home insurance claims as, for example, the price of replacement car parts soar. The insurance group also implicates the cost of recent natural disasters (like the floods in Auckland).
But IAG isn’t the only company passing the pinch of inflation onto customers. So, has your insurance premium grown recently? If so, here’s what you can do about it.
Give your insurance provider a call
If your last renewal notice came with an eye-popping price tag, your first move should always be to call your provider to see if your new premium can be reduced.
They might be more willing to cut you a deal if they hear that you’re thinking of leaving them for a new provider.
Of course, this hinges on you actually being happy with your current coverage. If not, it might be time for a change anyway.
Reassess what cover you actually need
Does your comprehensive car insurance policy come with a feature bloat? Does your home insurance policy cover everything you’d like it to?
You might be paying for car insurance benefits you don’t really need, or paying too much for not enough. Make sure you read through your current policy’s product disclosure statement (PDS) to find out exactly what you’re covered for (or not).
Compare insurance policies to find a new policy that fits
If you feel like you’ve outgrown your policy, then it could be time to compare car insurance or home insurance policies. You might even snag yourself a deal, like discounts for buying a policy online.
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