Renewing your insurance
Something old, something renewed
When it comes to renewing your insurance, the easiest thing to
do is to continue with your existing insurer. However, by sticking
with the same insurer every year, you could miss out on getting a
better deal on your premium and the best cover for your needs.
Start shopping around early and follow our tips to get the very
best deal on your insurance.
Three steps to getting a better
deal on your insurance
Don't leave it to the last day to renew your insurance - one in
three people who shop around get a better deal. Get started with
these three steps.
Step 1: Check if you're getting the best deal right now
Take 5 minutes to check if you're getting the best deal on your
current insurance by getting a quote from another insurer to see
what your premium would be through them.
If the figures are similar, consider asking your current insurer
for a better deal. If you're paying too much, perhaps it's time to
move to step two.
Step 2: Review your current insurance cover
Before you renew your insurance, check if you need a different
level of cover from last year. For example, has your house
increased or decreased in value? Have you bought new whitegoods or
an entertainment system? Do you need special or expensive items
(e.g. an engagement ring) to be listed as part of your cover?
Weigh up the difference between having a high premium and low excess, versus a lower premium with a
higher excess. You may be able to save on your premium by
increasing your excess.
Once you know the level of cover you need, move on to the final
step: getting quotes and choosing an insurer.
Step 3: Get at least two more quotes and compare prices
Get at least two more quotes to compare your current premium
with that of similar policies. Comparison websites can help
you do this, but bear in mind these websites usually only include
some of the policies available on the market, not all of them.
Look for any discounts offered for online renewals or
applications and for paying the premium annually instead of
Case study: Abhishek gets a better deal on his insurance
Abhishek received his home and contents insurance renewal and
discovered that his premium had risen significantly for the next 12
months of cover. He decided to look at other insurers to see if he
could find a better policy for his needs.
Before comparing insurers, Abhishek worked out that, because
he'd done some home improvements and installed a new entertainment
system during the year, he would need a higher level of cover. He
compared insurers online and discovered that he could save $94 by
Abhishek bought the new policy with the new insurer, which took
effect when his old policy expired.
Things to consider when
renewing your insurance
If your insurance is due for renewal, here are some things to
Consider putting deadlocks on doors and windows
Check if your insurer requires you to have deadlocks on windows
and doors. Some insurers require you to do this if you have a large
amount of contents cover.
No claim bonuses
If you have a good driving record, insurers may offer you a 'no claim
bonus'. This is a reduced premium for drivers who haven't
made a claim. Shop around and compare quotes between insurers who
do and do not offer these discounts and carefully check the policy
wording to understand the impact a claim (both at-fault and
not-at-fault) may have on your premium and the no claim bonus.
Get a discount for off-street parking or a car alarm
Check if insurers will reduce your premium if you park your car
off the street or if you install an alarm or immobiliser.
Bundle insurance policies together
See if you can get a discount if you bundle your compulsory
third party insurance with your other car insurance or home
insurance. Before you do, make sure the policies are right for you.
Otherwise, the best option may be to go with two different
Worried about automatic
Some insurers automatically renew insurance policies every year
through a direct debit to your credit card or savings account.
If your policy has been unexpectedly automatically
renewed, talk to your insurer as soon as possible.
Automatic renewals can be convenient and ensure that you
continue to be insured. However, if you are not aware that your
insurance is set up this way, it could lead to unnecessarily
purchasing a second insurance policy, overdrawn accounts and
Check if your policy automatically renews
While some insurers will tell you before you buy your
policy that it automatically renews every year, some may only
provide this information in their product disclosure statement (PDS)
and renewal notices. So, when you're purchasing insurance, if
you're unsure whether it automatically renews, ask your insurer
before you hand over your account details.
Read ASIC's media release about our
review of car insurers that automatically renew annual insurance
How to stop auto-renewal of your insurance policy
If you don't want your policy to automatically renew, then you
need to let your insurer know:
- before the renewal date - tell your
insurer that you want to opt out of the automatic renewal process.
Some insurers will let you do this but others may not if it is
their only renewal option. If this is the case, you will have to
shop around for another insurance company.
- after the policy has been renewed
- contact your insurer and ask for a pro-rata refund. Every
insurer will have its own refund policy and cooling-off period, so
check how much refund you can get and if there are any cancellation
Check your insurance policy each year and shop
around for the best deal when renewal time comes around.
Last updated: 25 Jun 2018