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, the smart
thing to do is to shop around to save money on premiums and get the
How to get the very best deal on
Don't leave it to the last day to renew your insurance -
you'll be tempted to stick with your current insurer because it's
easier than looking around for a better deal. Follow these tips and
start shopping around early.
Before you renew your insurance, check if you need a different
level of cover from last year. For contents insurance, make a list
of any new goods that need to be insured.
Get at least three quotes
Get at least three 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 monthly.
Check the level of cover and excess
Check if you need more, less or the same level of cover as last
year. Weigh up the difference between having a high premium and low
excess versus the opposite. You may be able to save on your premium
by increasing your excess.
Review your cover
Don't just accept the same level of cover as you had last year.
Take the time to work out if your house and your possessions have
grown or decreased in value over the last year. If you bought new
whitegoods or an entertainment system, you may want extra cover. Or
you may need special or expensive items (e.g. an engagement ring)
to be listed as part of your cover.
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.
What is a no claim bonus really worth?
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 reduction 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. This may be beneficial, although sometimes the best
option is to go with two different insurers.
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
you should talk to your insurer as soon as
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 that your policy
automatically renews every year before you purchase your policy,
some insurers 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
If your insurer unexpectedly renews your policy automatically,
contact them as soon as possible.
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 as it is
their only renewal option. If this is the case then 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 fees.
Check your insurance policy each year when
renewal time comes around. It can save you money and heartache,
should you ever have to make a claim.
Last updated: 14 Dec 2017