In the face of the ongoing cost of living crisis, finding ways to reduce expenses has become a top priority for many families across New Zealand. One area where you may be able to make savings is on your insurances. Although ensuring you have adequate cover is important, there are some options you can look at to lower your insurance costs. Read on to explore some of these considerations.
Review your cover
Regularly reviewing your insurance to check you’re insured for the right things at the right amount is a great place to start when looking to reduce your insurance costs. Your circumstances change over time and so do your insurance needs.
For example, perhaps you’ve insured under 25 year old drivers to drive your vehicle but no one under 25 ever drives your vehicle. Therefore you could elect to remove this cover which will reduce your premium as the risk is seen to be lower. Another change in circumstance could be if you’re a smoker on your life insurance policy. If you’ve quit smoking (not smoked at all for 12 months) you can have your policy updated to a non-smoker which will reduce your premiums.
Bundle your insurances
The more insurances you hold with a single provider can help save you money as often it will mean you qualify for a multi-policy discount. You could also potentially save money when making a claim across multiple policies e.g. your house and contents are damaged in one event, as most providers will only charge one excess if you have both policies with them.
Upgrade your security
Ensuring you have a high level of security for your home, contents and vehicle could also reduce your insurance. Installing a security alarm at your home will reduce your premium with some insurers as your risk of burglary or damage to your property and contents is reduced. Also storing your vehicle in a locked garage rather than on the street or in your driveaway overnight can reduce your premiums.
Choose a higher excess
Another option available to lower the cost of your premiums is opting to pay a higher excess in the event of a claim on your house, car or contents insurance. Your nominated excess is the amount of a loss you’ll need to pay in the event of a claim.
However it’s important to consider whether you’d be able to easily access this amount of money in the event of a sudden and unexpected event. It also may mean you’re less likely to make a claim as it may not seem worth it if your excess is a similar cost to replacing something new anyway.
How can a Haven Financial Adviser help?
If you’re concerned about your premiums, speak to your Adviser before making any decisions about your cover. When speaking to your adviser, update them on any changes in your circumstances to help ensure you’re paying the right premiums for your current situation.
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