It’s that time of year again for us.
Yep, time when our home & contents insurance is up for its annual renewal.
I prefer paying for our insurance bills annually as it helps me to find a better deal just before the current one is up for renewal. We have paid our insurance over a monthly timeframe, but because it’s always there you tend to forget about it.
Anyway, last year we found the best insurance coverage for us was with NRMA, but this was primarily due to good discounts we obtained by packaging our car insurances with them.
But, let’s see how we go this time around - generally I find insurers aren’t as competitive second year round because they know most people are too lazy to hunt for another deal.
Unfortunately for them the internet has changed how we can hunt. Yes I would agree with them if it involved calling or walking into offices, but the landscape has changed thanks to the internet.
So with my trusty laptop, a good internet connection and my browser I kicked off the race by typing in a nice juicy search phrase:
Plenty of ads sprouted at the top of this search term and because I don’t have all the time in the world I clicked on only a few that I was familiar with and wanted to check, these were:
- Budget Direct
After spending about 20 minutes in total going through each sites prompts the results were as follows for the annual costs (at each quote I selected the maximum excess available):
- NRMA = $760.36
- The disappointment with the NRMA quote upon logging in to My Account was that I couldn’t adjust the excess amount (I guess they assumed it would be the same as last year?). It would have been nice to play around with the excess value prior to locking the quote for the year.
- Budget Direct = $592.52
- Maximum excess here was $5,000
- AAMI = $1,215.66
- Maximum excess here was $3,000
- Allianz = $832.30
- Maximum excess here was $1,500
- Woolworths = $901.84
- Maximum excess here was $1,000
So this year it looks like Budget Direct wins, saving us $167.84 for 20 minutes of work!
Insurance is one element within your budget that you should always look to compare when it’s up for renewal. It only takes a small portion of your time (when you do it annually) and can help save you a little bit of money each time.
The reason why we look at using the maximum excess available is because we maintain a healthy float of excess cash in our bank account (our emergency fund) which enables us to tap into this reserve should we need in times of emergencies.
What tips do you have when renewing your home and contents insurance?