Amidst the ongoing challenges posed by the cost of living crisis, many families in New Zealand are prioritizing ways to reduce expenses. One area where potential savings may be found is in insurance costs. While it’s essential to ensure adequate coverage, there are strategies to explore for lowering insurance expenses. Here are some considerations:
Review Your Coverage
It’s wise to regularly assess your insurance policies to ensure you’re adequately covered for your current needs. Circumstances change over time, influencing your insurance requirements. For instance, if you’ve insured drivers under 25 to operate your vehicle but no longer do so, removing this coverage can reduce premiums. Similarly, if you’ve quit smoking, updating your life insurance policy to reflect non-smoking status can lead to lower premiums.
Bundle Policies
Consolidating multiple insurance policies with a single provider often qualifies you for a multi-policy discount. Additionally, bundling policies can streamline the claims processes, potentially saving money when claiming across different policies, such as home and contents insurance after a single event.
Opt for a Higher Excess
Choosing a higher excess amount for house, car, or contents insurance claims can help lower premiums. The excess is the portion of a loss you’re required to pay in the event of a claim. However, consider whether you can readily access the higher excess amount in case of an unexpected event. Also, weigh the cost of the excess against the value of replacing the item to determine if making a claim is worthwhile.
Consult a Financial Adviser
Before making decisions about your insurance coverage, consider consulting a financial adviser, especially if you’re concerned about premiums. Updating your adviser on any changes in your circumstances can help ensure you’re paying appropriate premiums for your current situation.
By implementing these strategies and seeking professional advice, you can potentially reduce insurance costs while maintaining adequate coverage to safeguard your assets and financial well-being.
FoxPlan help everyone get on the right track. If you would like to explore insurance options, reach out to them for a free, no obligation chat. Check out their site here
