Did you know that the concept of insurance dates all the way back to Ancient Greece? They called it Bottomry. Merchants would take a loan when they left port, and if their ship sank, the debt would be erased with it. Thankfully, today’s insurance doesn’t require you to take out a loan. Instead, you get the luxury of choice and a competitive marketplace. Somewhere, there is the right plan for you…the trick is finding it.
That’s where our tips come in handy. With the cost of living climbing steadily, insurance costs have naturally also increased for most households – so there has never been a better time to shop around and find some competitive rates on all your household’s insurance policies.
Here are a few tips for streamlining your insurance shopping and policy comparisons, saving you from getting lost in hundreds of pages worth of contracts.
Shopping For Different Types of Insurance
“Insurance” ranges from keeping your teeth pearly to finding a new home after a bushfire. With so many policies and insurance types, you need to spend time building up coverage that suits your specific needs and situation.
It’s always worth spending time deciphering the specific coverage (as well as what’s not included) for each of the policies you’re considering. But let’s be honest – does anyone actually have the time, or patience, to read the fine print of one document, let alone five or ten?
Instead of trawling through endless small text, use the Adobe chat PDF AI tool to search the text and extract the key information so you know exactly what you’re signing up for, and don’t get hit with hidden fees or conditions. It cuts down on the reading and lets you skip the jargon… but make sure you don’t treat AI summaries as gospel. Confirm the most important information with your own eyes before you sign any dotted lines.
Let’s take a quick look at what to keep in mind and identify when you’re comparing policies for different kinds of insurance.
Health Insurance
Australia’s healthcare system is operated both by government-funded services and for-profit private companies. Subsequently, the range between health policies is enormous. Ambulance cover, hospital cover, extras – and don’t forget that dental cover is a completely different policy.
Many people get health insurance through their employer, but even then you’ll want to know exactly which policy category you fall into. The essentials are preventive care, check-ups, and emergency services. If you have your own specific health concerns or pre-existing conditions, you’ll naturally want to factor them in when evaluating the policy premiums and other costs associated with all these different categories.
It’s also worth mentioning that some companies offer discounts if you share your health data with them, particularly if you have a relatively clean bill of health. So upon partnering with any health insurance provider, make sure you’re ready to share your medical history, ranging from every hospital and ER visit to every virtual or telehealth GP appointment.
Car Insurance
As a general rule, car insurance is a legal necessity for all drivers in Australia, but the basic cover doesn’t cover your car at all – just damage caused to other people’s. On top of this, you can add personal injury protection, uninsured motorist coverage, collision, and comprehensive insurance.
With these, you can cover your health, your car, and even avoid paying for freak events like hit-and-runs and damage caused by hailstorms. The rates vary, but remember that good drivers pay less, so if you can back this statement up with records that provide good track records, you’re likely to get a better rate.
Home & Contents or Building Insurance
If you’re a homeowner, you’re likely already dealing with mortgage stress – you don’t want to add insurance stress onto your plate. Ironically, this is also why doing your due diligence and finding the right home insurance policy for your property is so essential.
Basically, there are two different types of home insurance: home and contents insurance (which covers both the building and its contents), and building insurance (which only covers the building and any built-in fittings). Both home and contents or building insurance protects your house from structural events that damage the exterior of your property, such as fire, storm, and even explosion damage. If you’re unable to live in your house for a period of time, your insurance provider may also be able to provide you with an alternative place to live, providing peace of mind and housing security.
Home and contents insurance is filled with plenty of optional extras and alternates (such as holiday rental insurance), but if you’re buying car insurance too, it’s often wise to go with a policy that bundles them for a discount.
Renters or Contents Insurance
Renters or contents insurance protects the belongings inside a property, whether you own a house or not. Your items will be covered in the case of events such as theft and flooding. If you own lots of expensive technology or work from home, you might want to look for extensive (or separate) policies that offer a higher coverage or replacement value.
You can also look into insurance specifically for small businesses that operate from home, as work-related items in your house may not be covered by your home or contents insurance.
Life Insurance
Life insurance isn’t taken out for yourself, it’s for your dependents – your husband, wife, children, and even pets. There are two types of life insurance to consider: term life, and whole life. Term life means that if you pass away within the term you’ve paid for (generally a multiple of 5 or 10 years) your family receives financial compensation.
Contrastingly, whole life insurance does sometimes ‘expire’, but it’s there to offer financial and asset security to your family, whenever the time comes. Because of this, whole life is a much pricier insurance investment, but also more useful – you can use it to take out loans.
Disability Insurance
1 in 6 people have a disability, which ranges from those that affect all aspects of your life, to smaller conditions that don’t require complete lifestyle adjustments. Most jobs that put you at moderate risk of a physical disability will give you partial cover as part of your employment, but most major employers offer mental health cover too. This is also worth factoring in if you have any genetic or hereditary conditions, though you’ll need to disclose this when receiving quotes from different providers.
Long-Term Care Insurance
Huntington’s, Alzheimer’s, and some cancers can be inherited. It’s far from a sure thing, but if they run in the family, long-term care insurance may be on the table. Even while you’re young, it’s something to plan for, so you’ll be able to have the financial burdens of such issues taken off your shoulders later. In fact, these plans are cheaper the younger you are, and you can pair them with inflation protection and a “maximum amount paid” to keep the costs manageable.
Extra Tips When Shopping For Insurance
Be wary of deductibles
Deductibles are what you have to pay before your insurance kicks in. It might be a portion of your car repairs or a whole health bill. If your plan has high deductibles, you’ll be paying less for insurance, but a lot more of the bill when you end up needing to claim on your insurance.
Use a health savings account
A health savings account (HSA) is a special account type you can open with your bank to cut down on tax, and save for high health-related bills. Even if you decide not to pay for health or life insurance, you should use a HSA for the tax-break. But, if you do have health insurance, you can use it to cover your deductibles.
Manage your insurance proactively
If you’re lazy when picking insurance, those dollars that you could have saved will build and build over the years. Decide what you need for your plan, research the options, consult friends, family, and a financial advisor, especially if you’re navigating multiple insurance policies. Each year, you can renegotiate or look for better options. Providers often give discounts just to keep you with their company.
Insurance Shopping In Conclusion
In essence, insurance is a subscription for your comfort. You choose what parts of your life you want to protect and then decide which level of security you want to pay for. In this blog, we’ve considered what you should look out for when you’re comparing policies between different providers of certain insurance types, as well as general tips to help you get the most value out of the policies most suited to you. Remember to consult a financial professional before making any big commitment decisions.
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