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It is not a surprise to receive a notice from your insurer letting you know your premiums are going up. We all know that insurance premiums have a jump rise recently. It has affected the budget plan for many households. Rather than staying out of the insurance market, we have some things to do to bring the premium cost down.
1.Choose a higher excess
A higher excess – the amount you pay if you need to claim – will significantly lower your premiums. Insurers will provide different levels of excess, representing different rate of discount. The higher the excess, the lower the premium. Choosing an excess that is within your ability to pay will help avoid wasting money on premiums.
2. Review your insurance and reassess your needs
Regular review on your insurance needs could save hundreds each year. For example, if you have life insurance, the amount of coverage you need when you have a young family and a sizable mortgage will be different to what you need when the kids have left home and your mortgage is nearly repaid.
3. Multi-policy discount
If you buy more than one policies with the same insurer, you could get a multi-policy discount. For example, if you buy AIA life and health insurance and AIA vitality, you could save up to 31%. If for general insurance, you could put together house and contents, and car insurance with one insurer.
4. Consider level premium for life and living insurance. If you are buying life and living insurance, you would have the choice to pay on premiums either on year-on-year (CPI) basis or on level basis. For example, if you choose a level premium for 10 years, your premiums would be the average of the 10-year term. Though you would pay higher premium at the beginning, you could save money eventually.
5. Pay premiums annually.
Some insurers provide a discount on premiums if premiums are paid annually.
6. Shop around
website search lets you compare insurance premiums to get a good idea of what insurers offer the best prices. It’s worth regularly spending some time comparing insurance, as you can often find big savings.
7. Consider an alarm or camera in house and car insurance.
If we put an alarm in the online quoting system, the insurers would give you a cheaper premium.
8. Third-party in car insurance
A third-party car insurance is to pay for the damage you cause to another car. This is the much cheaper option for your car insurance. You can also get a third-party fire and theft policy, which covers you if your car is stolen or damaged by fire too.
9. Consider a bare-bones policy, if you really need to A fire-only or fire and burglary policy on your home will mean you’re not covered for everything but can keep some protection and, crucially, will still be entitled to EQCover in a natural disaster.
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Patrick Wang
