What is cheap insurance really costing you?
These days, buying insurance can be like purchasing a snack from a vending machine with all kinds of global big brands offering cheap, fast, direct-to-market policies.
But as we know, cheaper is NOT always better.
Two reports released by ASIC on home insurance showed many consumers were accepting policies without professional insurance advice to save a few dollars, leading to wide-spread under-insurance and other problems.
Some didn’t even know that policies varied, figuring they were all very much the same.
The big question you need to ask yourself when presented with these ‘fast food’ options is: WHY ARE THEY CHEAPER?
Some additional research we discovered on consumer behaviour thankfully showed many more people were doing just that.
We want o make sure when you accept that policy, you understand WHY it’s cheaper. The answer is usually because of REDUCED COVER and MINIMAL CUSTOMER SERVICE.
So when comparing a more expensive policy with a cheaper version, make sure you are comparing apples with apples. Remember, there are two types of Home/Contents insurance; Accidental Damage & Defined Events. There is also a vast difference in coverage between the two types.
Find out exactly what you are covered for and what you are not covered for (read over the policy exclusions).
More importantly, ask yourself – ‘If I had to make a claim, would I want help from an expert broker who is used to dealing with these situations or would I be happy to navigate the paperwork myself?”.
If you need help comparing policies, phone us on 02 66 202 000. We are happy to help.