Get your general insurance under control with YourShare
Sally Farrow
Insurance: it’s what keeps life’s unexpected events from emptying our pockets. But many of us don’t have enough of it, or we’re paying too much for what we’ve got. Since insurance is designed to save you cash, this is one expense where shopping around for the perfect product at the perfect price is definitely worthwhile!
It's one of our biggest single expenses, yet still the majority of us simply don't shop around for our insurance – and that means we are almost certainly not getting the best deal. Make sure you know what you’re paying – and better yet, look to put some of that money back in your own pocket!
What is ‘general insurance’?
It’s essential that you know how much you are insured for and that your general insurance covers your needs and the cost of total replacement of your assets in the case of an accident (natural or otherwise), or damage or theft.
The basic types of general insurance are:
• Motor Vehicle Insurance and CTP
• Home & Contents Insurance
• Travel Insurance
• Landlords Insurance
The Insurance Council of Australia estimates that more than 40% of households fail to correctly assess the value of their home and contents, so there's a real chance you could be under-insured.
Both over-insurance and under-insurance issues are a problem in Australia. You need to find that happy medium that sees that you are covered for the right amount, for a premium your family can afford, whether it’s paid by the month or annually.
Motor Vehicle Insurance
Can you imagine what would happen if you crashed your $30,000 car into a $100,000 car? Could you possibly afford to pay for damages to your car and the other person’s car in cash?
If you are insured for Compulsory Third Party (CTP) only, you’re covered for on-road injury to others. But damage to another person’s vehicle will be an out-of-pocket cost to you, and could add up to thousands of dollars.
Comprehensive car insurance is not compulsory, but can be a very important cost-saving measure in the long run for you and your family. Your level of insurance cover needs to give you confidence that you’ll be covered for everything that is relevant for your family, even down to what other people might consider to be minor details. For example, if you live in an area where there are dirt roads and often have windscreens cracked or damaged by rocks, then adding ‘windscreen cover’ into your policy would be a sensible and potentially huge cost-saving feature in your car insurance policy.
Knowing how much cover you need and finding the right cover for the right price will see that you and your family are comfortably covered, and in the long run, this will save you more.
Home and Contents Insurance
In the case of home and contents insurance, it is your choice as to how much you insure your home for, and this includes all of your belongings. If your house is worth $350,000, and you insure and estimate its value at $200,000, you could potentially be liable for the difference in rebuilding of $150,000.
Travel Insurance
More than 20,000 Australian travellers find themselves in difficulty overseas every year. Making sure that you are covered adequately ensures that in the case of emergency, you have the means to receive the care that you and your family require. Your level of insurance cover in the case of theft, damage, cancellation and trip interruption can mean a big difference to how your holiday turns out. Imagine being delayed at an airport with a young family and not having your travel insurance cover the option of staying in a hotel for the night; that could add a nasty surprise to your holiday budget!
Like home and contents insurance, you can choose how much and what you are covered for. Knowing what you need to be covered for and ensuring that you are covered for all holiday activities can actually save you more. A family of four travelling to New Zealand for two weeks can receive comprehensive travel insurance for $400-$500 which will cover their luggage and valuables alone for up to $30,000.
But should the family decide to ski and have an accident, they will find that this is excluded from their cover, and all associated costs will be out-of pocket. So it really is important to think about all the activities you and your family will partake in and the value of the possessions you are taking with you so that you can make sure your holiday memories are pleasant ones!
Landlords Insurance
If you have invested in property, then like anything else, you want to make sure your hard-earned money is being protected. You often won’t personally be choosing the tenants for your property or be onsite to spot risks or issues in your building on an everyday basis. So making sure you are protected against the likes of unruly tenants and the damage they may cause to your property, or against the risk that they are unable or refuse to pay rent owing to you, is crucial.
How can I find the best policy for my family and how do I know if it is the right price?
Getting quotes through insurance brokers gives consumers the option to look at all the variations to the policies provided by many insurers.
There are large amounts of trailing commissions built into general insurance policies – around 20% of the base premium annually – that are there to encourage brokers to sign you up to the policy and keep you renewing each year. If you feel your broker is doing a great job in providing you service and that it’s worth 20% of your premium, then that is fantastic … BUT if you don’t think they are worth that commission, then put that money back into your own pocket!
YourShare is offering the chance to win $1,000 Cash in October!
YourShare provides a service to collect trailing commissions being generated from eligible financial products and rebate them back to you every year. These products include:
• new home & contents, motor vehicle, travel or landlords insurance applications through CGU (more insurers to come)
• existing & new retail superannuation & pension funds (not industry super funds)
• existing & new investment funds, managed funds & margin loans and more
• existing & new life insurance and income protection policies
• new or refinance applications for home loans through YourShare with 25 lenders
To go in the draw, all you need to do is submit a signed broker nomination form for an eligible financial product to YourShare before 31 October 2011.
Check out www.yourshare.com.au or call 1300 554 774 for entry details and more information.
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