It pays to check your insurance options

Simply paying an insurance renewal without giving it much thought can end up leaving a big hole in your pocket.

Companies often rely on customers being lazy and failing to research whether they can get a better deal.

All it takes is for customers to call up their own or rival insurers to see if they can score a better deal.

When your policy renewal arrives in the post, there are several steps you should take to ensure you aren't getting the raw end of a bargain.

Price

Understandinsurance.com.au spokesman Campbell Fuller says there's plenty of choice out there and customers should not be complacent when the renewal notice arrives in the post, regardless of what type of insurance it is, from car to home to health.

"It's often tempting to switch insurers to find a better price. However, price is only one consideration," he said.

It's recommended to not adopt a "set and forget" mindset on car insurance policies 

"If you have a cheaper quote, you can contact your insurer to see if it will offer a better deal."

Insurers often provide discounts if you sign up to multiple forms of insurance.

Comparing policies

Reading an insurance policy's fine print isn't an enjoyable experience, but consumers need do it to ensure they know what they are - and are not - covered for.

Fuller says it's essential to go through the policy with a fine-tooth comb.

"Policies vary in what's included or excluded, coverage limits, disclosure requirements and also the amount of excess you pay when making a claim," he said.

Know the excess charge and also check whether the policy has an exclusion or other conditions that could affect your level of cover.

Always be honest too when obtaining a quote – if you're not, you could leave yourself uninsured.

Competition 

Insurance providers continue to ramp up their advertising on enticing deals to lure in new customers and iSelect spokeswoman Laura Crowden says this is good for those looking for competitive deals.

"Increasing competition among insurers means there are more providers than ever vigorously competing for your business," she said.

"It's important to take advantage of this and get the right policy at the right price."

She urges customers not to adopt a "set and forget" mindset on their policies and make sure their new policy is applicable to their circumstances.

CarsGuide does not operate under an Australian financial services licence and relies on the exemption available under section 911A(2)(eb) of the Corporations Act 2001 (Cth) in respect of any advice given. Any advice on this site is general in nature and does not take into consideration your objectives, financial situation or needs. Before making a decision please consider these and the relevant Product Disclosure Statement.