When your various insurance policies are up for renewal, it can be tempting to take the easy route and just go ahead with the renewal and not think any further of it.
However, if you fail to take some important steps and do a little bit of research, you could be going ahead with a policy that hasn’t been adjusted to meet new circumstances in your life — therefore, rendering the policy mismatched for your needs — or, worse, failing to meet the contractual requirements specified by your insurer — therefore, possibly rendering your insurance policy null and void if you need to make a claim.
So, what sorts of things should you be doing at renewal to ensure that neither of these things happens? Let’s take a look.
Go over what your policy covers
Have a look at the policy schedule and check to make sure that what your policy cover matches what you need it to cover. Then, ask yourself the following questions:
- Are there many covered items that you don’t actually need cover for?
- Are there items that are excluded that you actually require cover for?
- Are the monetary limits of coverage satisfactory for your needs?
- Have you made any additions or changes that would require more comprehensive or additional coverage? (For example, have you conducted any renovations to your home or purchased new contents?)
- Do you plan to make any additions or changes in the coming year that will require more comprehensive or additional coverage?
- Are you happy with the service you have received from the insurer over the previous year?
Asking yourself these questions and then carefully considering your answers will go a long way towards making sure your insurance policies are tailored to your needs and circumstances, and will be most beneficial if you ever need to make a claim.
CONSIDER getting Other Quotes
The point of comparing insurance policies is, first and foremost, an activity in making sure your current policy is actually one that best fits your needs and circumstances.
While it can be tempting to simply choose the cheapest policy, this can often backfire if you ever need to make a claim. Your most important consideration when comparing quotes should always be the quality of the policy coverage and its relevance to your requirements.
Heard the saying "the ideal number of quotes is three".. it' good practice but you need to know what your looking at, price, policy, coverage, response and benefits. There is a lot of things to compare in these quotes but want to be let in on a secret?
Want to know a secret? By using us you've already done this process without even knowing! Our advisers do this comparison and know the products inside and out to give you the best result!
Make sure to notify your Broker if your circumstances have changed
Even the most minor things can affect your insurance policy, premium and likelihood of a claim being paid out. It is of utmost importance that you let your broker know if you made any changes to the item your insuring. This swings in roundabouts also because sometimes the improvements you've made such as new security systems or extinguishers can reduce your premium. Who doesn't like paying less!
Consider your payment schedule and excesses
Renewal time is a good time for you to consider whether you’re happy with your existing payment method and excesses. Ask yourself the following questions:
- Would you prefer to pay a higher premium in exchange for a lower excess, or is it more important to you to pay a lower premium in exchange for a higher excess?
- How would you like to go about paying the premium — does it work better for you to pay annually, quarterly, monthly or fortnightly? Is the option you’d prefer available?
But most importantly.. Don’t just wait for renewal to update your policy!
While you should absolutely be doing all of these things when your insurance policies are up for renewal, it certainly pays to be proactive and do these things whenever your circumstances change.
If you move, you'll need to update your insurance. If you acquire new assets, you'll need to update your insurance. If you have an alarm system installed, you could be in for a discount but you'll need to update your insurance. If you no longer park your car on the street, you'll need to update your insurance. If you sell expensive items and no longer need coverage for them, you'll need to update your insurance. If you have an alarm system installed, you could be in for a discount but you'll need to update your insurance. If you are planning on renovating, you'll need to update your insurance. Has the pattern become obvious?
Basically, regardless of whether your policy is up for renewal, if something in your life changes and you think it might be even remotely relevant to your insurance policy, it’s in your best interests to notify your broker. Sometimes, it can be the difference between a claim being paid out or not. And while you might think notifying your broker will lead to a higher premium, there are many circumstances where keeping your insurer abreast of any changes will actually reduce your premium.