Insurance can help you be prepared for the unexpected. But if you’re looking to free up some cash, there are options that could help reduce your insurance premium.

1. Consider a higher excess

The excess is the amount you’ll have to pay when the insurance company agrees to pay your claim. If your excess is $500, for example, and you choose to increase it to $1,000, your insurance premiums will likely decrease but you will have to pay that higher amount should you have a claim accepted.

Speak to your insurer to see how much an increase in excess would lower your premium to decide if this option suits you. You need to be sure you can afford the excess if the unexpected does happen.

2. Review what's covered

The value of your insured items may have changed since you took out your policy. List all the items you need covered to make sure you have an accurate estimation. Then use an online calculator so you don’t end up overestimating or underestimating your insured amount. If you’ve overestimated, reducing the sum insured, may reduce the cost of your premium.

3. Combine policies

Some insurers offer discounts when you combine different covers under the one insurance policy. For example, if you have building and contents cover on the one policy you may be eligible for a combined policy discount. Speak to your insurer to see if they can offer you a deal.

4. Do your research

Check what is available in the market and make sure you have the policy that’s best suited to your needs. Thinking about what events you want to be covered for and the amount of cover you’ll need should one of these events occur, can help you narrow down your options.

Things you should know

This article is intended to provide general information of an educational nature only. It does not have regard to the financial situation or needs of any reader and must not be relied upon as financial product advice.