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The easy money move hiding in your insurance policy

When was the last time you looked at your car or home insurance? If you’re thinking, “Honestly... not for a while,” you’re in good company.

By Brooke Le Poer Trench

  • Taking a fresh look at your insurance ensures that what you’re paying for still matches real life.
  • A quick review can be one of those quietly powerful money moves: a little time now, a lot more confidence later.
  • Reviewing your cover each year can give you the peace of mind that you’re protected where it matters, and only paying for the extras that you need.

Here's how to give your cover a check-up and find the level that fits you best.

1. Check what you’re really covered for at home

“Insurance is about being prepared for life’s surprises,” says John Binfield, general manager of insurance at CommBank. “But it should also give you confidence that you’re not overpaying for protection you don’t need or missing out on cover that matters.”

Start with the basics: what does your policy cover? It’s common to discover you’ve either drifted into paying for extras you don’t use or you’re not covered enough if something goes wrong. Home insurance is a big one for this. If you’ve renovated, bought new furniture, adopted a new work-from-home routine or your household has grown, your sum insured might need to go up. If you’ve downsized, it might be time to bring it down. Once you have a clear sense of what you need, choose cover that suits the way you live now – not the way you lived a few years ago.

Tip: You can use the CommBank building and contents calculators to help estimate a likely replacement cost so the number isn’t a guess.

2. Pick a car policy that fits your life

When it comes to car insurance, start by answering a few quick questions. Are you commuting less? Working from home more? Have younger drivers started using the car? Those details can affect the cover (and cost) that makes sense for you. The goal is to find a level of protection that works for your set-up and your budget.

If your driving habits have changed, start there. Look for options that let you align cover with how you actually use your car. “For those who don’t drive a lot, there’s often the opportunity to select a limited-kilometre allowance and reduce the premium,” says Binfield. “It’s a smart way to tailor cover to actual driving habits.”

Tip: Think about how you pay. Spreading costs month-to-month may help you stay on top of your budget and make insurance manageable.

3. Give your cover an annual check-up

The easiest way to stay on top of all this is to treat your insurance to a regular health check. A yearly review can reveal simple ways to save without weakening your safety net – whether that’s adjusting your excess, saving by combining building and contents cover or updating your details to reflect your current life stage. Even small tweaks can lighten the load on your monthly budget and leave you feeling confident that if life throws a surprise, you’re covered.

Explore a range of available Insurance options.

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An earlier version of this article was published in Brighter magazine.

This article provides 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 personal financial product advice. The views expressed by contributors are their own and don’t necessarily reflect the views of CBA. As the information has been provided without considering your objectives, financial situation or needs, you should, before acting on this information, consider what is appropriate for your circumstances, and where appropriate, consider the relevant Target Market Determination, Product Disclosure Statement and Terms and Conditions available on our website. You should also consider whether seeking independent professional legal, tax and financial advice is necessary. Every effort has been taken to ensure the information was correct as at the time of publishing but it may be subject to change. No part of the editorial contents may be reproduced or copied in any form without the prior permission and acknowledgement of CBA.