Insurance premiums are rapidly rising because of climate change, natural disasters and inflation. But there are ways to save costs says Professor Michael Sherris, an expert on insurance from the University of New South Wales.
One key element is minimising premiums while reducing risk. For example do you live in a flood or bushfire prone area? Then it’s important to have coverage. But perhaps not so critical if you live well away from these kinds of hazards. Professor Sherris advises you to consider the cost of insurance and how much risk you can afford to finance from your savings.
Look at the different types of insurances you have, and how much risk to sensibly take. For example, if you don’t drive much you could change to a policy based on the number of kilometres you drive. Shop around and get quotes. If you have been with one company for a long time you are likely to save money by changing to a different insurer.
What are called mutual insurers are also worth exploring, these are member owned companies who are generally have cheaper premiums as they are not for profit.
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