Rising cost of Insurance

Most people have probably noticed that their domestic (Home, Motor etc.) policies have increased more than normal over the last few months. We are consistently seeing increases of between 10 – 50% on Home & Motor policies.

A couple of reasons for this:

Natural disasters – recent floods and millions of dollars paid out in claims along the Murray River has resulted in some insurance companies not offering policies at all in certain areas or applying increases to existing policies.

Supply chain issues – it is costing more and taking longer to repair vehicles and property due to a lack of materials and trades. The average cost of a claim has increased due to these issues

What can you do?

Talk to your broker about a strategy to reduce your annual premium or minimize the increase. This can be done by increasing excesses and/or implementing a policy that provides a more basic level of cover for a lower premium.

For example, you may consider increasing a Home Insurance excess from $700 to $1,200 for the next 12 months if it provides you with an acceptable premium reduction. Or, using a Defined Events policy rather than an Accidental Damage policy for Home & Contents.

This can be reviewed each year with your broker as the insurance market is fluid and conditions and premiums do often change.

Contact the team at Provide Insurance for all your insurance needs.