How to be savvy with your insurance


The cost of living is rising, and people are looking for ways to save. That can often mean cutting back on things that used to be considered well worth the cost. Home Insurance is one of these essentials – but there are some things you may want to consider before reducing your coverage or switching to a cheaper policy.

Is cheaper automatically better?

Cost can sometimes be the only thing considered when choosing an insurance policy. But if you switch to a different policy based on price alone, you may be overlooking some key aspects. By considering overall value alongside the price, you can find the right balance – where affordability meets peace of mind.

A policy’s price is influenced by several factors, but one of the biggest is often its benefits – and a cheaper option may not include all the benefits you might expect. It pays to be savvy, which starts with knowing your needs. That way you know what to look for if you decide to shop around.

Explore AAMI Home and Contents Insurance

Look beyond the price tag

While it may be tempting to choose the cheapest option available, it’s important to understand the potential limitations of policies that seem like bargains. Dig a little deeper, as you might discover limitations, exclusions, and unexpected out-of-pocket costs that will present themselves when you may need assistance most.

The long and short of it: assess your insurance needs, compare coverage options, read the fine print (and read it again!) and only then choose the cover that meets your needs and budget.

How to be savvy

Consider paying annually to save

The way you pay for your home insurance can impact its price. With AAMI, it costs less to pay your premium annually instead of in monthly instalments. It is a larger up-front payment, but you will save in the long run. If your circumstances allow it, this may be worth thinking about.

Read your policy documents carefully

You don’t want to make an insurance claim, only to find that you aren’t covered in the way you thought. Get to know the ins and outs of whichever policies you’re considering. This also means you’ll be across exclusions that impact your policy, like damage caused by wear and tear.

When comparing, don’t just browse the website. Read the Product Disclosure Statement to see if the product is right for you. You can read AAMI’s policy documents here.

Don’t forget your excess

Your excess is the amount you pay towards the cost of your claim for each incident covered by your policy. With AAMI, you can choose to change how much this is within a provided range, and the amount you choose will impact your premium. A higher excess will reduce your premium, and vice versa.

While it’s tempting to increase your excess to lower your premium, carefully think about whether this makes sense for you and your budget. The cost can build up quickly if you need to make multiple excess payable claims. Consider choosing an excess that strikes the balance between affordability and practicality.

Learn how to compare based on value, not cost

Cost is usually the first thing examined, but as we’ve covered, it isn’t the only thing that determines the value of any given insurance policy. Compare the overall value of different polices, looking at the coverage provided and what else may benefit you. This could include:

  • automatic cover which is an optional extra for an additional cost elsewhere
  • the overall customer experience, from buying to updating to claiming, or
  • the reputation of the provider.

By considering these key factors, you can make savvy insurance choices that prioritise both your budget and your coverage needs. Remember to take your time and research thoroughly. You can read more on how to compare home insurance policies like a pro here.

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Insurance is issued by AAI Limited ABN 48 005 297 807 AFSL 230859 trading as AAMI. Read the relevant Product Disclosure Statement before buying this insurance. The Target Market Determination is also available.
This advice has been prepared without taking into account your particular objectives, financial situations or needs, so you should consider whether it is appropriate for you before acting on it.