Tips for Comparing Insurance Quotes Effectively
Price isn't everything. Here's what to check before you click buy.
Getting five quotes and picking the cheapest is a common and costly mistake. Price is one factor — but two policies at the same price can have wildly different coverage. Here's how to compare properly.
1. Compare the same level of cover
A $50/month comprehensive policy and a $35/month third-party policy aren't comparable — they cover different things. First decide what level of cover you need, then compare policies at that level.
2. Match the excess
A policy with a $250 excess will cost more than one with a $1,000 excess. When comparing premiums, hold the excess constant — or factor the difference into your analysis.
3. Read the exclusions, not just inclusions
Every policy lists what it covers. The fine print is in what it excludes. Common exclusions that catch people out: flood (vs. storm), certain dog breeds (pet insurance), pre-existing conditions (health, travel), modifications (car), and mould (home).
4. Check sub-limits
A home contents policy might cover $60,000 total but have a $2,000 sub-limit on portable electronics. If you own $8,000 worth of laptops and cameras, that's a significant gap.
5. Look at claims reputation
The true test of an insurer is how they handle claims. Check AFCA (Australian Financial Complaints Authority) complaint data, and read recent reviews on Google and ProductReview.com.au — specifically filtering for claims experiences.
The bottom line
The cheapest policy that actually pays your claim is better than the cheapest policy that doesn't. Compare coverage first, price second.
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