- Tell the truth
It’s really not worth leaving out details of an old medical condition or an activity you might be doing to save a few extra dollars. Insurance companies take the time to ensure your claim is genuine and that you were truthful at the time of application.
- Read the important stuff
You might not read ten different product disclosure statements cover to cover, but at the very least read through the exclusions and cover benefits section, so you know what is and isn’t covered. It’s also worth checking out the claims section, so you know what you need to provide and who to contact in the event of a claim.
- Know the excess you will be charged
Excess charges can vary significantly between insurers and will generally range between $50 and $250. You are charged an excess for each claim you make under the policy.
- Want to avoid the excess altogether?
Specific policies may offer an excess buyout, commonly known as an excess eliminator, which gives you the opportunity of paying a flat fee when you purchase the policy, so you no longer have to pay an excess.
- Know what will be paid for the loss of valuable items
Most policies have a sub-limit for individual items, such as $500 per item. If you are taking out additional cover for expensive items, make sure you know the maximum amount your insurer pays for multiple items in the event of a claim.
- Keep an eye out for discounts
Competition between insurers for your business means there are some chances to lock down great savings and bonus gifts.