Baby boomers could save hundreds of dollars each year on insurance

The loyalty of Aussie baby boomers is coming back to bite them, with many potentially throwing hundreds of dollars down the drain each year by staying with the same insurance provider.

Instead of shopping around for the best deal, a whopping 43 per cent of those aged 65-plus have stayed with the same home and contents insurer for more than a decade, a new Compare the Market report revealed.

Even more concerning is the fact that 76 per cent have noticed an increase in the costs of their insurance since last year, but still haven’t searched for a better price. So why do they choose to remain loyal when they could be saving a bucket load to put towards their retirement plans?

According to the study, the main reason (33 per cent) is that they don’t think they’d be able to find a cheaper policy. Meanwhile, 28 per cent stayed out of convenience and a further 30 per cent said they have multiple policies and loyalty rewards with their current insurer.

Interestingly, 61 per cent claimed they’d be motivated to change with just a $100 or less premium increase.

With that in mind, Rod Attrill, finance expert at Compare the Market, said it’s time for Aussies to explore other options to see if they could lower their premiums with a different provider.

“After 10 years, your insurance may no longer offer what you need, especially in terms of your back-pocket,” he said. “With two-thirds (66 per cent) of Australians owning a home, it’s more important than ever to begin evaluating whether your policy is up to scratch and fits in with your current lifestyle.”

The release of the data comes as changes are made to the way New South Wales residents can view their insurance details. Residents will now be able to see how much they’re paying for home and contents insurance year on year, giving them the opportunity to see how much prices have changed and if it’s time to shop around for a better deal.

Attrill has called for other states and territories to follow NSW’s lead by enforcing the changes as soon as possible. He said it’s another helpful tool that can be used when comparing insurance deals.

“Aussies should check their policy at least annually and review prices to better understand if they have the right level of cover in the event that something should happen to their property or valuables,” Attrill said.

“For example, if homeowners have recently upgraded their furnishings or purchased new pieces of technology or jewellery, they might need to increase their contents insurance value to help ensure their home is more accurately protected.”