Negotiating lower home and contents insurance

Negotiating lower home and contents insurance is a smart way to manage your household budget without compromising your coverage. Insurers often price for inertia — meaning loyal customers are frequently charged more than new ones. Here’s a professional, step-by-step guide to help you reduce your premiums: 

1. Review and Understand Your Policy 

Before negotiating: 

• Check current premiums, excess, and inclusions. 

• Understand the insured values (home rebuild cost and contents value). 

• Ensure you're not overinsured (which inflates premiums) or underinsured (which increases risk). 

2. Shop Around Annually 

Use comparison websites (e.g., Compare the Market, Finder, iSelect) or consult an insurance broker to compare your policy with competitors. Collect 2–3 comparable quotes to use as leverage. 

Tip: Even if you prefer your current insurer, competitor pricing gives you negotiation power. 

3. Call Your Current Insurer — Don’t Just Renew 

Speak directly to the retention or customer loyalty team (not just frontline support) and say: 

• You're reviewing your options due to a recent premium increase. 

• You've received competitive quotes from other providers. 

• Ask if they can match or beat the price or offer a loyalty discount. 

4. Increase Your Excess 

Raising your voluntary excess (e.g., from $500 to $1,000) can substantially lower premiums. Just ensure you can comfortably afford the excess in the event of a claim. 

5. Bundle Your Policies 

Insurers often offer 10–15% multi-policy discounts when you combine home, contents, car, and landlord insurance. Ask if bundling with your car or investment property can unlock further discounts. 

6. Ask About Specific Discounts 

Check eligibility for: 

• Loyalty discounts 

• No-claims bonus 

• Security discounts (alarms, deadlocks, CCTV) 

• Retiree or pensioner discounts 

• Online purchase or direct debit discounts 

7. Update Your Home and Contents Value 

Ensure your cover reflects actual replacement values: 

• For home: Get an online building replacement estimate using Cordell or insurer tools. 

• For contents: Inventory key items (furniture, electronics, jewellery) to avoid overestimation. 

8. Remove Unnecessary Add-Ons 

Optional extras (accidental damage, portable valuables, flood cover) can add cost. Remove or adjust based on your risk appetite and actual needs. 

9. Maintain a Claims-Free Record 

A clean claims history improves your risk profile and strengthens your negotiation position. Only claim when necessary to preserve your no-claims bonus. 

10. Document the Conversation 

When a better deal is offered, ask for it in writing or via updated policy documents. If they won’t budge, switch providers — but ensure a seamless transition without a coverage gap. 

Conclusion 

Home and contents insurance isn’t a “set and forget” item — it should be reviewed annually like any other major household cost. Taking a proactive, informed approach can save you hundreds of dollars per year while maintaining peace of mind. 

If you'd like help assessing your insurance needs and cost-effectiveness as part of your broader financial strategy, I'm here to assist.