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Aussies double down on insurance, and may pay the price

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Personal insurances such as car, travel, health and home and contents are necessary, but a leading insurance comparison service believes many Australians are paying unnecessary premiums by unknowingly insuring the same risk twice.

Comparethemarket.com.au has revealed that many Aussies could be over-insured after comparing the fine print on average home and contents policies against travel, health and car policies, as well as complimentary insurance provided by credit cards.

Abigail Koch, spokesperson for comparethemarket.com.au says, “Our analysis highlights that often two or more insurance policies cover the same risks, and when this happens, the ‘contribution clauses’ kick in. This means, if cover is provided by another insurance product and a claim is made, each respective insurer would only pay their share of the claim, or sometimes not at all.

“Insuring the same risk twice doesn’t mean double the benefit or double the payout. Over-insuring could complicate the claims procedure and result in paying more at renewal time should you make a claim. It is really important to be strategic with your insurance, read the fine print and double check the details to know what is and isn’t covered.”

Comparethemarket.com.au also highlights the possible sources of double cover, which includes insurance policy basics, optional add-ons, and complimentary insurance that comes with credit cards.

Comparethemarket.com.au reveals the cover you need, and the cover you don’t:

For example, if your comprehensive international travel insurance covers rental car insurance excess for international trips up to the value of $4000, and you take out the rental car excess reduction option (which is usually a per day payment), then you’re paying extra for something that you’re already covered for. In this case, if you’re taking out the international travel insurance anyway, then you can save money by not paying the excess reduction to the car rental company, and still be covered.

For example, a home and contents ‘extras’ cover policy can cover your personal effects for up to $10,000 for all items if you take them overseas.  If you then take out comprehensive international travel insurance, then you’re paying extra for something that you’re already covered for. In this case, if you’re taking out the home and content ‘extras’ policy anyway, then you can save money by not paying the additional comprehensive international travel insurance, and still be covered.

 

For interviews and more information, please contact: Phemmie Wilkinson | 02 9279 3330 | e: pwilkinson@theideassuite.com.au 

About comparethemarket.com.au

Comparethemarket.com.au is an online comparison service that takes the hard work out of shopping around. We help Australians to quickly and easily compare and buy products from a wide range of providers. Our easy-to-use comparison tool enables consumers to find a product that best suits their needs and their back pocket. We’re also in the business of comparing personal finance products, utilities and can help find the lowest fuel prices in your area. Whether it’s car, health or home & contents insurance, we provide a completely free service, that empowers Australians to make buying decisions with greater trust, knowledge and savings. We’ve got your back, simples.

 

[1] Complimentary credit card travel insurance is often available through the premium cards only, and is limited for a maximum of six months.

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