Cheap policies bought online ‘could leave you underinsured’ if you don’t do your research

BUYING policies online is growing in popularity, but “if you take insurance out blindly there’s no point being covered”.

Home and contents calculators can help determine the level of cover you need.

BUYING insurance online is growing in popularity, but consumers are being warned signing up to policies without talking to anyone could leave them underinsured.

Large discount incentives are being offered to consumers to sign up online but experts say it’s not always the best option.

LOWER POLICY COSTS: Join the Big Insurance Switch

An Insurance Council of Australia spokeswoman urges consumers not to focus solely on price when signing up to insurance policies as they run the risk of leaving themselves exposed to underinsurance.

“Shopping for insurance on price can be a risk for consumers,’’ she said.

“Cheap policies may not have the features and inclusions the policyholder may actually require.

“Home and contents calculators and household inventory checklists can help policyholders prevent underinsurance.”

Policy holders are urged to check up and review the sum insured on each policy every year to make sure they are correctly covered.

Comparison website Finder’s spokeswoman Michelle Hutchison says buying insurance online can be a good option but it pays to do plenty of research first.

“Make sure you get the most information you can before signing up to a policy, whether it’s online or on the phone,’’ she says.

“The biggest issue with buying any type of insurance is making sure the cover suits your needs. It’s often the case where you will be caught out when you haven’t purchased the right type of insurance for you.

“If you take insurance out blindly there’s no point being covered.”

THE BIG INSURANCE SWITCH

A new campaign, the Big Insurance Switch, launched this week aims to help you lower your living costs by tackling soaring home insurance premiums.

Research has found that home and contents insurance premiums have been growing at a much faster rate than wages — doubling in five years — yet many people take little notice of their policies, what they pay and what is covered. If you’re serious about getting ahead financially, it’s time to cut out the complacency.

You can join the campaign for lower insurance costs here. One Big Switch will negotiate with insurance providers and aims to use readers’ combined weight of numbers to get a good deal. So far more than 25,000 have joined the One Big Insurance Switch campaign.

It’s a free service and you are under no obligation to apply for any deal presented during the campaign.

News Corporation Australia will earn a commission for every person who successfully applies for an insurance policy generated by the campaign, so will One Big Switch.

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