How To Reduce Insurance Premiums 

Insurance comes in many forms; house, car, health and life, but with premiums ever on the rise, knowing how to reduce insurance premiums is key to keeping them affordable. We’ve all been there: a renewal letter arrives and yet again your premium has increased.

how to reduce insurance premium

How To Reduce Insurance Premiums

You consider shopping around, calling to negotiate or simply cancelling your policy. Before you attempt any of these (or give in to panic at the cost) learn how to reduce your insurance premiums in a few simple steps.   

In this article we will discuss:  

  • Factors that impact on insurance premiums, specifically health and life insurance.  
  • How to reduce health insurance costs 
  • How to reduce life insurance premiums  
  • How we can help to reduce insurance premiums 

Factors That Impact Insurance Premiums 

If you have ever purchased health or life insurance online or via an agent, you will no doubt have filled out a lengthy questionnaire. The basics will be covered such as your age, pre-existing health conditions, whether you’re a smoker, have children and so forth.  

These questionnaires are designed to capture a snapshot of who you are and how much of a potential liability you are from an insurance point of view. Someone who is a smoker or heavy drinker for instance is considered at higher risk of health complications or early death.

To counteract the higher risk of insuring this individual, a higher premium is levied. Sonow to the question at handhow to lower your insurance premiums? Quit smoking, reduce alcohol consumption and focus on better health.  

 The main factors that affect health or life insurance premiums are: 

  • Your age and gender. 
  • Your medical history (including that of your immediate relatives) and current health. 
  • The types of hobbies you enjoy. 
  • Whether you are a smoker or regularly consume alcohol. 
  • What you do for a job. 
  • Whether you have received an organ transplant. 
  • Your weight. 
  • In the case of health insurance, who else will also be included in the policy. 
  • Where you live.  

how to reduce your insurance premium

It may seem intrusive to provide all this information to an insurer, however, the more clarity you can provide, the more accurate your policy premiums will be.  

Failure to disclose information your insurer deems pertinent can lead to your policy being invalidated, something you may not discover until making a claim,   

How to Reduce Health Insurance Costs

Wondering how to reduce insurance premiums for health insurance? Consider the following: 

How to Lower Your Insurance: Become Single on Paper 

While it may be easier to have both yourself and your partner on the same policy, it can be more expensive. Splitting to single policies allows you to more accurately select the required coverage as individuals and avoid paying for things you do not need.  

How to Reduce Insurance: Tweak Your Policy 

Switching off things you do not need is one way to reduce insurance costs. For instance, orthodontics or pregnancy cover may not be pertinent to your immediate future so it makes sense not to be paying for this coverage. 

How to Lower Your Insurance Premium: Choose A Higher Excess 

Choosing to have a higher excess on your policy reduces your premium. This may not be suitable if you regularly claim items with an excess but can save you money if your health is uncomplicated.  

how to reduce health insurance cost

How to Reduce Life Insurance Premiums 

How to reduce insurance premiums on life and income protection differs to strategies for reducing health insurance premiums. You can: 

Check Your Super Fund Inclusions 

Setting up life insurance via your super means your premium is paid via your fund balance using pre-tax dollars. This is of great benefit for those times when cash flow is tight; it can also be cheaper than buying direct.  

Choose A Longer Wait  

Electing to have a longer wait period before you can make a claim should your income be affected will usually reduce your premium. Be sure to plan out how long you could manage without an income before choosing to do this.   

Reduce Your Death Benefit 

Check the benefit amount you are insured for and reduce it if it is higher than what would realistically be needed should the worst occur. A lowered benefit amount can dramatically decrease your premium.  

How to Reduce Insurance Premiums the Collins Mann Way

At Collins Mann, we understand that insurance and their policy details can feel like whole other language. We can show you how to reduce your insurance premiums across a range of policies. We help you shop, interpret and select or modify the right health or life insurance for your situation, taking the stress out of choosing the right policy and handling rising premiums.  

Our core focus is to help you have a life of choice without compromise, whether it be about your insurance or something else altogether. Our fully qualified financial advisors can help you secure the future you want through clear, carefully considered advice and a winning strategy.  

Contact us today on 07 3251 3200 and learn how to reduce insurance premiums 


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