Approximately half of that was reducing our health insurance from the top hospital cover to the mid-range one that doesn't include obstetrics/pregnancy related items. I should have done this a year ago as soon as my (third and final) baby was born. But it didn't even cross my mind! At least we have used the policy a lot over the last year so I don't feel too ripped off. And I loved having my baby in a private hospital!
On that note, I read an article a few years ago about hospital extras cover, saying that insurance companies make most of their money from the extras cover and that for most people paying for extras cover doesn't make financial sense. Of course it depends on your circumstances, but I did the sums back then and we got rid of our extras cover (saving us a conservative $250/year). However, I have lots of friends who say they definitely get more back from their cover than they pay (they are probably good and go to the dentist more than me!). So if you pay for extras cover each month, it's a good idea to assess if you are getting your money's worth.
The rest of the savings came by switching our car and house contents insurance (we rent) to another company. We'd been with AAMI for 7 years and I hadn't been bothered to check if we were getting a good deal or not. I think the lesson here is don't be lazy like me! When you get your annual renewal put aside an evening or afternoon (many insurance companies are open in the evenings and weekends) and do some comparisons. Yes, it is extremely time consuming (I was on the phone to Youi for nearly an hour sorting out both policies, as well as to AAMI seeing if they could do better and finally cancelling the policies) and rather boring, but I now feel very proud of myself! You can start with comparison websites but unfortunately you need to talk to people to get your insurance finalised.
So here is a breakdown of our savings. Hopefully it inspires you to pull out your policies and see if you can get a better deal!
Car insurance: comprehensive cover on a Volvo worth around $6000
- Was $120.80/month or $1449.60/year with AAMI (we paid monthly which increased the premium significantly).
- Now $886.16/year with Youi.
- Saving of $563.44/year
- Was $839.20/year with AAMI. Seven years ago when we moved in this was good value as I shopped around.
- Now $335.90/year with Youi.
- Saving of $503.30/year
- Was $302.40/month. This was Premium hospital with HCF, without extras. I wanted pregnancy to be covered so I could have my third child in a private hospital.
- Now $225.55/month. This is Mid hospital with HCF, as we no longer need obstetrics.
- Saving of $922.20/year
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