Have you ever asked your insurer for a better price?
Almost nobody does, and about a third of the people who do get one. It is one phone call and it does not reduce your cover.
31%
of customers who contacted their insurer and asked got a lower premium without reducing their cover, in ASIC's report
What this is
Insurers price renewals on the assumption you will not check, and ASIC's research says they are usually right: 67 per cent of customers renewed with the same insurer, and many never contacted them or compared a quote first. The asking is what moves the number. It is not a negotiation you need to be good at, because the discount already exists in their system for customers who sound like they might leave.
Does it apply to you?
- Anyone whose renewal notice has arrived with a higher number on it
- Anyone paying monthly rather than annually
- Anyone who has been with the same insurer for years without checking
How to do it
- Find your renewal notice and last year's premium. The rise is the number to quote back.
- Get one or two quotes elsewhere first, so you are asking from a position of knowing.
- Ring your insurer, say you are comparing, and ask for a better price on the same cover. Ask them to note that you do not want the cover reduced to get there.
- Ask what paying annually instead of monthly saves. ASIC's report found instalments can cost 10 to 20 per cent more over the year.
Where people lose the money
Letting it auto-renew because the rise looks small.
The rise compounds every year you do not look. Compare it to what you paid two years ago, not last year.
Accepting a lower price that quietly cut your cover.
Say explicitly that the cover must stay the same, and check the product disclosure statement against the old one.
Paying by instalments for convenience.
ASIC found it can cost 10 to 20 per cent more over a year. If cash flow allows, annual is the cheaper option.
Questions
Does asking hurt my policy or my record?
No. Asking your own insurer for a better price is an ordinary customer request. It does not affect your claims history or your no-claim bonus.
What exactly do I say?
That your renewal has gone up, that you have compared quotes, and that you would like a better price on the same cover. Being specific that the cover should not change is the part people forget.
Is it worth switching instead?
Sometimes. Weigh the new premium against any no-claim bonus and benefits you would lose, and check the new policy covers the same things. Moneysmart's page sets out what to compare.
Does this apply to home insurance too?
The same levers apply: excess, annual versus instalments, bundling, and asking. Moneysmart covers home and contents separately.
Where these numbers come from
- Moneysmart (ASIC), How to save money on car insurance · read 2026-09-23
Last gone over 2026-09-23. Figures change; the link above is always the current one.
Published by Income Lab, Melbourne. Responsible for this page: Jarred Krowitz.