How much could you save?
Because the Australian insurance industry is so competitive these days, insurers use multi-policy discounts to attract new customers and also to keep their existing customers from switching to another provider.
A form of loyalty discount and one of the biggest and best available, multi-policy discounts are a reward for holding more than one policy with the same insurer. And not only will they save you money, they will also simplify the process of managing your insurance portfolio and filing a claim if the need arises.
What multi-policy discounts are available?
Insurers currently offering multi-policy discounts for those who have a comprehensive car insurance policy with them include:
|APIA||15% discount if you combine home and contents insurance.|
|Aust Seniors||30% discount if you add home and contents insurance (first year only).|
|Bupa||10% discount on car insurance with your comprehensive health insurance.|
|GIO||10% discount if you add 2 or more eligible policies (home building, contents, landlord, motorcycle, caravan or boat insurance).|
|HBF||10% discount for HBF Health members who combine car and home insurance and a 14.5% discount if you add another eligible policy (home, health and travel insurance).|
|NRMA||Various discounts depending on the number of policies you hold and how long you have been a member.|
|Progressive Direct||Discount for bundling up to 5 cars on one policy.|
|RAA||10% discount for each of two additional eligible policies (home and contents, motorcycle, caravan and boat insurance).|
|RACQ||5% discount for each of two or more additional eligible policies (classic car, motorcycle, pet, home and contents, caravan and boat insurance).|
|RACT||A premium discount if you combine motor vehicle with home and contents insurance.|
|SGIC||Various discounts depending on the number of policies you hold and how long you have held them.|
|SGIO||Various discounts depending on the number of policies you hold and how long you have held them.|
|Shannons||Discounts for multiple vehicles and a 10% discount if you add home and contents insurance.|
|Suncorp||15% discount if you add home and contents and landlord insurance.|
How do multi-policy discounts work?
Competition is hot in Australia's insurance industry. This is good news for you as it means insurers are trying harder to get you to join them.
Multi-policy discounts are one example of insurers trying to get you to join their squad.
Basically, if you insurer many different policies with them (like car, home, travel, life or pet) then you can benefit from a discount. You save cash in your pocket, and the insurer benefits from you not switching providers. Sometimes it does help to be loyal!
What can I group together?
The most typical multi-policy discount offered is for car insurance paired with home insurance. As home insurance costs more than car insurance, you benefit from the saving you make on a more expensive premium and the insurer benefits from selling you a more expensive product.
Other multi-policy discounts typically offered with car insurance include vehicle-related policies such as caravan, trailer, motorcycle and boat insurance. Discounts are also often available for multiple cars which are garaged at the same address.
And because these are all insurance products you would probably have to purchase anyway, being able to group them together in this way means you benefit from cheaper overall cover.
How do I get a multi-policy discount?
The easiest way to get a multi-policy discount is to approach your existing insurer, or if they do not offer such discounts, to shop around and switch to an insurer that does.
Look for one that offers discounts for all the types of insurance you need and is offering a higher discount than its competitors. But make sure you are getting the same level of cover before you switch by comparing the product disclosure statements of your current and new policies.
Is it always better value?
How much you save with multi-policy discounts will depend on your insurer and on the types of policies you bundle together.
As a general rule, you will save more with a discount on a more costly product such as home insurance than you will with the same discount on a cheaper policy such as trailer insurance. Many insurers also offer larger discounts on more expensive products to encourage you to buy (i.e. 15% on home insurance compared with 10% on trailer insurance).
But as with all insurance purchases, it pays to shop around because if one insurer charges more for the same product than another, then any multi-policy discount they offer will only bring the cost down to the same price as its competitor. So look for value for money first and then factor in your multi-policy discount.
Car and home insurance
A common way to bundle your policies for a discount is purchasing a policy for your home, contents and car insurance combined – the essentials to ensure you're protected in an emergency.
Take a look at the insurers that provide home and car insurance bundles.
|Company||Car Insurance Product|
|When combined with Comprehensive car insurance, Budget Direct gives you a discount of up to 30% when combined with Home and/or Contents insurance.|
|Youi gives you a 20% discount on combined Comprehensive car insurance and Contents insurance. Discount only applies when the overnight address of the car matches the insured address of the Contents Insurance policy.|
|Receive a 15% rebate on your premium by holding two or more policies with ANZ a year, which includes Comprehensive car insurance and Home and Contents insurance.|
|Save 10% on each policy you hold with APIA, including Car Advantage – Comprehensive insurance and Home insurance policies.|
|With GIO, receive at 10% discount if you hold three or more eligible policies, including their Comprehensive, Platinum car insurance and Home Building, Contents insurance.|
|HBF provides a 10% discount on Comprehensive car and home insurance for HBF health members. Add a second policy and receive 14.5% off both.|
|NRMA Insurance gives a discount for Comprehensive car insurance in NSW, ACT, TAS, QLD and ACT and Home and Contents insurance based on the number of years you've been a customer with NRMA. Visit their website to calculate your savings.|
|Receive a 10% discount off each policy when you have three or more in the same name with RAA, including Comprehensive car insurance and Home and Contents insurance.|
|RACQ gives you 5% off each policy when you have three or more policies, including Comprehensive car insurance and Home and Contents insurance.|
|RACT gives Tasmanians premium discounts when combining Motor Vehicle insurance with Home & Contents insurance. Visit the RACT website for full details.|
|Save 10% if you have at least one other insurance policy under the same name with RACV, including Comprehensive, Complete Care care insurance and Home insurance.|
|For combined Comprehensive PLUS car insurance and Home and Contents insurance, your savings percentage changes depending on the time and amount of policies you have with SGIC. Check out the discount table on their website.|
|For combined Comprehensive PLUS car insurance and Home and Contents insurance, your savings percentage changes depending on the time and amount of policies you have. Check out the discount table on their website.|
|Receive 10% off your Home and Contents premium, plus multi-vehicle discounts when combined with Comprehensive car insurance.|
|Suncorp Insurance will give you a 15% discount when you combine three or more policies.|