Multi-policy insurance discounts

The Australian insurance industry is competitive, with many insurers offering multi-policy discounts as a reward for their loyalty. By holding more than one policy with the same insurer - a kind of bundled insurance package - you can enjoy lower premium and other discounts. However, some people can get better value by comparing and selecting policies from multiple insurers.

Which funds offer multi-policy discounts?

Fund	Multi-policy discount	Apply
	ahm members will get two months free pet insurance and can save 10% on their life & travel insurance. Members can also save up to 15% off car insurance or up to 30% off home and contents insurance from ahm Insurance when they join online.	More info
	HCF members save 15% on pet insurance.	Go to Site
	Medibank members can get 10% off on life, income protection, funeral and pet insurance. Then another 15% off on travel insurance.	Go to Site
	You can get a 10% discount on NIB travel insurance.
	Bupa members can get 10% off the cost of home insurance, car insurance, landlord insurance and pet insurance. Members can also save up to 15% on travel insurance.	More info
	RT Health partnered with Zurich to offer members access to Ezicover, Zurich's range of "do it yourself" online life insurance products.	More info

What are multi-policy discounts?

Multi-policy discounts are premium discounts that an insurer offers you when you hold multiple policies with them. Designed to encourage customer loyalty, these discounts allow you to enjoy substantial savings across a wide range of insurance policies when you hold two or more types of cover with the same insurance provider. In some cases, the size of the discount may also increase based on the number of policies you bundle together.

For example, let’s say you already hold health insurance with Insurer A and comprehensive car insurance cover with Insurer B. Because these policies are with separate insurers, you pay the full premium for each type of cover.

But as a way to encourage you to switch car insurance providers, Insurer A offers a multi-policy discount of 10% off the cost of its own comprehensive car insurance policy. By switching insurers and holding two policies with the one company, you can enjoy a significant saving.

And if you also choose to move your home and contents insurance over to the same insurer, the discount on your comprehensive car insurance rises to 25%. It’s a win-win situation for you as a consumer since you still have the essential insurance cover you need, but at a reduced cost compared to what you would normally pay.

What kind of insurance policies can you expect to get a discount on?

While the policies that are eligible for a discount vary from one insurer to the next, you can commonly expect to find multi-policy discounts offered on the following types of cover:

However, not all insurers that provide multiple cover types will offer multi-policy discounts. These insurers claim that no discounts are available because their policies are already as affordable as possible. It’s important to make sure the savings offered by a multi-policy discount provide good value for money.

How much can you expect to save?

The size of any multi-policy discount varies between insurance providers, so it’s best to contact your insurer to find out the details of any special offer. However, multi-policy premium discounts generally range from 5% up to 25%.

The size of the discount may also increase if you bundle more policies with the same insurer or if you buy cover online. Read the fine print for full information on the maximum discount available.

Pros and cons of multi-policy discounts

Pros

• Big savings. Multi-policy discounts allow you to keep more money in your pocket, providing premium savings of up to 25% per policy.
• Essential cover. Bundling policies doesn’t affect your ability to ensure that you still have all the important insurance cover you need.

• Easier to manage. When all of your essential insurance policies are with the same insurer, it can make it much easier to manage your policies and make claims.

Cons

• They limit your choice. The policy that offers discounted premiums may not necessarily offer the right cover for you.

• You still need to shop around. Just because a policy has discounted premiums doesn’t mean it’s the most affordable cover available, so make sure to compare your options and obtain quotes from multiple insurers.

What others types of loyalty bonuses are on offer?

Health insurers may provide the following special offers and bonuses to reward customers for their loyalty:

• Increasing benefits. Many insurers give you increased benefits on specific extras services when you maintain your membership for an extended period. Typically seen with services such as dental, physio, chiro and more, these rewards increase your benefit limit for each year that you retain your membership.
• Cover for out-of-pocket hospital expenses. Simply by paying your premiums, your health fund may allow you to earn reward points that you can use to pay for out-of-pocket hospital expenses that your policy does not cover.
• Discounted gym memberships. Membership in many health funds allows you to access cheaper memberships at partner gym and fitness chains.
• Discounts at partner retailers. Many funds also provide discounts and special offers with a wide range of partner retailers, allowing you to save on everything from sporting goods to movie tickets.
• Giveaways. Many health funds offer member-exclusive competitions to win electronic items or sporting goods.
• Referral bonuses. You may earn a gift card for referring a friend who signs up to become a member of your health fund.

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