The embarrassingly simple way I saved $779 on my contents insurance

I literally just… compared and switched. I'm kicking myself for not doing it years ago.

You can almost always find a better deal somewhere else. Especially on expenses that just auto-renew each year.

Like my home insurance policy.

I ignored my home insurance policy for years, but the auto-renewal date was approaching once again. And I was looking at paying $1,061 for the year, just for contents cover.

This felt way too high to me. So I shopped around, found a cheaper policy with an online discount, got more cover than I had before and saved $779 a year.

Here's what I did.

1. I took another look at my cover level. I was covered for under $30,000 worth of contents cover. That's not much, especially after years of high inflation.
2. I used a couple of online calculators to estimate my cover level. I upped it to $35,000. That's still not much, but we are a fairly minimalist household.
3. I compared contents cover on Finder. I found a policy with a high Finder Score and an online discount.
4. I hit "Get a quote" and filled in my details. It took less than ten minutes, and with a discount applied my new policy cost me $282 annually. With more cover than my old one.
5. I cancelled my old policy. This was the hardest part, and took around 20 minutes on the phone. The very friendly specialist tried to get me a better quote, but it was nowhere near as low. I made sure to cancel the policy on a date that lined up perfectly with my new policy starting.

Why I'm kicking myself for not switching sooner

While "switch and save" is the Finder mantra, I'll admit I don't review and switch every single utility provider, insurer and financial product each year.

I try not to dwell on the past, mistakes made, opportunities lost. But I've had this insurance policy for 5 years!

"Home insurance premiums have surged in recent years due to a mix of higher construction costs and more frequent extreme weather events," says Finder's insurance expert Ceyda Erem.

"Switching insurers is one of the simplest ways Australians can take back control of their household budgets."

Who knows how much I've lost by overpaying for contents insurance in that time. Thousands of dollars, certainly.

My experience highlights a couple of things every Australian needs to understand about insurance:

• Home insurance costs have risen massively in the last few years. 69% of Australians have had premiums increase, according to Finder research. Premiums have increased by as much as 50% over the past 5 years.
• The loyalty tax is real. I was with one of Australia's cheapest and most popular insurers. I thought I was getting a good deal. And I was: 5 years ago! But once you're signed up, you'll end up paying more over the years.
• Auto-renewal is not your friend. When you get that email about the upcoming renewal, save it, make a note in your calendar ahead of time and start comparing.
• Your old insurer will cut you a deal. They don't want to lose you. They more or less immediately knocked $300 off my premiums. But it still wasn't enough. It might be for you, so try calling your insurance company.
• Make sure you're paying annual premiums, especially if you do auto-renew. My old insurer sneakily moved me from annual premium payments to monthly payments. This costs you a bit more each month!

And when you think about how little time switching actually takes (less than an hour for me, including the cancellation call), it's a very valuable use of your time.