PREMIUM HIKES

Insurance? Do you have some? Heaven help you if you don't and your house decides to spontaneously combust. Insurance is like a superhero cape for your wallet, shielding you from life's unexpected disasters and financial nightmares. It's your trusty sidekick in managing risks and keeping your bank account intact when the universe throws a curveball. So, yes it's important. I get it.

But let's dive into the more baffling side of insurance: the annual premium hike. Picture this: I recently got my renewal quote for Home and Contents insurance. Did the insurer come by to see if I'd turned my house into a luxury mansion overnight or filled it with priceless artifacts? Nope. They just slapped an extra percentage on top of last year's insured amount, magically inflating the value of my home by a whopping $435,000. My contents, which I'm pretty sure have been devalued by wear and tear and being one year older, somehow increased in value by $7,000. Seriously, who are they kidding?

To keep this insurance party going for another year, they want an extra $550 from me. So,being the tight-arse that I am and not one to take such daylight robbery lying down, I embarked on a quest for truth. I shopped around, got quotes from other insurers, and discovered the sneaky tactics these companies use to get back their money. For instance, I found a couple of cheaper quotes. But then I mentioned my small motor burnout claim from a couple of years ago, and voilà, up went the price! It was as if they were saying, "Oh, you made us pay out before? Time to pay us back... with interest!" Ah ha! That's how they get you. If you make a claim one year, the next year your quote goes up by the amount they paid out to you. Clever!!

And don't get me started on loyalty—or rather, the lack thereof. Being the curious (and thrifty) person I am, I approached my current insurer as a "new customer" to see what they'd offer. To my horror (but not surprise), they dangled a shiny 30% discount in front of my newbie persona. When I confronted them, the consultant basically shrugged, admitting they’re driving loyal customers away. Why? Because jumping ship to another insurer annually to grab a new customer discount has become a bizarre sport in the insurance world. Ridiculous. There is no reward for being a loyal customer any more.

I've been lucky, I admit. I haven't had to deal with major insurance claims like rebuilding an entire house after a fire, flood or even a cyclone. My complaints above would probably pale into insignificance in those cases. All I can say is that these unfair charges are a constant annoyance in our 'cost of living crisis' and even more so for self-funded retirees who don't get the tax concessions handed out by the government, nor the pension increases. But that's fodder for another gripe.

So, next time you see your insurance premium creeping up, just remember: behind every baffling increase is a carefully orchestrated scheme and we just have to suck it up because the insurance companies are all in it together. There is no escaping it.