BARTER FOR A BARGAIN
If you’ve ever been to a market in Bali or Vietnam you’ll know what it is to barter.
That monkey carving you think would look just right in the pool room might have a price tag of 500,000 rupiah but that’s not its real price.
No, its real price is what you’re prepared to pay for it and what the vendor will accept. As you turn to wander off, that 500,00 rupiah is suddenly very negotiable, and before you know it, you have a souvenir for half the price.
I take the same approach to all my insurances.
Sure, the insurance company sends out the renewal notice but I never just pay it. Here’s how my recent discussion over a $892 car insurance renewal went.
Me: “Hi Karen, I’ve received my renewal notice but I’m not sure I’m getting the best deal and am considering shopping around. Is there any wriggle room on the premium?” Karen: “Let me have a look at your policy.” Me: “Great, I’ve been loyal to you guys for 17 years and have my car, home, contents and CTP insurance with you so I really hope you can offer me a better deal.”
Karen taps away for 60 seconds and enquires about my day. Then she asks if my circumstances, address or driving history has changed.
No, no and no, I reply.
Within two minutes she’s come back with a better price of $752, which I promptly pay. It’s the fastest $140 I’ve ever made and the best thing is I do it every year.
But so many people don’t, which is why I tell everyone I know to bargain when it comes to insurances. So many companies offer their best deals to try to lure new customers, working on the notion that existing customers will automatically renew their policies without query.
I’ve been challenging my premiums for about six years and virtually every time I’ve had the amount reduced. One year I saved nearly $400 across all my insurances.
The best thing? That $400 went on flights to Bali. Win win!