Like everything else in this current cost of living crisis, insurance costs are on the rise. Why not read our tips on how to reduce household insurance premiums now.
Consumer champions Which? have produced 10 top tips on saving money including advice on avoiding unnecessary add-ons and shopping around.
1. Switch provider and save up to £120.
If the end of your contract is looming, it’s a great time to see if you could save by switching providers. Compare the Market says the cheapest car insurance premiums quoted to drivers rose by £42 in the first quarter of this year, reaching an average of £568. The price comparison site claims drivers could save up to £120 by shopping around for a better deal.
2. Turn off auto-renew.
Drivers who allow car insurance policies to automatically renew pay an average £49 a year more than those who switch, according to figures from MoneySuperMarket. If you’re planning to switch, contact your provider in advance to avoid being charged twice.
3. Check the insurers that aren’t on price comparison websites.
Some insurers don’t feature on all comparison sites. For example, products from Direct Line and NFU Mutual are only available direct.
4. Be realistic about your excess.
Setting the right excess is a balancing act. A higher excess might lower your premium but setting it too high might make claiming too expensive. For example, a customer making a claim on their car insurance will need to pay both a compulsory and voluntary excess. If your compulsory excess is £250 and voluntary excess is £500, you’d need to pay £750 when claiming – a cost that may prove prohibitive.
5. Improve your home security.
Most insurers require homes to have a minimum level of security. Before looking for a policy, consider improving your home security by adding deadlocks to external doors and locks on accessible windows. You might be able to get even better deals by installing a burglar alarm or five-lever mortice deadlock.
6. Choose the right job title.
Job titles can affect the cost of car insurance. When looking for a policy, you should check the available options before entering your occupation. You must ensure the occupation you choose is an accurate description of your circumstances – misrepresentation can lead to insurers declining to pay claims or even cancelling your policy.
7. Haggle to save £50.
If you’d prefer to stay with your current provider, haggle to get a better deal. One simple method is to use cheaper insurance deals you’ve found elsewhere as leverage with your existing provider.
8. Reconsider add-ons and save £50.
Car insurance add-ons might add as much as £50 or more to your premium. Common add-ons can include legal expenses insurance, personal accident cover, breakdown cover, and key cover. You might already have breakdown cover included with a bank account while key cover is included in some home insurance policies.
9. Consider getting a black box policy.
Also known as telematics, these policies calculate premiums based on the way motorists drive. A report by Compare the Market found telematics quotes are cheaper than standard car insurance for 78% of drivers aged between 17 and 20 and 69% of those aged between 21 and 24. Young drivers often face sky-high premiums, so it’s worth comparing quotes to see if you could make a saving.
10. Don’t pay for buildings insurance if you’re renting.
If you’re renting a home, buildings insurance is your landlord’s responsibility. This means you’ll only need to purchase contents insurance to protect your possessions. If you’re a leaseholder, buildings insurance might be covered in your service charge.