We all have to fork out for insurance on a regular basis, which means that, if you’re searching for ways to save money and make your finances more efficient, this should be one of the first things you look at. Fortunately, there are quite a lot of options when it comes to cutting the cost of cover – below, I’ve collated my top tips for doing so. I hope they help you!
Obviously, some of the below don’t apply to every single kind of insurance, so you’ll need to use them where applicable. As an example, if you’re going on a skiing holiday you’ll probably need a more expensive policy than on a standard holiday, simply because you’ll be at greater risk of needing to use it – but you can’t avoid that unless you want to totally change the nature of your break.
1) Lower your risk
This tip is probably most applicable to things like home insurance and car insurance. Your premium is typically based on a few major factors, including the amount of cover you need and the level of risk you pose.
By taking steps like increasing the security of your car or home, you effectively lower your risk, which can cut down the amount you have to pay for your policy. Taking the example of home insurance, adding a NACOSS standard burglar alarm or opting for an electrical or wildfire defense coating can make your home more secure in the eyes of your insurer, as can installing approved locks to windows and doors.
2) Don’t overestimate
When arranging insurance, it is always tempting to overestimate things like our average car mileage or the worth of the contents in our house. I know I’m certainly guilty of this – I always want to make sure I don’t accidentally end up covered for too little!
The peril of doing this, though, is that you’ll end up paying over the odds for a level of cover you just don’t need. And, if you make the same mistake with all your insurance policies, it’s likely to end up costing you a significant sum.
3) Always give accurate information
Next on my list is ensuring the information you give your provider is accurate – even if you’re just entering your details into a comparison site for a quote. There are two main reasons for this.
The first is that it is only by giving accurate information that you will get a realistic idea of how much you can expect to pay with different companies. The second is that relaying incorrect details to your insurer can invalidate the policy you’ve purchased, meaning you might not be able to claim when you need to!
4) Check whether you’re eligible for benefits schemes
Most of us keep our eyes out for special offers on comparison sites and insurers’ websites, but I think it’s often easy to miss the savings opportunities that are right in front of us. For instance, certain jobs entitle you to benefits that can lower the amount you pay for cover.
A good example would be civil servants – or anyone who has worked in this kind of role before – as some members clubs offer discounts on car, home and travel insurance. Plus, civil service benefits like this can also be enjoyed by the family members of people in such positions – so don’t forget to check carefully if you’re entitled!
5) Could you save by switching to a new policy?
My final tip is to be prepared to switch to a brand new policy when your current plan comes up for renewal. Yes, this is more time-consuming than just automatically renewing, but the truth is that new customers often receive better rates, so it can be worth your while to switch.
If you use comparison sites to find the best deals, remember that they won’t feature every insurer and every deal – so use several and conduct your own research as well to get a comprehensive picture