Find out how to save money on home insurance by taking a look at this fantastic article that covers all the bases when hunting for home insurance at a price that you can afford.
Are You Paying Too Much For Your Home Insurance?
Only last month I asked myself that question as I was trawling through what felt like the endless stream of bills that came flooding through my letter box. Coming across my home insurance renewal quote I was in for a real shock as the price had risen exponentially on the previous year.
Now there is no escaping the fact that home and contents insurance are a vital part of life, as unfortunately accidents do happen, but there are many ways that you can bring the cost down, as I soon discovered, leaving you extra cash in your pocket to spend on other things. Consider my top actionable tips for saving money on your home insurance this year, and see how much money you could save.
Do You Really Know How Much You Are Paying?
The first key to ensuring you get the cheapest home insurance possible is by being aware of exactly how much you are paying. I had fallen into the trap of receiving my insurance renewal letter every year and had gotten into the habit of barely even glancing at it. When I first took out the insurance I had found the best value for money quote available to me and I assumed, as I had never claimed on my home or contents insurance, that the company would be giving me a fair deal every year. How wrong was I? In fact, I was shocked to discover that my home insurance had more than doubled in cost in the 5 years since I had taken the policy out. So much for rewarding a loyal customer.
An article from BCC news highlights that my case is not an isolated one when it states that
loyal customers often pay much more than new ones for insurance’ and that ‘many customers use automatic renewal for home and car cover – with the premium often increasing every year.
Once you know exactly how much your renewal quote is it is time to start looking around to see if you could get your insurance cheaper elsewhere. There are a couple of very easy ways to do this; using the internet and by ringing around.
Shopping Online Can Save You a Fortune
Searching for cheaper insurance really couldn’t be easier these days and it is a wonder that so few people, including myself, bother to do it. By far the easiest way is by using online price comparison websites.
Advantages to using price comparison websites:
- Convenience: There is no denying it, being able to check whether you are getting the best deal on your home insurance from the comfort of your own home, or even on your lunch break at work is easy and convenient. It can take as little as 10 minutes to fill in your details online.
- Instant Quotes: Price comparison websites will give you almost instant quotes from a range of insurers on the market meaning that you don’t have to waste time ringing round each individual company giving them your details every time. Time is a precious commodity, so saving time is almost as important as saving money!
Disadvantages to using price comparison websites:
- Less Choice: It is worth bearing in mind that some insurance companies do not go through online comparison websites and so you could be missing out on some of the best deals.
- Hidden Assumptions: Whilst the majority of people manage to find cheaper quotes online, some people find that they are unable to get a quote at all or that their quote is unreasonably high. That is because online comparison websites make certain assumptions about people and their circumstances, and if you do not fall into these categories you could find yourself heavily penalised. If this is true in your case then you will find that ringing insurance companies directly will yield much better results.
If you find that online price comparison websites are not for you then do not despair. Pick up the phone and contact insurance brokers yourself. Most insurance companies have free to call numbers so this method does not need to cost you money. Ringing around may take a little more time than using the internet but it is guaranteed to save you money!
You May Have More Cover Than You Think
Consider what add-ons you need and which ones you don’t to make your insurance premium even cheaper. It is worth bearing in mind that you might have, for instance, legal cover with a different insurance policy or through your employment. So be careful not to double up when buying insurance.
The Guardian advises that –
Contents outside the home’ is one add-on worth buying. It insures your belongings against theft and has long been the cheapest way to insure your bicycles. Some insurers have bike add-ons for about £20 a year, while others include it in the main contents add-on.
When purchasing insurance make sure that you are only buying what you really need. It is important to remember that every claim you make on your home insurance is going to make your yearly premiums rise, even if you choose to switch insurers next year. So consider whether you really need to cover individual items, such as your mobile phones or laptops, because it may not be worth claiming on your insurance in the long run.
Look Out For Money Off Vouchers
Finally, search the internet for money off vouchers or codes to make your insurance premiums even cheaper.
One great tip is to use cash back websites, such as www.topcashback.co.uk, when purchasing your insurance. These cash back websites get paid a certain amount of commission for advertising other companies’ websites and this money is passed directly onto you! Before you even purchase your policy it is worth checking if these cash back websites have any deals on and could therefore save you even more money. All you need to do is sign up and then click onto the insurer’s website through the cash back website. It couldn’t be easier.
Tips That Can Save You Money on Your Home Insurance:
- Don’t just accept your renewal quote. Search for cheaper quotes using online price comparison websites
- Remove any unwanted or unnecessary insurance add-ons
- Accept a higher deductible. This can drastically reduce your premium, but remember to only add a deductible that you will be able to afford should you need to claim
- Only insure your contents for the value you need, as you could be paying more to insure what you don’t have
- Contact your existing insurance company directly to see if they are willing to beat your insurance quotes before you switch
By following the above tips I was able to save over 50% on my home insurance renewal quote. I was genuinely shocked at how much extra I had been paying each year. So don’t accept your insurance company’s renewal offer without first checking just how much you could save by following these top tips and by shopping around.