Buy the best policy at the best price
The easiest way to save money off your insurance policies is by comparing the market for the best deal.
While renewing your existing policy may seem like the easy option it’s rarely the cheapest. New customers very often get the best deals and discounted rates. So don’t automatically renew with your current insurer when your policy comes to an end. You can use these links to scour the market for the best possible new deal:
Remember that, with life insurance, your contract doesn't come to an end every year as it does with other types of insurance. However, you can still save money on your policy by shopping around for a cheaper deal. If you find something better, set up a new policy and cancel the old one. Just make sure you don't lose any valuable benefits by switching which aren't available on the new policy.
Pay in full, upfront
When choosing options for your renewal quote - or a brand new quote - an insurer may give you the option of paying in monthly instalments. However, if at all possible, pay the full amount upfront.
That's because you may be charged a hefty interest rate on monthly repayments (sometimes 30% APR or even more). If you don't have the cash to hand, consider paying on 0% purchases credit card. Just make sure you clear the balance before the interest-free period comes to an end.
Increase your excess
When you make a claim, the excess is the amount you have to shell out before your insurer chips in. If you agree to pay a higher (voluntary) excess, you could lower your overall premium. In the case of car insurance, for example, you could cut the cost of your cover by 10% or more. So when you're shopping around, check what difference your excess amount makes to the price.
Sounds obvious but make sure you’re paying for the right level of cover. Under insure and you risk some of your possessions not being covered, should the worst happen.
Conversely, many people over-insure by using the market value of their home as the rebuild value – they are not the same and you could end up paying for far more cover than you need (this rebuild value calculator can help).
Don't double up
Don't make the mistake of doubling up on cover and spending more than you need. For example, many of us buy extra insurance in-store to cover the loss, damage or theft of valuable items, like jewellery.
Millions of us already have personal possessions cover as part of our home insurance policies - meaning that these sort of items are already covered. To find out whether you're paying twice for insurance, read our next task: Don't double up on cover.