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Best Way to save Money on Insurance

Money Saving

is there any good tips on how to save money on insurances. they just go up every year and it is one of those that you pay for but seldom get anything back. but you can't not have it either

mmokane24
2 years ago
What do you think of this?
MrsCraig
MrsCraig2 years ago

We shop around to get the best deal and change insurers each year. There isn't really anything else that you can do to reduce it as far as I know.

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Yahya
Yahya2 years ago

What insurance? Car?

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MrsCraig
MrsCraig2 years ago

Yahya car and house. We look to find the best deal, then phone who we are with to see if they can give us a better deal and if it is better then we stay with them, if not we swap.

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Yahya
Yahya2 years ago

MrsCraig Most people over insure the house because the "rebuild value" question they go for "market value" rather then how much it would cost to "rebuild" the house. Use this link for a more accurate quote on rebuild https://abi.bcis.co.uk/

Once you've found best deal via comparison sites, ring your insurer and haggle

Purchase home insurance via Topcashback or Quidco as anything from £20 to £80 on offer as cashback.

3 Weeks before it expires usually best time to buy.

Car there is too many variables to list to reduce premium but again cashback is on offer via above sites and haggling. Get quotes via comparison sites first. NCD (No Claims) makes a big difference, adding a responsible driver who may drive the car once a year or never can reduce premium.

2 cars, 2 people? use a broker called A Plan Wimbledon to do the legwork of finding best policy. NCD you can only use on one car but these brokers use something called "mirror NCD" on the 2nd car

Hope this helps

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GlitchHunter
GlitchHunter2 years ago

Use the comparison sites and change your provider every time. You can get it to be around the same price every year even with rises.

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davidstockport
davidstockport2 years ago

I disagree with changing provider every time - I only change if existing insurers are not able to beat the lowest price (I don't tell them what it is) I have been quoted elsewhere. This year I paid LESS than last year.

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davidstockport
davidstockport2 years ago

HAGGLE - I phoned my home insurers to cancel the auto renewal last month, when asked why I said I'd found a better price - they asked could they see if they could do better I told them they'd have to beat last years price to get anywhere near... THEY DID !

Never mention the better price you've obtained and never be aggressive or rude.

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Johnny
Johnny2 years ago

Use a Comparison Site like https://www.moneysupermarket.com/home-insurance/

But before you start searching for quotes, do a little bit of homework...

With BUILDINGS INSURANCE, don't over insure!

You should only be insuring for the ‘re-build cost’ i.e. what it would cost to completely rebuild your home if it was destroyed beyond repair. This cost is usually much lower than your home's sale price or market value.

Basing your policy on your home’s rebuild cost stops you from over-insuring and paying higher premiums than necessary.

Use an online tool like this one to calculate what your rebuild cost should be:

https://abi.bcis.co.uk/calculator/calculator.aspx

It’s then worth thinking about what amount of Excess you feel comfortable with. An excess is the first amount payable by you in the event of a loss, and is the uninsured portion of your loss, so if you submit a claim you'll have to pay the excess.

The higher you set the excess the lower your insurance premium will be. For example, when getting quotes online, trying setting your excess at £0, at £500, and at £1,000 and see what difference it makes to the annual premium you'll pay.

Basically if you set a high excess it means you probably won’t claim for small problems costing you say less than £500 to fix (like a burst pipe), but will still have insurance you can rely on for the big problems like a house fire.

With CONTENTS INSURANCE the same principle applies - the higher your Excess the lower your premium will be.

Lastly consider buying Buildings and Contents Insurance together as a bundle, that can often reduce your total premium too.

For TRAVEL INSURANCE if you travel frequently get an annual policy – but only for the regions you will actually travel to – if you’re not going to North America for example an annual Worldwide policy (excluding North America) will often be cheaper. Again it's a case of don't over-insure and don't pay for stuff (or regions) you don't need.

Johnny😊

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davidstockport
davidstockport2 years ago

It's worth mentioning that even if any claim is above the excess it's very often better to absorb it and not to claim. Any claim will usually increase your premium for many years and not allow you to get a better deal elsewhere - insurance claims, are unless it's really serious, best avoided.

I don't pay for accidental damage on my home insurance because I know it's very, very unlikely I'd ever make a claim.

This principle applies to most forms of insurance,

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mmokane24
mmokane24
Original Poster
2 years ago

thanks everyone. some great tips here. I will try them all I think and see how I get on. I never thought of asking my current insurer to match the price

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davidstockport
davidstockport2 years ago

No! No! No! You don't ask them to match the price you tell them you've got a lower price and let them beat it - never reveal your lower price. They'll know what the lowest price could be and usually beat it. (They've got computers too).

Don't try to bluff them always search out a lower price before you contact them. Then if they don't try to beat it you say "Bye Bye might see you next year!" (then wait a few seconds before hanging up)

This year my home insurers beat the best price I'd found by EXACTLY (to the penny) by £5 - it was less than they'd quoted me last year.

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zerocenturyzero
zerocenturyzero2 years ago

The Pass Plus scheme helps lower your car insurance.

To get a Pass Plus certificate, students must complete at least six hours of training with a Pass Plus registered approved driving instructor. The cost is usually less than £200.

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