We show you how to get better insurance cover for you and your family for less.
Most of us resent paying for something we hardly ever use; this is especially true for insurance. You buy policies to cover your home, your car, your health, your life and even your pets, all of which are necessary and wise precautions 'just in case' but unless you're careful the cost of being fully protected can really add up.
Without realising it most of us are paying over the odds for our insurance policies, however by following a few simple steps it may be possible for you to cut this cost considerably while potentially bettering the level of protection you have in place.
Why loyalty doesn't pay
It is so easy to simply tick the boxes and continue with your existing cover each time your renewal comes around. But while the huge number of insurance companies on the market can leave you feeling intimidated, shopping around will definitely be worth your while.
Internet comparison sites help to make this easier by clearly detailing the benefits of different policies in easy to understand best buy tables. This means that you can decide at a glance which provider is likely to be right for you.
Getting a few quotes allows you to compare the cost and level of cover offered against your renewal so that you can make sure you're getting the most for your money. What’s more, many insurance providers offer exclusive discounts and price beater guarantees online which help to drive down the cost of protection even further.
If you don’t use it, lose it
Most insurance policies are decorated with fancy add-ons and benefits that make the cover look more impressive but that aren't necessarily of any use. Often these simply bump up the cost without actually being of any real value to you at all. For this reason it's definitely worth reading through policy and quotation details carefully before you commit, taking the attitude that if you don't use it you shouldn't pay for it.
For instance, if you have legal protection with your home insurance don't double cover yourself by agreeing to it on your life insurance policy too and if you're unlikely to need a courtesy car don't opt to include it. The same goes for payment protection insurance; if you don’t feel you need this reassurance then why fork out for it?
By stripping out unnecessary extras but keeping benefits that are going to be useful, you should be able to negotiate down the cost of quality cover and get better protection for your money.
Why it pays to save
Most providers like you to pay for your insurance outright as this removes the risk of you defaulting or cancelling the policy mid term. Because of this many treat monthly direct debit arrangements as repayments on a loan and charge a surprisingly high rate of interest for the privilege. So, if you’re not careful this could increase the cost of your insurance considerably. For this reason, if you can afford to it's much better to pay for your insurance upfront.
There are some companies that don't charge for monthly repayments and use this as a big selling point, however caution is still needed. Before you get sucked in by their clever marketing ploys remember that just because they don’t add an additional charge for monthly payments it doesn’t mean that they’ll necessarily be able to provide you with the cheapest overall quote.
For this reason if you’d prefer to make monthly payments it’s a good idea to compare the insurance offerings and monthly price of these companies alongside others to see which will provide you with the best cover for the least amount of cash.
Quality or cost?
When shopping around it is important to remember than scrimping on insurance rarely pays. While you don't want to be overinsured and paying for cover that you don't need, it's important not to underinsure yourself so that you're left wanting in the event of a claim just for the sake of a few pounds.
This is why it is so important to consider your cover needs carefully before you even begin to look at prices. By taking some time to assess your insurance requirements (and not just going with what you're currently insured for) you will be able to protect yourself with policies that really provide you with 'value for money' and 'peace of mind'.
So, when choosing insurance regardless of what it's protecting, make sure you shop around, comparing quotes and cover as this way you'll be sure to get the best deal. It’s worth your while as for 10 minutes work you could save yourself up to *£400 a year!
*Based on combination of savings on shopping around for travel, car and home insurance…..
Travel – Joint world wide cover including baggage and cancellation costs covered for a couple aged 31 and 36. Cheapest quote possible £39.75 including 5000000 Medical cover, £2000000 liability, £3000 cancellation and £1500 baggage, compared to £94.04 for exactly same level of cover = £54.29 saving.
Home insurance – Based on quote for a £175,000 3 bed semi in Cornwall built circa 1970 with a fitted burglar alarm and 3 fine alarms, £40000 contents, £250 excess and 3 years no claims discount. Cheapest quote possible £120.75 compared to equivalent direct quote £348.48. Savings of £227.73.
Car insurance – Based on quote for 31 & 36 year old couple with 5 years no claims discount each to be insured on a Ford Focus used for social and commuting purposes and kept on the drive at night. Cheapest possible quote with better level of cover was = £149.92 compared to the most costly quote £281.17 which had higher excess and more basic level of cover included. Savings = £131.25
All together this gives just over £400 savings a year.
