Ways to Save on House Insurance – but Don’t Cut Back
With the recession many people have cut back on their insurance but there are ways to save money on insurance without leaving you open to huge bills.
People tend to look at easy ways to save money during a recession and insurance is often seen as a luxury especially if some people have not made a claim in 20 years on their contents insurance.
A recent YouGov survey found that already 13% of people have cut their insurance costs and a further 26% are looking to do the same but this may mean that people haven’t got the right level of cover when they will most need it.
For example contents insurance covers you for accidental damage (say from children playing and smashing your £1,500 plasma TV) and from storm and water damage (for example from a burst pipe in the loft when the first frosts appear) so although it’s a good idea to shop around for the cheapest house contents insurance to get the best deal it may not be wise to delete your cover altogether.
There are some ways in which to reduce your premiums without have to give up essential cover and these include:
Not taking out buildings and contents insurance from your mortgage broker as these are likely to be the most expensive in the market place and may provide you with cover you simply don’t need. It’s best to look at price comparison sites or visit many of the well know insurance companies to get quotes before you buy. We have found the supermarkets to be excellent value and most offer “new customers only” discounts where as an existing customer you won’t get that discount so you may actually need to change your insurer each year in any case – it’s just the way the market works as there is no or limited loyalty in the insurance game.
Don’t buy buildings and contents insurance from the same company as research has shown that you should shop around for both products and probably get them from different companies.
Don’t be lured by the offer of free contents insurance as the cover may not be adequate and the additional premiums to cover expensive items such as engagement rings will be higher especially when looking at house contents insurance policies so check the cover you are being provided with first and all the excess amounts you may be required to pay in the event of any claim you need to make.
Be careful with companies offering you the opportunity to spread the cost of your policy over 12 monthly payments as the APR or interest rate insurers offer you can be as high as 40% – in these cases it would be better putting in on a credit card as most APRs are in the region of 16% – check what they are offering you first.
Many companies offer discounts for security features in your home such as locks on windows and alarm systems installed so ensure you tick all the appropriate boxes when you are applying for any quotes as these small things can reduce a premium quite substantially.
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