We all need insurance. Whether you want to insure your possessions, your life or your car (not only is it a legal requirement it can save you a lot of money in the case of an accident claim being made against you). But while insurance is often a necessary requirement, it doesn’t automatically follow that you should have to pay over the odds for it.
Here are a few tips to help you save a little money on your insurance.
Though there are two types of home insurance (known as buildings and contents)that can be bought as separate deals, it can be wiser to buy them as a joint policy from one source. There are some financially enticing deals out there. Meanwhile, many insurers offer reduced rates if you have particular safety and security elements in place. These elements could include measures to reduce theft risk like fitting a burglar alarm and joining a Neighbourhood Watch scheme. It can also include measures to reduce fire risk like fitting and maintaining smoke alarms. You can also reduce your premium if you are willing to cover more of the cost of any claim.
A policy which provides less cover every year (known as a decreasing-term insurance policy) will make your premiums lower than a fixed insurance policy (known as level-term insurance). Alternatively, if you are seeking insurance as a couple you could choose a single joint-life policy rather than two individual policies. However, you should make sure that a policy suits your own unique circumstances before you choose it. Whatever the policy, you could also lower your premiums by improving your health – for example, by losing excess weight or quitting smoking.
Firstly, you could buy a low-risk car; one, for example, that has a good safety record, is unpopular with thieves and has automatic safety belts and anti-lock brakes. You can also reduce how much you pay in premiums by encountering fewer accidents, so be sure to drive carefully. There are also various discounts that can be used to reduce premiums. These include the low mileage discount, for people who drive their cars infrequently; the mature driver discount, for people aged over 50; and the low-risk occupation discount, for people in low-risk occupations like doctors and teachers. Some companies are now offering reduced rates for younger drivers if they are willing to allow them to monitor their driving with an in-built device.
Make sure you compare
Many of us lose money by simply automatically renewing our insurance policies. When the time comes to renew, make sure you shop around as there is a high chance you’ll find a better deal somewhere else. Comparison websites are the perfect place to start.