With the pressure and worry of having to insure your car, home, pet and even your life, many households begin to see an increase in their monthly outgoings. However, there are simple solutions to save money on your insurance expenditure that will have a positive effect on your bank balance.
Here we look at each of the major insurance types available and how to save money on each. Remember, you can always save money on your insurance costs by keeping up to date with the latest insurance news.
Home insurance: what is it?
Home insurance covers both the building and its contents. Building insurance covers the damage to the structure of your home and the permanent fixtures that exist within your property. Essentially, the amount of cover required depends on the cost of rebuilding your home in the event of a fire, flood and potential other hazards. Contents insurance protects all your personal belongings such as furniture, clothing, electrical equipment and so forth.
Home insurance: how to save money
To save money when choosing your home insurance, opt for a higher excess, which is the amount of the claim that you are required to pay.
As the security of your property is taken into consideration when calculating the cost of your cover ensure you increase the security of your house. For example, upgrading your locks, installing a burglar alarm and smoke alarms will decrease your cover premiums.
In addition to these tips, by choosing a combined building and contents insurance package may allow for a considerable discount rather than purchasing the cover separately. It is wise to double check this first though and remember that you may not need both forms of home insurance in all situations. For example, tenants typically only need contents insurance as the landlord will have a form of buildings insurance in place and is responsible for its upkeep and maintenance.
Car insurance: what is it?
There are three types of car or motor insurance (third party only, third party, fire and theft, and fully comprehensive), which will change the amount you are required to pay depending on what cover suits your personal needs. Car insurance is a legal requirement in the UK so while the option to forgo cover altogether is not available, there are ways to cut costs.
Car insurance: how to save money
One simple method to decrease your premiums is to opt for a higher voluntary access. Most policies insist on a payment towards the cost of your claim however you are able to increase the sum at your own will. Which level of policy you select will also affect the premium but don’t assume less cover means a lower price as some comprehensive car insurance policies have been proven to be cheaper than the equivalent third party options.
Another way of dramatically reducing your motor insurance cover is to providing specific named drivers rather than allowing anyone who drives the car (with your permission) to be covered. Also, storing your car in a locked garage, keeping the annual mileage low and insuring multiple cars with one company will keep costs to a minimum.
Life insurance: what is it?
Factors that affect the cost of life insurance include the sum insured, your age and whether or not you smoke. It is important that you choose the correct insurance that is best suited to you to ensure that you are paying the correct amount and getting the cover you deserve as this policy is one of the most important. It offers a cash payout in the event of your death, helping to support your loved ones when they need it most.
Life insurance: how to save money
Carry out extensive research to make an informed decision or if you already own an existing policy then it may be worth shopping around to reduce premium costs. You should be able to cancel existing policies but make sure you have a replacement beforehand.
Finally, by combining all your insurance policies into one insurance company you could lower your cost significantly. This may result in taking your business elsewhere but will save you money in the long run.