The costs of car and home insurance policies are on the rise, but there are some steps you can take to ensure you get the best deal.
Follow our top 10 tips for advice on saving by shopping around, setting the right excess and avoiding unnecessary insurance add-ons.
1. Switch provider and save up to £120
If you’re near the end of your contract, it’s a great time to assess your options and see if you could make a saving by switching providers.
Compare the Market says the cheapest car insurance premiums quoted to drivers rose by £42 in the first quarter of this year, to reach an average of £568.
The price comparison site claims drivers could save up to £120 by shopping around for a better deal. This figure rises to £257 for drivers under the age of 25.
2. Turn off auto-renew to save £49
Drivers who allow their car insurance policies to automatically renew pay an average of £49 a year more than those who switch, according to figures from MoneySuperMarket.
Many car insurance policies are set to auto-renew by default, so if you’re planning to switch, ensure you contact your provider in advance to avoid being charged twice.
3. Check the insurers that aren’t on price comparison websites
Price comparison websites are a good place to start your search for a new deal.
Comparison sites allow you to compare dozens of different products and play around with different excesses and levels of coverage to see which might suit you best.
It’s worth noting that some insurers don’t feature on all comparison sites. For example, products from Direct Line and NFU Mutual are only available direct.
4. Be realistic about your excess
If you need to make a claim on your insurance, you’ll need to pay the excess stated on the policy.
Setting the right excess is a balancing act. A higher excess might lower your premium, but setting it too high might make claiming redundant or too expensive.
For example, a customer making a claim on their car insurance will need to pay both a compulsory and voluntary excess. If your compulsory excess is £250 and voluntary excess is £500, you’d need to pay £750 when claiming – a cost that may prove prohibitive.
5. Improve your home security
Most insurers require homes to have a minimum level of security before they’ll offer coverage.
Before searching for a home insurance policy, consider improving your home security by adding deadlocks to external doors and locks on accessible windows.
You might be able to get even better deals by going a step further and installing a burglar alarm or five-lever mortice deadlock.
6. Pick the right job title
Job titles can affect the cost of car insurance. When looking for a policy, you should check the available options before entering your occupation.
For example, describing yourself as a ‘writer’ rather than ‘journalist’ can sometimes impact your premium.
You must ensure the occupation you choose is an accurate description of your circumstances – misrepresentation can lead to insurers canceling your policy or declining to pay claims.
7. Haggle to save £50
If you’d prefer to stay with your current provider, we recommend haggling to get a better deal.
One simple method is to use cheaper insurance deals you’ve found elsewhere as leverage with your provider.
Which? found that customers who haggle pay less than those who don’t, and in a recent survey those who haggled reported an average discount of £50.
8. Reconsider add-ons and save £50
Car insurance add-ons might add as much as £50 or more to your premium.
Common add-ons can include legal expenses insurance, personal accident cover, breakdown cover, and key cover.
You might already have breakdown cover included with a packaged bank account, and key cover is included in some home insurance policies.
Carefully consider what you do and don’t need and check the policies you already have before settling on any add-ons.
9. Consider getting a black box policy
Black box insurance policies, also known as telematics, calculate premiums based on the way motorists drive.
A report by Compare the Market found telematics quotes are cheaper than standard car insurance for 78% of drivers aged between 17 and 20 and 69% of those aged 21-24.
Young drivers often face sky-high premiums, so it’s worth comparing quotes to see if you could make a saving.
10. Don’t pay for buildings insurance if you’re renting
If you’re renting a home, buildings insurance is your landlord’s responsibility.
This means you’ll only need to purchase contents insurance to protect your possessions.
While there are specialist short-term insurance policies available, and policies covering a single room, renters should compare premiums and cover levels from renters policies with more ‘traditional’ contents cover.
If you’re a leaseholder, buildings insurance might be covered in your service charge.
Which? Limited is registered in England and Wales to 2 Marylebone Road, London NW1 4DF, company number 00677665 and is an Introducer Appointed Representative of Inspop.com Ltd for the introduction of non-investment motor and home insurance products (FRN 610689). Inspop.com Ltd is authorized and regulated by the Financial Conduct Authority to provide advice and arrange non-investment motor and home insurance products (FRN310635) and is registered in England and Wales at Greyfriars House, Greyfriars Road, Cardiff, South Wales, CF10 3AL , company number 03857130. Confused.com is a trading name of Inspop.com Ltd.