Consumers urged to cut cost of insurance
As Brits resolve to tighten their financial belts at the start of the year moneysupermarket.com reveals that a few simple steps could cut the cost of your insurance by nearly £800 on average this year.Richard Mason, director of insurance at price comparison website, moneysupermarket.com, said: “While buying insurance is essential for financial security and all-round peace of mind, it is important that you only opt for a level of cover relevant to your needs and at the best available price. You can trim your monthly outgoings by shopping around regularly, but you can also take several other simple steps to reduce your premiums this year. Across the sweep of standard insurance products you could probably save nearly £800 this year alone.”
moneysupermarket.com recommends the following money-saving tips to cut down the cost of all your insurance premiums:
Home Insurance
Top tip 1: Consider paying annually as some insurers charge up to 30% APR to pay monthly – save just under £16.40 on average.
Top tip 2: Adding security (by fitting approved door and window locks and installing an alarm) could save you a further £21.13 a year.
Top tip 3: Increasing your voluntary excess as well could give you a further saving of £9.86.
TOTAL SAVING = £47.39
Motor Insurance
Top tip 4: Halving your mileage by car-sharing or telling your insurer if you only use the car at weekends can save you £43.08.
Top tip 5: Increasing your voluntary excess to £250 could give you a further saving of £15.20
TOTAL SAVING = £58.28
Top tip 6: If you are a younger driver, adding an older driver can cut premiums and save you £43.45. Adding a voluntary excess of £250 could save a further £50.20.
TOTAL saving = £93.65.
Life Insurance
Top tip 7: Give up smoking – on average you could save £62.80 a year if male, or save £47.28 if female.
Payment Protection Insurance
Top tip 8: Think twice before accepting standard payment protection deals offered by mortgage lenders, credit card providers, mobile phone operators and others as you could save £27.80 a month (or £1,000.67 over period of three year loan) by choosing the best deal from an independent provider.
TOTAL saving over the year = £333.60.
Travel Insurance
Top tip 9: Don’t get bullied or bamboozled into taking out travel insurance through your travel agent or tour operator as you could save £121.99 on a single-trip policy and £98.20 on an annual policy by going with the best deal from an independent provider.
TOTAL saving over the year on an annual policy = £98.20
Shop around
Top tip 10: Last but not least make sure you shop around as the biggest lasting savings are to be made through this single, simple discipline.
Average saving from shopping around for the cheapest policy:
Home insurance: £85.22 (based on difference between average policy and cheapest on market over a year)
Motor insurance: £95.31 (based on difference between average policy and cheapest on market over a year, with voluntary excess of £250)
AVERAGE TOTAL SAVING: £180.53