Could you save £100s on Home InsurancePosted on Dec 15, 2023
The cost of home insurance is up 26% compared to last year, with no signs of slowing down. By checking if you can secure a cheaper deal, you could save £100s on home insurance. We’ve put together some top tips to help you keep the cost of your home insurance down.
What is home insurance?
Home insurance protects you if something drastic happens to your home like a fire, burglary or storm damage.
There are 3 types of home insurance: buildings, contents and combined buildings and contents. What type of cover you need depends on your circumstances, so it is best to check what kind of policy you need. MoneySavingExpert has helpful advice here.
Read on for our top 5 tips to save money on your home insurance policy!
Never automatically renew
Auto renewing your home insurance policy means you’ll pay the cost if your coverage increases. You lose your bargaining power which means you may be paying over the odds for the service and cover you’re receiving.
Instead, make sure you seek out better deals by using price comparison sites. Comparison sites search numerous insurers, giving you a range of prices and levels of cover, giving you the flexibility to choose what is best for you.
Compare your quote
Searching price comparison sites is a great way to see how far your money can stretch. However, some insurance providers don’t appear on comparison sites, so its worth shopping around. Direct Line, for example, are worth checking as they can be competitive but don’t appear on comparison sites.
Do you have the right amount of cover?
The amount you are insured for makes a difference to both the insurance premium you pay and the amount you receive if you need to make a claim.
Try MSE’s rebuild calculator to work out how much you need to insure for buildings cover, and their contents calculator will help you ensure you’re getting the right level of cover. This will make sure you’re fully covered if something was to happen to your home, but also ensures you’re not paying more than you need to.
Increase your excess
‘Insurance Excess’ is the amount you pay towards a claim, and increasing it can reduce the overall premium you way. When comparing home insurance quotes, try adjusting the insurance excess, and see if it makes a difference. Remember you would need to pay this insurance excess if you made a claim, so make sure you’re comfortable with the amount you settle on.
Pay for your home insurance annually
Paying for your home insurance in monthly instalments might be convenient but is almost always more expensive. Insurance companies often charge interest and an admin fee, so it could cost up to 40% of your annual premium.
Paying annually could cost less, and remember with rates from just 2.9% a Penny Post loan could lend a hand and save you money. Use our handy loan calculator to find out how a Penny Post loan compares.