Most of us have some form of home insurance. Normally we would want to cover the cost of the building if we own it or are buying it with a mortgage and the contents even if we do not own it. However, home insurance costs a lot of money and so you may be interested to work out how to save money on it. There are some tips below on how you can save some money on your insurance which you might want to try out.
It is well worth comparing the cost of your insurer with others. You may find that you are paying more than you need to. You can check using a comparison website and it will give you an idea of what different insurers are charging and you will be able to decide whether you think that you are paying too much. You will need to check to see whether the cheaper insurers are going to provide you with adequate cover as they might be cheaper because they do not cover you for so much or perhaps their service is not as good. However, you should be able to find this out by looking at the terms of the cover or contacting the company to check what it covers and reading reviews. It might seem like a hassle but you can potentially save hundreds of pounds.
Negotiate with Current Insurer
If you are not keen on swapping insurer then it could be worth negotiating with your current one. Take a look at the prices that you can get form other insurers and then ask your current one whether they can beat that price. Explain that you are tempted to leave but you do want to stay with them and what can they do to keep you. Some will not be able to lower their price, but some will be able to and there are some that will automatically lower it if you ask and so you could be missing out on a reduction. It might feel cheeky to ask them if they can lower the price, but they so often are willing to reduce it, you will be missing out if you do not ask.
Pay Yearly not Monthly
It can often be a lot cheaper if you pay the insurance premium yearly rather than monthly. Obviously, you will have to be able to come up with that lump sum of money. However, if you choose to take the monthly option, it will be easy to manage the payments, but you will find that you will be paying more in most cases. Some insurers will not charge more for monthly cover and so you will need to think about whether it might be cheaper to go with one of those, if monthly is your only option. It can be worth considering whether you can save up during the year so that you can afford an annual payment next time the insurance is up for renewal.
Increase the Excess
An additional way to save money could be to increase the excess on the insurance. The excess is the amount of money that you pay when you make a claim. So, the insurer will ask you pay some first and then they will pay the rest. They do this to prevent you making small claims. The higher the amount you are prepared to pay, the lower your premium will be, although there will be limits. You will need to think about what you think you will be prepared to pay before making a claim and what you will be able to afford.