Top Tips on How to Reduce Your Insurance Costs

We all need insurance; whether it’s home insurance, car insurance, medical or other, we will inevitably have to choose insurance many times during our lives so learn these Top Tips on How to Reduce Your Insurance Costs.

It is essential to get the best possible deal, but sometimes it is tricky to figure out the best policy? Is it the cheapest one, maybe, but probably not?

We can utilize the following methods to reduce our insurance costs while still looking for the cover that suits us most.

Real businesswoman. Nice appealing young woman holding a wheel and sitting in the car while expressing positivity - Top Tips on How to Reduce Your Insurance Costs

Shop Around

When it comes to the time of year when our insurance premiums are due for renewal, it is prudent to shop around, as if we miss the renewal/cancellation deadline, we will be tied in for another year.

So it’s a good idea to search everywhere before this date, we can even arrange a new cover to start at a future date.

There are various insurance search engines online and some insurers that don’t appear on these sites.

Be sure to scrutinize the details of policies shown; we can usually search and filter policies on items such as level of excess, perks, etc., and price.

Buy Budget Items if Possible

If our status and happiness are not tied up in our belongings, it might be wise to consider possessions of lower value.

If the items we are insuring are less valuable, then it will cost less to insure them.

Take car insurance as an example; a 10-year-old Ford Focus is worth less than a brand-new Porsche, and therefore costs less to insure, with most providers.

We should never undervalue our items for insurance purposes, as in the event of a claim, we will not receive the total value.

Increase Safety

For all insurers, the most significant factor in deciding what to charge depends on the level of risk they are taking, which means the likelihood of you claiming.

Therefore, it stands to reason that the more steps you take to mitigate risk and maximize safety, the less your premium will cost.

Whether it’s a customized home security package to lower your home insurance, or a black box recording your driving performance, it is crucial to be as safe as possible.

No Claims Bonus

One thing that shows you as a low risk to an insurer is that if you’ve held insurance for an extended period and never made a claim.

For this, you will receive a no claims bonus certificate from your insurer.

The longer the no claims certificate is for, the bigger the savings.

You can even take out a policy that has a protected no claims bonus; what this means is that even if you make a claim, it does not count against your claims bonus.

Consider Your Job Title

An insurance company considers different occupations as carrying different levels of risk.

This is based on longitudinal data on thousands, or millions, of previous customers.

We don’t all neatly fit into the job categories; consider a self-employed person who runs a landscaping company, you could describe yourself as a company director, a landscaper, or even a manager, and all of these will result in a different insurance quote.

Did you enjoy this article?
Signup today and receive free updates straight in your inbox. We will never share or sell your email address.
I agree to have my personal information transfered to MailChimp ( more information )

Add Comment