Is it possible to get a good deal when renewing your insurance policy (or at least one that isn’t as bad)? Here’s a guide on how to reduce costs.
Getting a decent renewal price is all about timing. As a general rule, if you contact your insurance company three to four weeks before the renewal date, you’ll get a better discounted price if you stay with them for another year. The closer you get to renewal, the worse the deal gets.
Get rid of anything that you don’t need. Lots of us end up paying for ‘add-on’ policies like gap insurance (the sale of which is being investigated by the Financial Conduct Authority). There may be other components to your existing policy that you don’t need, like legal expenses insurance.
Alternatively you can increase the excess limits on various chunks of your policy. Yes, you’ll pay more if you have to make a claim, but you can shave off some cash this way. You may also find you are over-insured (many people overestimate the contents of their property) so price everything up and contact your insurer. Don’t forget you only get a pay-out for the replacement value of the items you’re claiming for, not a brand new version. An iPhone 8 claim will not get you the latest iPhone!
Take time over your application. Give as much detail as you can on things like repairs you’ve made to the structure of a building, or simple details like exactly when your car passed its MOT. Bear in mind that some home improvements or car modifications will actually make your policy increase in price and some things you might assume would save you cash, such as installing a video doorbell, might not in practice.
Consider combining your policies. If you’ve got more than one car or you’re willing to combine home/vehicle/travel insurance, you may get a much better deal though you should check if any aspects of the policy, such as what’s covered or excess limits, change in comparison to a stand-alone policy. Multi-gadget policies are also a great idea which can work out much better than taking out multiple individual policies.
Comparison sites will give a useful overview of the insurance deals out there. But be aware that things like flat or thatched roofs, that can significantly increase your quote, won’t come up on all comparison sites. So have a think about what might have a big effect on the price, like car modifications or things like your age or health. You can use these factors to get a more realistic quote, though you’ll have to go through the insurer’s website. Remember not all insurers are on comparison sites – but some discounts only apply if you click through from these sites.
Have a fiddle about with the application too. There are lots of weird quirks that can have an impact on your quote. One of the most notorious is what you put into the field covering your job. Research has shown that a few subtle changes to the way you describe what you can do can shave off some cash!
And finally, pay annually. If you want to save money it will cost you less if you pay up front for the next 12 months.
Martyn James is a leading consumer rights campaigner TV and radio presenter and journalist