In the current economic climate, we’re all looking to save money where we can. Around 77 per cent of us shop around for our car insurance so that we can get a better deal, and huge numbers of us also shop around for energy deals, loans and even for cheaper groceries.
Despite the widespread support for the ‘compare and switch’ approach, it seems that home and contents insurance has somewhat fallen through the cracks. An incredible 78 per cent of customers admit to accepting their renewal price without checking if it’s a good deal, which could be costing us dearly.
Home and Contents Insurance: Why Shop Around?
The most compelling reason to shop around is that if you don’t you could be paying more than you need to. Insurance companies will often offer new customers exclusive deals and discounts to get them on board, but then are at liberty to hike the renewal price, often without the customer realising it’s happening.
Energy providers have hit the headlines recently because they frequently stick automatically renewing customers on their most expensive ‘standard’ tariff. Chances are your insurance provider is going to do the same. Recent research by VoucherCodesPro found that on average, auto renewing home insurance customers were paying a whopping £339 a year more than the cheapest deal available to them.
Jot the date of your renewal in your diary, and make sure you’re aware of any notice period you must give. Get quotes in from comparison sites and then ask your provider to see if they can match or beat the best quote you found. Never allow your policy to auto renew; loyalty does not pay!
It’s Easy To Compare Quotes For Home And Contents Insurance
If you are keen to know whether you’re getting a good deal or not, you’ll be pleased to know it’s actually really straightforward to compare insurance costs. There are three main routes to getting comparative quotes:
Use comparison sites: Just as you do for your car insurance, there are many price comparison sites out there ready to help you source numerous quotes. Always go to at least two comparison sites to ensure you’re getting a good spread of offers, and bear in mind some providers will not be available through these sites at all.
Go direct: For the companies who do not quote via price comparison websites, you could go direct for a quote. Notable for their absence from price comparison services are Aviva and Direct Line, two of the UK’s largest insurers, so keep in mind you might want to go to them directly.
Use a broker: Sometimes brokers can obtain better deals on insurance than any consumer is able, particularly if you have an unusual house. If you live in a listed building, in a flood prone area or a house of nonstandard construction, it’s worth getting a broker to do the shopping around for you.
You may be offered insurance as part of your mortgage deal, or even from your bank, credit card company or supermarket. Whoever it might be offering to insure you, take the time to make sure you’re getting a good deal before jumping in to any agreement.
Top Tips For Getting A Better Deal
Whether you’re in the market for a new policy or are approaching your renewal date, there are some things you can do to help your home and contents insurance provider give you a better deal.
To get the lowest price possible, try to:
Pay annually: Paying monthly is almost always more expensive than paying in one go.
Buy contents and buildings together: If you need both, buying them together will offer significant savings over treating them separately.
Increase your excess: Opting to pay a higher amount of voluntary excess lets your provider offer you a lower rate on the policy.
Get the right cover: Try not to overestimate the value of your contents, otherwise you could be paying for cover you don’t need. Check what’s already covered by other policies, such as your packaged bank account or travel insurance.
Stop smoking: Smokers tend to pay more for their home insurance because of the increased risk of fire.
Fit smoke alarms: Good smoke alarms on every floor of your property will not just help to lower your insurance premium; they could save your life too.
Improve security: Upgrading locks on external doors, putting locks on windows and installing security lighting can be effective ways to both make your home less vulnerable and your premiums lower.
While you are shopping around for a cheap home insurance quote, make sure you are comparing prices fairly by discovering all the hidden costs. Administration charges are one of the biggest hidden expenses on home insurance quotes, so be confident you’ve got all the facts from your provider before making any decisions.
If your home insurance is up for renewal and you want a better deal, contact me to see whether I can help. Call 01252 759 233 or email info@thesurreymortgagebroker.co.uk
