Seven Ways To Keep Your Insurance Premiums Down

Ever since 1st January 2022 new pricing rules came out that meant that renewals for home and motor insurance couldn’t be more expensive than new customer prices. So pricing is more transparent now than it used to be, but prices are going up (even though we want insurance premiums to go down!)

Insurance companies need to collect enough money from everyone to be able to pay out to those that need it. And because priced are going up it’s more expensive to fix issues. This includes anything from a broken bumper on your car to replacing items within your home if you’re burgled. If insurers are having to pay out more then it means so do we, even if you’ve not made a claim.

Inflation is causing everything to go up, but here are some ways you can keep your insurance premiums down as much as possible.

Look at changing supplier

The insurance market is competitive so it’s always worth comparing policies before renewing. Companies don’t give you money off for loyalty as they have to offer the same prices whether you’re a new customer or have been with them for 10 years. So being loyal doesn’t account for anything.

When you get a renewal quote it will show what you paid last year vs your new quote, so you’ll see any price hikes. And remember that prices are thought to go up the closer you get to your renewal date, so have a look around a few weeks before, not a few days.

Keeping your insurance premiums down by never auto-renewing

Never just accept your auto-renewal price as you may pay more if you don’t shop around.

Usually you’ll get your renewal price a month before your policy ends so once you have this head to the comparison sites and do your research.

Most companies will have the option to switch on or off auto renew, so make sure you have yours switched off.

Speak to your current supplier

Even if you don’t decide to change who you’re with it’s worth calling them to see if they can get you a better deal. Generally all you have to say is that you’re thinking of leaving as you found a better deal.

I’ve done this quite a few times and sometimes my current provider is able to take some money off the renewal price.

Keep your insurance premiums down by checking your information

Make sure all the information and figures you provide are correct. For example the estimate of how many miles you may drive in your car that year. You can find out from your car’s MOT certificate your annual mileage. But make sure to factor in any changes for example if you’re going to start driving to work this year.

This is also true for home insurance, don’t overestimate the value of the items in your home.

If you over estimate you may be paying more than you need to.

Add an additional driver on your vehicle insurance

If you want to keep your insurance premiums down it may work out better to add another driver to your policy such as a partner. This will only keep costs down if they’re an experienced driver without a claims history. Insurers will see this as reducing the ‘risk’ and if they’re added as a secondary driver it doesn’t matter if they rarely drive the car.

However, listing yourself as the ‘main driver’ of your child’s car simply to secure a cheaper policy price is known as ‘fronting’ and is illegal.

Keep your insurance premiums down by paying annually

When you pay your premiums monthly you end up paying interest so it costs less to pay in one go. Most of us don’t have a few hundred pounds lying around so over the next year starting putting money aside so you can pay it off in full next year. That’s what we do and it can save us hundreds every year.

Another option to pay it off this year is looking into a credit card with 0% on new purchases so you can pay it off over the year. But don’t take out debt or a credit card if you’re not confident in your financial headspace or ability to use credit.

Increase the excess

If you increase your excess (the amount you pay in the event of a claim) it can reduce your premium. But it’s worth comparing the prices as sometimes going from a £200 excess to a £500 excess will only save you a few pounds. But if you claim this can make a massive difference, so it may not always be worth it.