Insurance is one of those things that should be simple but end up taking hours of your time to get right. The concept is simple: you pay a monthly or yearly premium and in return, insurers offer you coverage on the terms agreed upon. When you need to make a claim, the insurance company will pay out under the agreed terms.
Problem is things get considerably more complex when you start factoring different levels of cover and excess and so on. Insurance can end up being unnecessary in some cases, and too expensive in other cases – so getting the right level of cover for what you need will result in the cheapest insurance premiums.
When looking into buying contents insurance, you will be required to agree on an excess. The excess is the amount you will be expected to cover, with insurers paying the rest. The best way to save money on home insurance is to therefore agree on a high level of excess – as insurers won’t be required to pay unless significant damage or loss occurs. This means that if you damage something, you may have to sell stuff online for free to cover the damage yourself.
When you have a number of ongoing agreements with credit card companies, insurers and agencies, you could end up with duplicate cover – both insurers covering the same thing. Insurers will charge you for every type of cover you have – so making sure you have no conflicts will save you money.
Make fewer claims
Insurance should only be used in cases where you really need it, as regular small claims will all add up to increase the cost of your insurance premiums. Only use your insurance when you simply can’t afford to cover the costs yourself. Speaking from personal experience, I had to sell my iPhone because constantly replacing it after breakages and loss was costing me too much on my insurance.
Bear with me, this does make sense. Your insurer will charge lower premiums if you are prepared to take on more of the cost if you do make a claim. Upping your excess can be a great everyday saver if you are pretty certain you won’t need to make a claim. Think about your previous history with phones and tech. If you tend to take good care of them, this is a great call.
The insurance market is extremely competitive in all sectors, especially since there are now many insurers who operate only over the internet in a bid to keep costs down. That means that with a bit of work, you could be saving hundreds of pounds on your insurance policy. There are many comparison websites that allow you to compare the market easily. The important thing to remember is that you should always compare insurance policies on a like-for- like basis, or you could end up with less cover than you had planned for.