Image Source: Flickr
Insurance can be a costly business, particularly with so many different kinds of insurance around these days for so many different things. The good news is that there are a number of helpful tips that can assist you to save money on insurance – let’s take a look at a few…
Car insurance saving tips
Some tips for how to save on insurance can seem downright bizarre, but are actually true. A good example of this is your job title. Using one job title rather than another can actually increase the cost of your car insurance. According to some comparison websites, writing “chef” on your car insurance application could see your average quote be as much as £100 higher than if you just wrote “kitchen staff”! Likewise, “office administrators” pay less than “office managers”, being a simple “teacher” will cost you less than writing “music teacher”, and “bricklayer” will see you pay out less for insurance than “builder” – which in turn will still cost you less than if you wrote “construction worker”!
A somewhat less arbitrary, and rather more common-sense way to save money on car insurance, is not to wait until the last moment to try and find your new policy. It is a much better idea to switch, or start looking for a new provider, several weeks before you have to, rather than on the day your current coverage runs out, as it vastly increases your odds of getting a better deal. Paying upfront is another good way to save cash; many insurers charge interest to those who spread the payment over the course of the year.
Another good tip is to take a close look at the number of extras that come included with your car insurance quote. Every little extra, such as breakdown cover, theft insurance, personal accident cover, windscreen cover, driving overseas, and the offer of courtesy vehicles, adds to the cost of the premium. What’s worse is that some of these may already be covered by other policies, such as AA membership, travel insurance or home insurance, meaning you are effectively paying for them twice. Make sure this is not the case, and decide whether some of these extras are really necessary.
Life and home insurance saving tips
The two main kinds of life insurance are “whole of life” insurance, which lasts until the day you die, and “term life insurance”, which lasts just the length of the policy term, and so obviously will not pay out unless you die within that period. Term insurance will clearly be cheaper, and so may be the best option if, for example, you only want the insurance to apply if something happens to you while your children are still living at home. It’s cheaper to get life insurance when you’re in your 20s or 30s than it is later on in life. Stopping smoking is another good method of cutting down the costs of life insurance. The cost of home insurance can be reduced by securing your home with an approved burglar alarm, and avoiding expensive frills such as accidental damage cover.
Saving money on insurance is something that almost anyone can achieve, just by doing a little research, not accepting the first offer that comes your way, and working out what it is you need – and don’t need – from a policy.