2 minutes reading time (431 words)

Home insurance: five minutes research, 30% discount.

house for insuranceIs there anyone out there who automatically renews their household insurance? Surely there can’t be. My home insurance renewal has just come through. Last year it was £99.68 (fortunately the new rules mean insurers have to tell you what your previous premium was). This year they want £134.40. Bear in mind I haven’t made any claims on my household insurance over the last year (indeed, I have never claimed on household insurance). There’s no explanation for the massive hike, way in excess of inflation. Apparently, though, I am a valued customer. I don’t feel valued, to be honest. Nor do I feel loyal.

So I did five minutes of research on a comparison site. I used Moneysupermarket.com - my details are saved on the site and I can remember the password. It comes up with a quote for £93.32. The cover is the same as the old one – actually, it is better with 50% more contents cover. My calculations show that those few minutes will save me more than 30% compared with the renewal quote.
Last year, my current insurer offered a higher than the previous year quote, but when I went online I was offered the same deal from the same insurer at a much lower rate. I rang up and the insurer cut my premium down to the same level as on the comparison site. This year, my existing insurer doesn’t come up on my quotes from Moneysupermarket, so I won’t bother phoning up to bargain them down. I’ll just leave and go to the new insurer.

I am lucky in that I live in a very safe area in a conventionally-built house so my premiums are always going to be low. If you have a nicer place, then you’re going to pay more than me. But don’t overpay whatever you do. My cover would be £107.22 over a year if I paid monthly which is a huge amount more than the £93.32 for paying in one instalment. Then if I wanted to arrange cover over the phone rather than online there would be an extra £12.50. Add on legal expenses insurance would be another £24.99 and home emergency cover an extra £44.99. So, if I opted for paying monthly, arranged it by phone and opted for the extra cover then I’d be paying £189.72 – more than double the original quote of £93.32. It all adds up: check our guide to home insurance here for more ideas on cutting costs. And read Jane’s blog on paying monthly for car insurance cover here: it applies to home insurance too.

Why YOU could be missing out on tax giveaways
Cheap airport car parking: is it worth it?

Related Posts

 

Comments

No comments made yet. Be the first to submit a comment
Already Registered? Login Here
Guest
Wednesday, 14 November 2018