The Average Home Insurance Quote Has Soared – Here’s How to Cut Costs
According to insurance expert Consumer Intelligence, the average home insurance quote has increased by over a quarter in the past year. The Association of British Insurers reports that the typical homeowner now spends £329 per year on insuring their property. To help you reduce your costs, we’ve gathered our top 15 tips:
- Pay your bill annually: Paying your home insurance premium in one go annually can save you money on interest charges, which can add up to 40% of your annual premium if you pay monthly.
- Increase your excess: Raising your excess voluntarily can lower your premiums. For example, increasing your excess from zero to £400 could reduce your premium by 25%.
- Remove unnecessary extras: Consider whether you need add-ons like emergency cover or accidental damage protection. These extras can significantly increase your premium.
- Join Neighbourhood Watch: Being part of a Neighbourhood Watch scheme can help reduce household crime. Some insurers offer up to a 5% premium reduction for being a member.
- Check admin charges: Some insurers charge administration fees for policy changes, such as updating payment details. Consider paying slightly more for a policy with lower admin fees to save money in the long run.
- Cash in on your no-claims discount: If you don’t make a claim on your home insurance for 12 months, you could be eligible for a discount on your next premium. Discounts range from 10% for one year no-claims to 50% or more after five years.
- Check with insurers directly: While comparison websites can be helpful, some providers do not appear on these sites. Contact insurers directly to check if their premiums are cheaper before finalizing your decision.
- Value your possessions: Be realistic about the value of your belongings to avoid overestimating their cost, which can raise your premiums.
- Combine your cover: Purchasing both building and contents cover together can save you around £25 per year on average.
- Keep tall trees in check: Tall trees around your home can increase the risk of damage. Regularly prune, maintain, and cut back trees to lower your insurance costs.
- Install a safe: Storing valuable items in a safe can reduce your premium. Consider fitting a small safe, which costs around £150.
- Upgrade your home security: Improving your home’s security systems can lead to significant cost savings. Upgrading locks or installing a monitored smart security system can result in premium reductions ranging from 2% to 10%.
- Use a free-to-use cashback website: Utilize cashback websites to earn money back on online purchases. For example, Quidco offers £34 cashback when you buy home insurance using their comparison tool.
- Look for a discount: Health service workers and teachers can receive a £20 voucher when purchasing a combined buildings and contents home insurance policy.
- Buy insurance online: Halifax and Lloyds Bank offer a 10% discount on home insurance premiums when purchased online.
By following these tips, you can reduce your home insurance costs and save money. Remember to shop around and compare quotes to find the best deal for your needs.
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