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Saving money and increasing income

How can I save money on insurance?

If you drive a car or own your own home, then paying to insure these is pretty much unavoidable. However, you may wonder if there’s a way to reduce the monthly cost..

According to a recent report by the Financial Conduct Authority (FCA), people who are loyal to one insurance provider are being charged more than those who shop around.

It's easy to let an insurance policy automatically renew without having to lift a finger, but if you do this, you could be losing out on up to £200 each year. There are other areas in your budget where this money could be better used.

For most people, switching to another insurance provider should be an easy process. If you feel you’re paying too much, try to switch to another provider who can give you a better deal.

How to get the best deal on your insurance

Check your bills

When payments are made by direct debit, it can be easy to overlook them. Try to keep an eye on how much you're being charged each month, and if it increases, ask your provider why.

Mid-contract price rises do happen, and technically your insurance provider isn’t breaking the rules by increasing your payment. However, you do have the right to complain to your provider if you feel the increase is unfair.

Looking for more ways to save money on your bills?

On our blog, you can find lots of money-saving ideas to help keep your monthly bills under control, such as: 


 

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Make a note of when your policy ends

If you forget when your policy ends, it’ll probably 'auto-renew'. This means, if you do nothing, your provider will automatically renew your policy. This will tie you in for another year, often at a higher price.

Mark the date your policy is due to end on a calendar, or save it in your mobile phone so you have a clear reminder before it renews automatically.

Shop around for a better deal

People who compare what they’re paying to what’s on offer elsewhere usually get the best deals. When your policy is due for renewal, compare prices from a number of providers to check you're getting the lowest price possible. The easiest way to do this is by using one or more price comparison sites.

When considering another deal, be sure to check the fine print. If you switch to another insurance provider, you need to make sure that you're getting everything you need, such as flood insurance if you live in a flood risk area or a good no-claims bonus for car insurance.

Ask for a better deal

The thought of haggling on price makes many people feel nervous or uncomfortable, but when it comes to dealing with your insurance provider it's best to be direct.

Call your provider and tell them you know you can get a better deal elsewhere. Take screengrabs of good deals you’ve seen, or write the details down so you can refer to them during the call.

You'd be surprised how effective simply asking for a better deal can be. After all, your provider doesn't want to lose you as a customer so they'll do everything they can to stop you leaving them for one of their rivals.

Remember to be courteous during the call. Insurance company staff are human too, and are more likely to help you out if you're polite and respectful.

If you don't feel like you're getting anywhere with the person you're talking to, don't be afraid to end the call and try again. You may have more luck by simply talking to someone else.

Switch to somewhere better

If you've found a cheaper insurance policy with a different provider, and your current provider can't match it, make the move.

Switching is actually pretty straightforward, and once it's done, you don't need to worry about it until it's time to renew again.

Review your insurance every year

If you get a better deal, it's natural to feel pleased with the outcome, but don't make the mistake of getting too comfortable with your new provider.

Check for better deals each time your policy is due to end so you don't miss out on potential savings. Remember, when it comes to insurance, loyalty doesn't pay. Keep shopping around to get the best deals.

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