How to save on your insurance

When it comes to buying home or motor insurance, there are two things you need to consider - getting the right cover, and paying the right price.

So we've put together some tips to help you get the level of protection you need, while keeping the cost under control.

Home insurance
Review your level of coverĀ 
It's not unknown for people to pay for insurance they don't require - like renters signing up for home & contents cover, when they really just need contents-only. So check you have the right level of cover, and don't pay for protection you don't need.

Buildings insurance - cover for rebuild cost, not market value
If you own your own home, you should have buildings insurance to cover the cost of rebuild - which is usually a lot less than a property's market value. So make sure you haven't over-insured by paying for cover above and beyond the level you need.

Strengthen security
Most insurers stipulate a minimum level of home security in order to qualify for cover, like a BS3621-approved door lock, a 5-lever mortice lock, a rim automatic dead latch, or a key-operated multi-point locking system. You may be asked questions about your home's security in your initial application, and the stronger it is, the lower your premiums are likely to be.

Choosing the right excess
Almost all home insurance policies include a compulsory "excess" - the amount you have to pay if you make a claim. But some insurers allow you to choose a voluntary excess on top of this value. A higher voluntary excess will reduce your premiums, but remember - it will cost you more if you claim.

Motor insurance
Review your level of cover
Most drivers who choose third-party motor insurance do so because they assume it's the cheapest cover available. But that's not always the case. For many people, although comprehensive cover offers the highest level of protection, it may actually be the low-cost option.

Choosing the right excess
Choosing the level of voluntary excess on your motor policy is similar to tailoring your home insurance - the higher the excess, the lower your monthly premiums. Ultimately, it's about finding the right balance to suit your needs.

Review named drivers
Adding additional drivers to your motor policy will push up the cost, right? Well, not necessarily, because in some cases, insuring multiple drivers can work out cheaper. And so long as you provide accurate information about who is the main driver, it's perfectly legal.

Avoid modifications
Engine or suspension modifications can have a significant impact on the cost of your car insurance. And even cosmetic changes like adding alloy wheels or spoilers can push up premiums - so those shiny new wheels could end up costing you more than you paid for them.

Drive carefully
If you don't currently enjoy full no-claims-discount, you'll already know how much driving errors can cost you. In fact, retaining and maximising your no-claims-discount is just about the best way to lower your insurance costs. So drive carefully, obey the highway code and stick to the speed limit, because speeding points can increase your premiums too.

And finally... always provide accurate information
When you're getting a quote for home insurance or motor insurance, always make sure that the information you provide is correct and accurate. Inaccurate information could leave you under-insured, for example, if you have a high-value artwork in your home that exceeds your single item limit. Or if you have points on your driving licence that you don't declare, it may invalidate your cover.

Article published on 12 March 2018

David Reeves

About the author

David Reeves is one of the Senior Marketing Managers here at Police Mutual. He is based in the General Insurance office in Liverpool and likes running and walking in his spare time.

Read more of David's articles