Insurance bills seem to escalate every year and if we do not make claims it almost seems that it is not worth having any. If we do claim the premiums rise even more and it can just seem like a huge financial drain. However, there are some ways that you may be able to save some money so you are not paying out so much each time.
It is really worth comparing prices of insurance regularly. Whether you pay on a monthly direct debit or renew yearly, you should check each year to see whether you could get a cheaper deal by changing insurers. There is a lot of competition in the market and so you could find that you will be able to save money. Changing insurers is not that difficult either and it could save a significant amount compared to staying with your current one. Do make sure that you are comparing like for like though and that the cheaper deal has the same terms as your current one.
The excess is the amount of money you are prepared to pay when making a claim. For example if your excess is £100 and you are claiming for a £500 loss then you will only get £400. The higher the excess, the lower your premium is likely to be as you will not be able to make claims for small things and when you do make a claim, you will be paying more towards it.
Check Policy Details
It is worth carefully checking the policy details to make sure that you are getting the right sort of cover. You may find that you are being covered for things that you do not need cover for or that details have been missed out that could reduce the price. Talk it all through with the company that you are with to see whether there is anything that can make it cheaper. It can even be worth asking if they can reduce it at all, especially if you have found a better quote elsewhere.
Do not Claim
The more claims that you make the more costly your premium will be. You will be able to build up a no claims bonus which could make a big difference to the cost of your insurance. Even if you do not have a bonus, you will still see your premiums going up if you claim. In fact all premiums go up based on the number of claims made the previous year so if everyone claims less then premiums should not rise so steeply.
Do not take Risks
It is wise to not take risks in life. If you drive recklessly, smoke and drink alcohol and do not keep your home in good repair, you are taking risks that could increase the cost of your insurance. If you can make some lifestyle changes so that you are not taking so many risks, then you will be less likely to cause damage to yourself, your car, your property or others. This could mean that you are less likely to make a claim and therefore your insurance will not go up so much.
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