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Insurance premiums are always rising, so it’s crucial to review your coverage to avoid overpaying. Whether it’s auto, home, travel, or health insurance, trimming unnecessary coverage can lower your premiums. Using these tips, tailored for different policies, can help you save money.
1. Insurer Assumes You’ll Automatically Renew
Most of us run a quote through an insurance comparison site when the renewal premium comes in. We may find cheaper options, but renewing elsewhere means more paperwork and canceling direct debit payments.
It’s worth contacting your current insurer and informing them of your cheapest alternative quote. They may match the figure or even reduce their renewal premium.
2. Mileage Allowance Is Too High
Most auto policies now have annual mileage limits, which are worth monitoring. Are you paying for a 10,000-mile allowance when you only need 8,000 or less?
You must be honest about any aspect of your driving record, including mileage, but having a genuine cause for reducing these limits can save money.
3. Paying by Direct Debit
Many sectors of eCommerce offer discounts to those who pay by direct debit, but the insurance industry is an exception. Most insurers charge customers more to spread their payments over 12 months.
If possible, consider paying all of your premiums upfront. It’s not always an option for those who budget every month, but it can be a valuable money saver.
4. Duplicated Extensions
Look at all your insurance policies to see if there is any duplication in coverage. Many companies offer legal expenses as an add-on, which can be beneficial.
If your home, health, and auto insurance have a legal expenses section, you’re paying more unnecessarily, so consider deleting at least one of those policy extras.
5. Unnecessary Rental Car
Auto insurance policies often provide a rental car if your primary vehicle is involved in an accident and off the road. Most insurers offer this as a free benefit, but some charge for it.
If you have a second vehicle in the family as a backup, you may not need this extension, so check your coverage and see if you can save money here.
6. Winter Sports on Travel Coverage
When you take out an annual travel policy, your insurer will ask about any extreme sports you may be involved in. Winter sports is a common chargeable extension, and you need it if you intend to go skiing.
You also need to declare mountain biking and other potentially dangerous sports. If you give up the skis or the bike at a later date, remember to remove the extensions to avoid unnecessary premiums.
7. High-Value Item Limits on Home Insurance
If you don’t own high-value items like jewelry, cameras, or other tech, look at the personal property section of your home insurance policy. Companies pay out more frequently in this area, and the claims are higher, so the premiums are higher, too.
Consider whether your personal property section can be reduced to save extra funds.
8. Is Your Gadget Insurance Necessary?
An entire insurance industry has developed around mobile phones and other tech devices. Insurers have policies set up specifically to cover gadgets, primarily in the event of theft or damage.
These can be useful, but your home contents insurer may already provide identical coverage. Be sure to check on this point since you don’t want to pay twice to cover your tech.
9. Overpaying for Vehicle Usage
How you use your car can affect your auto insurance premiums. Essential social and domestic use will likely also allow you to commute to a fixed place of work. If you use your vehicle for business purposes, an extra charge applies.
If you don’t use your vehicle for work, remove the business clause to avoid being charged unnecessarily.
10. Unsuitable Insurance for Classic Cars
Regular car insurance will likely be unsuitable if you have an old classic vehicle. Insurers charge regular premiums based on engine size, zip code, and other typical factors.
Specialist classic car policies are cheaper, but there are rules to follow. The vehicle in question must be your second car, which should be of a particular vintage, usually at least 20 years old.
11. Duplicate Life Coverage
Before you take out a standalone life insurance policy, check the terms of your employer’s contract. Some organizations supply a death-in-service benefit, which will likely cover your obligations.
A life policy with a high level of coverage may not be necessary. Consider a smaller sum as a top-up, or you can rely on your employer if the figures are sufficient.
12. Worthless Roadside Assistance Coverage
Coverage for roadside assistance is often added to a regular auto policy. The first point to check is whether this is a duplication of cover you may have elsewhere. If so, delete the add-on to save some money.
Even if your auto insurance doesn’t include breakdown coverage, it’s worth considering alternatives. Specialist breakdown policies may be cheaper and more comprehensive. Check your cell phone contract and credit card to see if either offers this service.
13. Coverage for Accidental Damage
Basic home insurance covers theft and malicious damage. To extend this type of policy, homeowners need to add accidental damage, which is extra.
Accidental damage is a handy addition to any policy, and you should think carefully before deleting it. If you have no young children or pets in the home, the risk of accidents is reduced, and it may be worth taking it out to save money.
14. Policies With Separate Insurers
As part of their marketing campaigns, many insurers now offer multi-policy discounts. If you have more than one car in the family, keeping them insured with different underwriters may prove more expensive.
Certain insurance companies also offer reduced premiums for putting auto and home policies under one roof. Consider these multiple options the next time you renew.
15. You Haven’t Updated Your Personal Circumstances
Since 2020, more people have been working from home, and the fact that our properties are occupied for extended periods makes them less of a risk factor. If you’re a remote worker, it is a good idea to speak to your insurers to see if that reduced risk lowers your premium.
The same applies to those recently retired or taking an extended break from work.
16. Ignoring Insurers Who Aren’t on Comparison Websites
Some insurance companies choose not to list their premiums on comparison websites. They have to pay commissions to those sites when individuals buy a policy, which is a way of cutting costs.
The theory is that the savings they make are passed on to the customer. There’s no guarantee that they will provide you with cheaper premiums, but it’s worth checking them out.
