Top tips to reducing insurance costs

Thursday, December 17, 2009

Category: Personal Finance Tips

With Christmas just around the corner, many Brits will be shopping in preparation.

With Christmas just around the corner, many Brits will be shopping in preparation.  And, with a reported £1.4 million worth of online sales being made in one minute on ‘Mega Monday’,moneysupermarket.com has offered advice for making savings elsewhere – on insurance.  In fact, the price comparison website has revealed several ‘quick and easy ways to save a typical family over £1,315 on their insurance.’

Insurance expert at moneysupermarket.com, Steve Sweeney, commented: "While insurance is essential for financial security and peace of mind, it is important Brits only opt for a level of cover relevant to their needs, and at the best available price.  Many people make the mistake of over-estimating the level of cover needed on their home and car insurance for example.  At a time when we are likely to be splashing out on Christmas presents, it is important people remember that their outgoings can be trimmed by shopping around and taking several easy steps to reduce their insurance premiums.

"Across the board on standard insurance products, a family could see impressive savings of over £1,315 in 2010 - a great kick start to the New Year."

When it comes to motor insurance, moneysupermarket.com has offered the following tips:

1. It is possible for younger drivers to make significant savings by adding an older driver to their policy.
2. Search the market for the best value deal to suit your circumstances.
3. Add a partner to your policy.
4. Halve the number of miles travelled to and from work by car-sharing with a colleague.
5. Select ‘fully comprehensive’ motor insurance as opposed to third party only.

In order to save money on home insurance, moneysupermarket.com has suggested making annual payments rather than monthly, and searching the market for the best value deal to suit your circumstances. Furthermore, it has been revealed that quitting smoking can reduce the cost of life insurance.  Finally, in relation to travel insurance, moneysupermarket.com has suggested opting for the best deal from an independent provider instead of a travel agent’s standard deal.  In addition, it has been found that people who are intending to travel overseas more than once a year could save money by purchasing annual travel insurance.

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Homeowners who are finding their finances tight at the moment could consider taking out a secured loan to tie up any existing personal debts or credit cards that may have been relied upon in the past.  One of many finance options available, a secured loan for debt consolidation could leave the borrower with just one monthly repayment as opposed to juggling several.  However, when taking out a debt consolidation loan, it must be remembered that consolidating your debt may increase the amount you pay back overall and extend the repayment periods of your debts.