10 ways to slash the cost of insurance

House insurance and car insurance can be overpriced, and it is well worth shopping around for the best deals. Although house insurance is not a legal necessity, every homeowner should have cover to give them peace of mind. Car insurance is very competitive and by comparing different prices, you can find the best deals on the market. Ten top tips to help reduce the cost of insurance include:

1. Get rid of PPI

Payment protection insurance (PPI) has been sold alongside loans and mortgages for many years. It should help to cover repayments if the borrower becomes ill or suffers an accident or redundancy and can no longer make his payments. Hundreds of cases of mis-sold PPI however have come to light in the past few years, and the policies are often riddled with exclusions. Adding PPI can increase your repayments considerably, so think carefully before you accept it and if it is already part of the deal and you don´t feel you need it, contact your borrower to cancel it.

2. Mobile phone insurance

Mobile phone insurance can set you back £6 or £7 per month, but most home contents insurance already provides cover. Look out for exclusions to mobile phone insurance which may not allow you to claim if you leave your phone in a restaurant or pub for example. Also, check out the excesses, and you may find you are better off without the insurance.

 3.  Identity theft

Identity theft is a worry, but it is not the major problem that most financial services providers have made it out to be. Premiums for ID theft insurance can cost up to £10 per month, which can cover fraud and access to your credit record. It is worth remembering you can order a copy of your credit reference from Equifax, Experian or Callcredit for just £2 and banks cannot hold you liable for fraudulent activity as long as you have not acted negligently.

  4.  Don´t be pressured?

Utility companies may try to persuade you to take out insurance policies and water companies may sell cover for damaged water pipes. It may well be cheaper however to take out home emergency cover instead of a separate insurance. Don´t be pressured into buying any insurance you don´t deem necessary.

5.  Take your time to shop around

By using comparison websites you can save hundreds of pounds every year. You can also check out the level of cover you will receive, as the cheapest deal may not necessarily be the most comprehensive. Some insurers don´t appear on comparison sites, but you can still contact them directly for a quote.
 
6.  Buy insurance online

If you want to buy from one particular insurer, do so online. Insurance policies are almost always cheaper online as it cuts down on work and paperwork for the insuring company.
 
7. Car theft and tracking systems

Reduce your car insurance premiums by always using a garage, and consider adding extra security to your vehicle, including tracking devices and immobilisers.  Fancy extras and alloy wheels can actually increase your insurance premiums as they attracts thieves.
 
8. A safe and secure home

Make sure your house is as safe and secure as it can be and fit smoke alarms throughout and a fire extinguisher in the kitchen. You should also install a burglar alarm and use five-lever mortise locks on external doors and key-operated locks on windows. Also insulate your pipes to avoid frozen pipes in winter and subsequent flood damage. These measures will reduce your insurance premiums significantly.
 
 9. Holiday insurance cover

Book your holiday travel insurance through an online specialist, as travel agents and currency providers usually charge much more for much less cover. It
may be worth your while to use a multi-trip annual policy if you take more than two trips a year. If you are over 50, look for a specialist insurer who will give you comprehensive cover at a fraction of the price of other insurers. Check out www.staysure.co.uk

 10.  Real life cover

Unemployment, redundancy, illness and injury are real problems if you have to pay a mortgage, loan or other expenses. You can insure against most eventualities, and even have everything tied into one policy. Check out the online comparison sites for prices of cover.