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Cut your insurance to the bare basics and save a bomb

By Kate Naylor on September 8th, 2011 at 9:09am in Finance

If you drive you’ll probably be aware that car insurance premiums are rocketing at the moment. Home contents and buildings insurance goes up and down depending on various circumstances but it’s rarely cheap in the first place. And some insurances are easy enough to do without. See how much you can cut off your annual insurance bill by ditching policies, reducing your cover or increasing excesses. Here’s some tips.

How many policies do you have? See if any of them overlap. And check whether you can do without any of them.

Some of us are insured to the hilt, others sail along happily with the bare basics. If you’re a serial insurance buyer try to curb your enthusiasm and ditch everything but the policies you really need. Think things through; would you actually be better of self-insuring, preparing to cover the costs yourself if things go wrong? How likely is it that things will go dog-shaped and you’ll need to make a claim?

Do you really need an accidental damage option on your home contents policy? It’s one of the most expensive elements of home insurance but unless you’ve got little kids or you’re seriously accident prone, it’s not always worth the extra expense.

Does your child really need to learn to drive at seventeen? 17-25 year olds are more likely than any other age group to have a serious car accident and insurance companies have no choice but to apply massive premiums to young drivers because they’re such a high risk. Make ‘em wait until they’re a sensible, safer age before letting them loose on the roads and you can save literally thousands of pounds on their car insurance. In the meantime they can walk or get the bus and stay greener as well as safer.

Most common or garden insurance policies these days offer a choice of excesses, with a higher excess often leading to lower premiums. Increase the excess on your home, pet, car and travel policies and shave pounds off the cost of cover.

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Hey there, I'm Katie...

Katie

I live just outside Brighton, high up on the South Downs, with my fiancé Tony and our three cats.

I’m dedicated to saving money, spending less, buying wisely and generating cash from the stuff I no longer want.

Read more about Katie here >>

Hi, I'm Jenny...

Jenny

Hi there, I’m Jenny, a brand new mum living in the heart of Essex with a passion for making the pounds look after themselves!

I’m here to pass on all that I’ve learnt about baby saving, looking good on a budget and to keep you guys up to date with what's hot on the money saving blog scene.

Read more about Jenny here >>

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