Five ways to cut your insurance costs this year
Despite predictions of a global economic recovery, 2010-11 will still be a hard couple of years for many of us financially. This is a time for belt-tightening, budget-cutting and hard-headed saving – and one area in which you can cut costs without feeling the impact on your lifestyle may be insurance expenditure. Here are five ways in which you can stay covered while budgeting with the best of them.
Cut unnecessary expenditure
Many people spend hundreds of pounds every year on insurance cover that they don’t actually need. This year, consider reviewing your various insurance policies to judge whether they are really necessary. For example, identity theft insurance, which covers losses through identity fraud as well as access to your credit record, is often expensive. It is also frequently unnecessary, as most banks cover you for fraudulent activity that has occurred for no fault of your own – and it is possible to view your credit record for as little as £2 a time.
Check your cover
During times of economic hardship, it’s particularly important to make sure that you’re getting exactly what you pay for. In the case of insurance, this means checking your policy for exclusions and reviewing the fine print of your contract to find out exactly what is covered. Remember that failing to update your insurance company – when it comes to modifications to your home or car, for example – can render your insurance cover invalid.
Up your security
Two of the most crucial and expensive types of insurance are car and home cover. However, you can reduce your insurance premiums in both these areas by increasing the security of your home or car. Consider fitting an immobiliser to your car and installing burglar alarms, window locks and smoke alarms in your home. You might be surprised by how much such small changes can reduce your premiums.
Shop around
Those with insurance policies that are up for renewal soon should begin looking around for better deals. Shop on price comparison sites and request quotes from specialist providers such as Kwik Fit home insurance to get more for your money. It’s also worth remembering that many companies offer discounts for buying online, so it is generally worth making the actually policy purchase on the web.
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