How to find cheap insurance

Finding cheap insurance can make a big difference. If you are paying less it means that you can free up money to pay for other things. Whether you want to pay off loans, treat yourself or top up your savings, there are lots of good reasons for seeing whether you can pay less. It is worth asking yourself a number of questions in order to work out whether you are paying more than necessary.

  • Is the insurance necessary?  – firstly, you will need to consider whether it is really necessary to have insurance for everything that you have insured. Insurance gives us peace of mind and will pay out if circumstances change and we need help. It can pay for replacing stolen goods, repairing cars after accidents, rebuilding homes after fires, health care and many other things. For some insurance, you may be able to afford to pay for the things without needing the insurance, but for others you will need it. For example, replacing a destroyed home will be unlikely to something many people can afford, however, covering funeral costs may be affordable if you save up. Therefore, you need to think about whether you are overpaying and if you could just save up money yourself to pay for some things rather than taking out the insurance for it. Do be careful not to cancel insurance that would cause you devastating debts if you had to come up with a huge amount of money to pay for something due to not having it.
  • Is there a cheaper company? Once you have decided that the insurance you have chosen is all necessary, then it is worth comparing different insurers.  They will all differ in price and so it is likely that there will be a cheaper one. However, you also need to consider that if you go with a cheaper policy it may mean that you will not get so much cover from it. Make sure that you know what cover you will get because you need to ensure that it will give you everything that you want and need. Consider what you need, but also compare with your previous insurance and think about whether the cheaper company can provide that.

Comparing companies can be quite time consuming but it can be well worth it. There are websites that you can use to compare them but beware that they are unlikely to show every insurer. However, they will still give you an idea of what prices are like and whether you are likely to be able to find a cheaper insurer. Do take your time comparing them as this will allow you to decide whether you think that they are offering good value for money.

  • Can I reduce my cover? – It might be that you are paying for more cover than you need. Sometimes insurance policies have all sorts of optional parts and it may be that you are able to opt out of things that you feel will not be relevant to you or that you feel will offer poor value for money. It can be worth discussing this with others or the customer service department to find out exactly what that cover gives you as it is not always easy to understand from the way that it is written, as often the language is rather formal.
  • Is there a cheaper way to pay? – sometimes it may be cheaper to pay insurance yearly in a lump sum rather than monthly. It might also be cheaper if you pay before a certain date or if you pay using a certain method. This is not always obvious but if you speak to the insurer and ask if there are any ways that you can save some money then they might bring your attention to this sort of thing. It could be well worth while as it will enable you to decide whether the way that you are paying is the best. 

So, as you can see, there are a number of things that you should look at regularly to make sure that you are not overpaying for your insurance. Although insurance is necessary for some things and it is very risky not to have it in certain circumstances, there are also insurance policies for many things that we may not really need cover for. You also need to make sure that the insurance is covering what you need but nothing more and that the insurer that you use is offering good value for money. It is worth planning out what you want from your insurer so that you can search the options and find out which can provide you with what you want. It can feel like a lot of work but it is worth it if it means that you can save money. Sometimes re-evaluating your insurance can save you a significant amount of money.

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