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Save: up to $100s on your home and car insurance

Gain: peace of mind for a fraction of the cost

Cost: depends on your individual needs and circumstances

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Whether you like it or not, if you own a car or a house, you need insurance – in fact, in the case of car insurance at least, it may be required by law.  So there’s no getting away from it – and actually, it’s a pretty good idea, as unfortunately try as we might, accidents do happen.

But even though you might have accepted that you need these types of insurance policies, I’m sure you still want to ensure you get the best possible value.  If you’re anything like me, you want insurance that’s simple, affordable, but importantly that will actually pay out if you need it to (without leaving a sizeable hole in your pocket).

Thankfully it doesn’t have to be a difficult process, thanks in a large part to comparison websites such as Gocompare or Confused.com, which allow you to compare deals across a range of leading retailers.

In addition to this, here are my other top tips to get a great deal on insurance:

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1) Shop around

As I mentioned previously, you can use comparison websites to do this – or you can approach retailers directly.  It doesn’t really matter how you do it, just make sure you’ve had a good look around before you accept a premium, as providers can vary massively.

Remember to check your renewal rate carefully as well – most insurers make their money by hiking up the overall premium on renewal, and banking on the fact that most customers are so apathetic they won’t notice or bother to check it.  After the first year of your policy, you’re free to shop around and switch to another provider – so make sure you check your renewal documents carefully against other competitors every year.

2) Pay in one go if you can

If you have the money available, it’s much better to pay your insurance as an annual premium rather than monthly – as often monthly costs can work out more expensive overall.

3) Check the policy details

Cheapest isn’t always best – make sure you check the individual policy details to ensure its right for you.  One crucial thing to check is your excess – this is the amount you have to pay back to the insurance company if you make a claim.  Some insurers will offer a really low premium, but you then discover when you come to claim that your excess is $200 – not what you were expecting!  Often you can pay a small additional amount as part of your premium to lower your excess – which may be well worth it in the long run.

4) Be honest

Whatever you do, don’t be tempted to lie to get a cheaper rate – if you ever have to make a claim, the smallest extension of truth could void your policy.  Insurers are rigorous when claims are made – after all, truth be told they’d rather not pay out on your claim if they can help it.  Don’t give them that excuse – make sure you answer every question 100% truthfully.

5) Look out for other deals

Insurance companies like careful people – this is especially true in the car insurance market.  They don’t want you to have an accident any more than you do.  This can sometimes lead to some great win/win offers – for example, an increasing number of car insurance providers are now supplying customers with a ‘Smartbox’.  This clever device is fitted in your car and allows the insurer to keep track of the speed and smoothness of your driving.  Safer drivers are rewarded with regular discounts on their insurance premiums – sounds pretty smart to me!

Other offers could include bundling insurance products together – so for example, you may benefit from a discount if you buy your car and home insurance from the same provider.

If you liked this article, read about cutting the price on a new car.

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Search for car or home insurance:

Gocompare

Confused.com