Top ten ways to save up to £1,000 on your car and home insurance premiums

Household bills are rising due to the Cost of Living Crisisbut you can save hundreds of pounds on auto and household insurance if you know how

The cost of energy, groceries, gas and more has risen — and insurance is no different.

In fact, the cost of car insurance is now at its highest level since the last quarter of 2020, according to consumer organization Which?.

Jenny Ross, of which?, said: “After a prolonged period of comparatively low premiums, insurance costs are rising and putting more pressure on household budgets.

“However, there are steps you can take to minimize those costs and ensure you get the best deal possible.

“It’s always worth poking around or haggling for a better deal and consider getting a black box policy to keep costs down, especially if you’re a younger driver.”

If you know a little bit about how the insurance system works, you can take huge sums off your bills and save money at an important time.

Don’t auto-renew – and save £49

Drivers who allow their car insurance to auto-renew pay £49 more per year than those who switch.

Price comparison website MoneySuperMarket found that millions of drivers may be overpaying for their auto insurance at a time when premiums are rising.

Switch providers and save up to €120

If the contract has expired or is nearing its end, customers should consider switching providers to save money.

Compare the Market research analyzed both the average bonuses and the cheapest bonuses offered to drivers.

It turns out that the cheapest quotes rose by £42 to an average of £568 in the first quarter of the year.

It concluded that this means drivers could save up to £120 by shopping around to find a better deal.

The savings increase dramatically for drivers under the age of 25, who could save an average of £257 off their premium.

Use price comparison sites – and check out the insurers that aren’t on them

There is usually a big difference between the cheapest and the most expensive insurance policies.

Which? suggests that consumers seek the best deals available by using price comparison websites to compare different products and ensure they are choosing the best for themselves.

It is worth noting that some insurers are not represented on all comparison sites.

For example, Direct Line insurance is only available direct and NFU Mutual does not sell online at all.

Be realistic about the deductible you set

Consumers should ensure that they set the correct excess amount in their policy.

Setting a high deductible can lower premiums, but setting it too high can make claims unnecessary or too expensive.

For example, a customer claiming their car insurance must pay both the mandatory and optional excess. So if their mandatory deductible is £250 and their optional deductible is £500, they would have to pay £750.

Sometimes consumers can save money in the long run if they choose not to make a claim through insurance and pay for repairs out of pocket (although you should still notify your insurer of the incident).

This is because a claim settlement could result in a deductible, reduce no-claims bonuses and lead to a premium increase.

Upgrade home security for cheaper insurance

Customers are more likely to get cheap home insurance if a provider classifies them as a “low-risk customer.”

Before you start looking for an insurance policy, which one? suggests customers improve their home security by adding security locks to exterior doors and locks to accessible windows, as most insurers have a minimum level of security before accepting new customers.

Households could get even better deals by going the extra mile and installing an intruder alarm system or five lever mortise lock.

Which? asked burglar alarm system owners who also had home insurance if they had saved money by taking out such a premium, and 43% agreed that they had.

Choose the right job title

Job titles can affect the cost of car insurance.

When looking for the best policy, consumers should check that there is a choice of labeling when entering their occupation, for example calling themselves “writer” rather than “journalist” as this can sometimes affect their premium .

However, drivers must ensure that the occupation they declare is an accurate description of their circumstances.

False information can result in insurers terminating the policy or refusing to pay claims.

Customers should contact the insurer directly if they are unsure how to answer specific questions.

Bargain to save £50 on your car insurance

For those who would rather stick with their current provider, which one? recommends haggling to get a better deal.

Customers can leverage cheap home insurance deals found elsewhere with their provider.

Which? found that customers who haggle pay less than those who don’t and in a recent survey, those who haggled reported an average discount of £50.

Rethink add-ons and save £50

Car supplements can add up to £50 or more to some premiums. Common add-ons can be legal protection insurance, accident protection, breakdown protection and key protection.

Motorists may already have these included in a bank account package, while key covers may be included with some home insurance policies. Drivers should consider what they need and don’t need and check the policies they already have to find out what they are covered for.

Consider getting a black box – younger drivers could save over £1,000

Black box insurance policies, also known as telematicsCalculate premiums based on how drivers drive.

Insurers can monitor how well and how often drivers drive to provide a more accurate price and reward drivers by discounting their premiums.

Some insurers also offer mileage-based policies that track drivers’ mileage.

A Compare the Market report found that telematics plans are cheaper than standard auto insurance for 78% of drivers aged 17-20 and 69% of those aged 21-24.

The price comparison site revealed that the average telematics quote for a driver aged 17-20 was £1,811, a saving of £1,137 over the cheapest standard car insurance.

It pays to compare quotes from these providers to quotes from more traditional motor insurance companies.

If a driver only needs to drive a car for a short period of time, they should consider temporary auto insurance or a policy with an ongoing monthly contract that can be canceled without significant fees.

Don’t pay for home insurance when renting a property

Landlords should buy buildings insurance, so renters only need to buy home insurance to protect their belongings.

While there are specific short term insurance policies and policies that cover a single room, which ones? suggests renters compare renter policy premiums and coverage levels to more “traditional” home insurance policies.

Tenants can also purchase building insurance through their service fee, so do not need to purchase insurance separately.