How To Be A Smart Buyer Of Insurance Online
Insurance premiums went up a lot in 2023 and that trend seems set to continue into 2024. So it’s worth spending a little more time than usual shopping smartly online to ensure you get good value, especially with car insurance, but also for other needs like home, travel, and life insurance.
Where insurance companies know people struggle to afford these big rises, some have looked to keep prices low by removing some cover elements. So it’s important to look beyond just the price and question whether you might be creating a false economy for yourself in what you won’t be entitled to, should the need arise.
How and where to look
Before diving into online comparison sites, it’s important to identify your specific needs. This will help you compare plans more effectively. If you are looking for car insurance, Compare the Market has a great breakdown of insurance types here.
When it comes to researching insurance quotes, the internet is your friend, so do make use of the UK insurance industry’s many comparison websites.
Pricing is very fluid at the moment and there is a lot of competition between individual insurers and the platform themselves, so don’t assume you’re seeing the best possible price just because you’re using the one platform that advertises the most!
But we also offer a number of niche providers who may be able to offer you a better price (and donation) because they want customers whose profile your circumstances match, whether that’s because of your age, where you live, the size of your family, or what you want to insure.
Our 10 top tips for being a savvy insurance buyer
1. Be honest
It is never worth attempting to get a better price by providing false or misleading information. Insurers have sophisticated checking systems and we all have a digital data footprint that can be examined. Having your cover cancelled or claims rejected will cost you far more in the long run.
2. Be aware your job title matters
Having said be honest, there is one area where you have some important wriggle room; your job title. Insurers use lists of job titles as part of their risk analysis and there are legitimate options which can save you money. Money Saving Expert has a tool to help you do this safely.
3. Timing is important
Try not to leave buying insurance until the last minute, you will often get a better price 3 weeks ahead of your renewal date than in the last 3 days. Make sure you know your renewal dates by adding them to your Give as you Live Online account; we’ll send you a handy reminder when you’re coming to the end of your deal!
4. Avoid the cost of credit if you can
If you pay monthly for insurance, the insurer is effectively lending you the money to do so and charges you accordingly. One way of avoiding this cost is to look at using a 12-month 0% credit card just for buying insurance and then paying off the card monthly in the same timescale as the insurance
5. Speak to your existing provider about their renewal quote
Which? surveys have shown that around 70% of people who wanted to renew an existing policy were able to secure an additional discount, just by querying the quoted price by phone, without having to accept any reduction in the terms of cover. Due to changes in the law, swapping to a new provider every year isn’t the guarantee of a cheaper price than it used to be, so renewal is now a more likely option for you, especially if you’re armed with a cheaper quote from a competitor.
6. Look into a Telematics policy
Technology is playing an increasingly large role in the provision of insurance. For car insurance one of the main recent innovations has been the option to have a telematics ‘black box” in your car which records data about your usage and driving style
If this is available to you, many insurers will take this as a strong signal that you intend to be careful and price your premium accordingly. Even if it doesn’t make a huge difference in year one of a policy it may well give you a larger reduction in year two.
7. Consider what excess you can afford
Your policy’s voluntary excess is an amount set by you, as your payment towards any claim. If you know you are less risky than your basic circumstances might suggest, then you can, in effect, take that bet on yourself, increase your excess contribution and reduce your upfront costs – as long you don’t need to make a claim.
8. Look at whether a Pass Plus discount is available
Younger car drivers, especially those who have recently passed their test are bearing the brunt of insurance price rises in 2024. It’s worth comparing the cost of a Pass Plus training course against the discount you might receive from an insurer. You might save money, as well as being a more confident and safe driver.
9. Bundle types of insurance
There are various ways of combining insurance coverage to make it as cost-effective as possible. For car insurance, you can look at multi-car cover insurance if you have several vehicles in the family. Larger insurers will offer bundles of types of insurance, for example, home and car.
10. Check you’re not duplicating cover or paying for add-ons
There’s nothing more frustrating than paying for something you never needed. Check whether your bank account offers any forms of insurance as a benefit (travel and/or mobile phone insurance, for example, is quite common.
When you’re going through all the steps of preparing an online quote, make sure you’re only selecting the added options you really need.
Insurers are smart, they know we like convenience. But sometimes being prepared to fill out another form somewhere else can make worthwhile savings!
Do remember, next year’s premium for any type of insurance is ultimately in your hands. Not making a claim is the surest way to reduce future costs. Whether you’re insuring your home, car, travel, pets or belongings, keep yourself safe. And by clicking through to your insurer from Give as you Live Online, let’s do some good for charity by raising a generous free donation.
Fundraising doesn’t need to be extraordinary. Just give as you live your ordinary life.
What is Give as you Live Online?
Give as you Live Online is a FREE online fundraising platform that has raised over £30 million for UK charities just through online shopping. There are over 6,000 stores listed and over 200,000 charities available to support. Sign up, click through Give as you Live Online and raise free donations whenever you shop!
Offers, donation rates and participating stores are correct at the time of writing and are subject to change. Please visit the Give as you Live Online website for the most up to date information.
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