How to Save Money on your Insurance

These days we have all sorts of different insurances and they can end up costing us a lot of money. It is wise for us to think about whether we can save money by paying out less for insurance and so there are a number of things that we can think about and try to see if we can save money.

Is this insurance necessary? – it is worth starting by thinking about whether the insurance is necessary. Sometimes we can find that we have an insurance policy which covers us for something and that we have another which also includes cover for that. This might be hard to spot in the small print or might be in work insurance or one that is provided free with something that we are not aware of. It can be worth seeing if you can check to find out.

It is also worth checking what you have insurance cover for and whether it is all necessary. For example, you might have house insurance cover which includes bikes but you no longer have a bike. Also think about the risk that you are covering and whether it is worth it, such as perhaps having an extended warranty on a £40 kettle which you pay £40 for when it would be cheaper to pay for a new kettle rather than buy the insurance. Even if the insurance was twice the price, if the kettle breaks down after four years you may be happy to buy a new one anyway. Also consider whether you need everything that is added into the policy that you may be able to opt out of such as legal cover. You may also be able to increase your access to lower the premium, you can check with your insurer about this.

Consider the risk that you are taking as well. It is likely that you will want to insure your home against fire but is it necessary to insure your phone against theft if you do not take it out anywhere with you, for example, So carefully access the risk to see if you really feel that it worth paying the insurance for items or not.

Is it available cheaper elsewhere? – it is really wise to compare the price of insurance to make sure that you are not paying more than necessary. There are lots of companies that offer insurance these days and it is very likely that if you have not switched insurers lately that you will be able to find cheaper insurance elsewhere. It is a good idea to check this every year because insurers change their prices regularly and the same company does not stay the cheapest for long.

Comparison websites will give you an idea of who is the cheapest although not all sites appear on them. You may need to look at sites that only deal direct as well to see whether they are cheaper. Also comparison websites can be biased and only list insurance companies that pay them commission so there could be cheaper ones available that they have not got listed. So try to find an unbiased site and do some research yourself as well.

Can I reduce my risk to get costs down? – it is also wise to think about whether you can make any changes which will reduce the cost of your insurance. For example for your house insurance it may be cheaper if you have windows and doors with secure locks or fit a house alarm and smoke alarms. For car insurance it could be cheaper if you park on your driveway rather than a main road, have a car alarm and have a car worth less money to replace. If you have health insurance you may be able to make lifestyle changes that could make a difference to your premium.

It can be good to speak to your insurer and check whether making these changes would make a difference to how much you are paying for your insurance. Also find out how much of a difference it will make and then you will know whether it is worth paying out the money to make these changes or not.

Should Banks be Trusted more than other Lenders?

When we are looking for loans, we will want to look for a lender that we can trust. We want to make sure that they will be fair and treat us well. This means that many of us might choose to go to high street banks or other well-known lenders. However, are we right to trust them more?

It is worth thinking about what it is that makes you trust a lender and whether you are justified in thinking that. Also you should consider whether just because you have not heard of a lender, should you ignore them even if they are cheaper? There are a few main things that you should think about.

Secure website – if you are dealing online, whether through internet banking or dealing online completely, then you will want to check that the website is secure. You will be able to see this by looking to see if the site has a padlock near to the address of the website. This indicates that the site is secure and that if you send personal data it will be encrypted so it is secure in transit. You will also need to protect yourself by making sure that you have up to date virus checkers and installed protection software such as rapport onto your PC. Emu.co.uk is an example of a secure lender.

Good reputation – You may be concerned about the reputation of the lender. If you have heard a lot of bad things about them, then you may worry that it is not a lender that you want to use. It is good to be wary as you want a lender that will treat your fairly and be true to their word. However, if you look hard enough you will find that there are bad things to be said about all lenders as not everyone will have a perfect experience. Therefore it is worth making sure that you go to a lot of sources to find out more about the lenders so that you can be sure that you get a balanced outlook.

Recommendations – it is wise to see whether you can find any recommendation for lenders. Ask friends and family and any others that you trust in order to find out more about who they use or have used in the past and whether they would recommend them or advise you to avoid using them. If you do not have anyone to ask or would rather not ask people about lenders then you can look online. There are websites where people have information about these things. On personal finance message boards people will give their opinions on this sort of thing and there may also be information on websites and blogs. Although these can be useful it is wise to have a look at them. It is not always easy to see whether they are unbiased opinions or whether they are honest. Therefore it is a good idea to look at lots of them and think about whether you feel that they are honest opinions or not.

Cost of loans – it is worth looking at the cost of the loans to get an idea as to whether you should use a lender or not. You may find that well-known banks will be able to charge more money for their loans because they have a reputation of trust. However, people tend to trust a name that they know even if they have no idea why they know the name. It could be that they just know the name because they have seen adverts for the bank or pass it on the high street and actually have no idea what they are like at all. It might even be that they heard bad things about it a long time ago but cannot remember that they heard bad things just that they have heard of it. So it could make a lot of sense to go with a cheaper lender even if you are concerned about not knowing much about them. You should be able to do some research and find out more about them to help you to decide whether you should use them or not. If a loan is significantly cheaper then you may be right to be more suspicious of them though so take care with this too.