Money Saving Expert has warned that many may still be paying too much each year.
Homeowners could save more than £600 a year by using a simple online tool. Finance gurus at Money Saving Expert (MSE) have shared their tips for keeping your home insurance costs down.
Having home insurance is a vital part of owning a property. It protects your home and its contents from damage or loss.
It can help cover the costs of repairs, replacements, or even rebuilding your home if it’s damaged by events such as fires, storms, floods, or burglary. However, home insurance can be pricey.
Luckily, home insurance prices have recently come down marginally after skyrocketing in the last few years. But on MSE, the website founded by Martin Lewis, it explained that you could still be paying too much.
“Caution! Home insurance prices down four per cent,” it said. “So don’t just renew thinking if the price stays the same it’s a good deal. It means you’re likely overpaying
“Yes, you read it right. Home insurance costs have fallen four per cent year-on-year but that’s on the back of huge rises, leaving prices still 40 per cent higher than in 2021.” A simple and free way to ensure you are getting the best home insurance deal is by using MSE’s online comparison tool.
The website said: “So always check how your renewal price compares against the market using our Compare+ Home Insurance tool and tips – don’t just settle and assume a renewal that’s the same or only a little bit up on last year is a good deal.” One member of the public was able to find a price £605 cheaper than originally quoted by doing this.
MSE continued: “Though averages are down, some insurers will still be trying to push prices up – Frank emailed us last week: ‘I’ve just saved a whopping £605.
“‘My house insurance renewal quote had increased by £295 for no reason! I followed the guides and Compare+ tool to the letter, and triple-checked everything properly just as Martin’s page told me to, and my quotes all came in under £300.
“I’ve just paid £220, as opposed to what would’ve been £825 if I hadn’t done this! Well worth this morning’s work!.”
To use the site you will need to complete a set of questions to calculate the different options available for you. However, what sets this online tool apart is the fact it also includes other tools and information to help you get the price down even more if possible.
This includes telling you if you’re too early or late for the best deal. MSE said: “While it sounds crackers, how soon you get a policy before renewal can have an up to 25 per cent impact on what you’re charged (we get this info from analysing up to 650,000 quotes). Our tool will tell you when to come back if you’re too early (don’t worry, you can save the info so you needn’t re-enter it), and if you’re too late, we’ve calendar reminders so you time it right next year.”
After analysing your data, the tool will also show you other ways to try to cut your costs further, such as:
- Will upping the voluntary excess (the amount you pay towards a claim) save you money
- Can you pay annually rather than monthly
- Can you save by combining your home and car insurance
- If you want to stick with your existing insurer… benchmark the cheapest and haggle
- Can you get cashback on the policy to lower the cost
As a caveat, MSE warned: “Make sure the policy’s right for you, and complain if you’re unfairly treated. As with any insurance, check the policy details to ensure it’s the cover you want, and that the insurer’s regulated by the Financial Conduct Authority before you buy (all on Compare+ are).
“If a claim’s unfairly rejected, you’ve a right to take ’em to the free Financial Ombudsman.” Use the online tool here to find out what you could be paying for your home insurance.
