Cash advice

It may not be the most exciting topic, but it’s important we’re insured in our homes, on the road and when we travel. Here, the Financially Fabulous Money Team give us their top tips on saving money when it comes to insurance…

1 NEVER AUTORENEW

Loyalty doesn’t pay when it comes to insurance. Always shop around when your policy ends, even if it’s just a case of getting a better deal from your current provider. Put your details into comparison sites, such as gocompare.com and moneysupermarket.com to find the best deals. You can save extra cash by buying insurance through cashback sites like topcashback.co.uk and quidco.com, too – typically around £40-£50.

2 MONTHLY DOESN’T PAY

Unlike other bills where you get savings for paying by direct debit, paying monthly for insurance can cost around 30 per cent more. Paying the annual premium in one lump sum, if possible, is often cheaper.

3 BE ORGANISED

Research shows that insurance goes up and down in price depending on when you buy it, and you could save around £200 by switching before your policy runs out. With car insurance, the best rates are to be had if you switch three weeks before the renewal date. With home insurance, switch four weeks in advance. Put a date in your diary for next year so you can do the same!

4 SAVE ON TRAVEL

Never go with the travel insurance offered by your tour operator. There are better deals online. If you travel twice or more a year, it’s cheapest to get an annual policy. It used to be difficult to get insurance if you had pre-existing medical conditions, but now a number of insurers will cover you, such as Staysure and AllClear. Car hire companies are notorious for over-charging on insurance, so organise it before you go away. Try insurance4carhire.com or icarhireinsurance.com.

5 TWO’S COMPANY

Adding another experienced driver, such as an adult child or a partner, to your car insurance policy can often bring down premiums. How much you save will obviously depend on your situation, but it’s always worth checking.