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Lower cost insurance

What with austerity cuts, pay freezes, rising inflation and the recent VAT hike very few people are flush for cash at the moment. So millions of people are in need of some financial help, as in, reducing your outgoings so you can afford to enjoy the nicer things in life. No one actually wants to pay bills, but unfortunately we all have to. But that doesn’t mean we have to pay a lot for them.

Insurance is something that few of us like to spend too long thinking about. When we spend any time thinking about it we quickly realise that we are giving money away just in case one day we may need some back. However, we all have insurance, car insurance is a legal requirement, but seeing as we rarely make any claims we want to make our premiums as low as possible. Here are three ways to bring down the cost of your insurance, without really doing much work.

Reduce your risk

Insurers base your insurance premium on several factors, some of which we have no control over, but many we do. The cost of your insurance is derived from the level or risk you pose to your insurer, so reduce your risk level and you reduce the cost of your insurance. For instance, if you own a car, tell you insurer whether you have a garage. Garages greatly reduce the chance of theft and thus lower your premium. You can lower your home insurance by buying a burglar alarm and joining the neighbourhood watch. You can slash your life insurance costs by giving up smoking.

Share the risk

You can lower your premium if you are willing to share some of the risk with your insurer. You can do this by increasing your excess, i.e. the amount you pay towards a claim. This means the insurer will have to pay less towards a claim so thus they can offer you a lower premium. Just make sure you don’t claim too often and when you do it is for large costly items or procedures.

Don’t pay regularly

Although paying a smaller amount on a regular basis is more convenient for some, you will pay more. Insurers charge interest for the privilege of monthly direct debits. Paying annually can therefore save you a great deal. Legal & General offer great deals on life insurance quotes and they offer a 4% discount if your pay your premium

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This entry was posted on Monday, February 7th, 2011 and is filed under All About Insurance. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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