Review your insurance policies for better deals

Insurance is one of very few products where staying loyal reliably costs you money. When you review your insurance policies rather than letting them auto-renew, you are usually addressing two separate problems: a price that has crept up annually, and coverage that no longer matches your actual life.

Why review your insurance policies for better deals is worth an hour

Renewal pricing frequently assumes inertia, so the quote you receive is not the quote a new customer would get for the same policy. Meanwhile the coverage was set when you bought it, and circumstances have moved: a car worth less, possessions worth more, a policy still covering someone who moved out. Both are correctable in one sitting.

How to review your insurance policies for better deals step by step

1. 1

   Gather every policy and its renewal date

   Home, car, travel, life, pet, gadget. Note what each covers and what it costs now versus last year.

2. 2

   Check for duplicate cover

   Bank accounts, credit cards and employers often bundle travel or gadget insurance. People routinely pay twice without knowing.

3. 3

   Recheck the sums insured

   Contents cover set five years ago is probably wrong in one direction or the other. Both directions cost you money.

4. 4

   Compare before renewing, not after

   Quote roughly three weeks ahead of renewal, which is often when pricing is most favourable. Auto-renewal is where the cost accumulates.

5. 5

   Use the quote as leverage

   Existing insurers frequently match a cheaper offer if you call. That call is usually the highest hourly rate available anywhere.

Tips to get more out of it

• Read what the excess actually is. A cheaper premium with a much higher excess is not necessarily cheaper.
• Check the exclusions on anything you rely on. Discovering an exclusion at claim time is the expensive way to learn it.
• Set calendar reminders three weeks before each renewal date so the comparison happens before auto-renewal does.

Ways to mix it up

If your policies are already competitively priced, spend the hour on the coverage side instead and check whether income protection or life cover gaps exist, which matter far more than premium savings. If you have had a life change recently, prioritize updating those policies over shopping around.

Review your insurance policies for better deals: frequently asked questions

This guide is general information, not professional financial advice. See our disclaimer.