Everyone know’s not to accept the renewal price from your current provider on your car and home insurance. After mortgages, this is the most common area to save money by requesting other providers. According to the AA, On average you will save £214 by shopping around, while home insurance cover tumbles from £368 to £227. It is so easy to get quotes on the internet, and if you don’t spend at least one lunch hour a year finding a better deal then saving money is not important.
1. Claim back Loan protection insurance
Pricey and poorly sold, payment protection insurance is one of the most profitable types of insurance ever devised by the finance industry. It can add £3,000 to the cost of a £7,500 Personal loan. Many people who were sold ppi could’t claim on it against it these people are abel to demand their money back again.
Lots of claims companies advertise on daytime television, promising to obtain you a refund but they will take 25% of whatever you win. Instead, try the freetouse Financial Ombudsman Service which is currently upholding around four out of five complaints about being missold PP . Helpfully, it offers a factsheet on how to make a complaint about PPI which you can find at financialombudsman.org.uk
2. Cancel your mobile phone insurance
Naive youngsters are strongly pressured in phone shops into spending between £60 and £70 a year on this insurance cover. Airtime abuse is not covered which is the greatest risk (where the phone is stolen and used to make international calls), and if you lose your phone you can always claim for it under your home contents cover for personal belongings.
Mobile phone insurance is easy to cancel just stop the direct debit.
3. Rethink your life insurance
You don’t have to keep you life insurance policy for the whole of the policies term. Just because the life cover was sold to you when you took out a mortgage doesn’t mean you have to stick with that provider for the life of the mortgage. the policy can be canceled at any time to get a cheaper deal. With the avergae age of death improving (ie. fewer people dying), life insurance companies have been reducing premiums for many years.
If you are in a job at a big employer, it is likely to offer “death in service” benefit worth up to three times your yearly salary, and often more. Do you really need all that life insurance cover on top as well?
4. Don’t pay for travel insurance you don’t need
Step 1 Obtain a European Health Insurance Card (EHIC) from ehic.org.uk or at your local Post Office. This has replaced the old E111 forms and gives you reducedcost or free medical treatment in EU countries and Iceland, Liechtenstein, Norway and Switzerland. You may even obtain treatment faster, as you won’t have to rely on a hospital waiting to receive authorisation to treat you from an insurer.
Step 2 Check your home insurance policy. Many have clauses which already cover personal belongings (ie. your suitcase) outside the home.
Step 3 Check your medical cover policy, if you have one. These requently cover the costs of treatment incurred abroad. For most holidaymakers, who travel to southern Europe once a year, the only real benefit that travel insurance cover brings is cancellation cover. Can you justify paying the premiums?.
For those who travel outside the EU, travel insurance is a must, though. Policies that last for a year and cover you for more than one trip always make sense if you go away more than once a year make sure you are only paying for what you actually need. For example, cover for winter sports.