Finding Cheap Contents Insurance Online
How you can reduce the costs of your home contents insurance premiums
Sum-insured policies base what you pay on the sum insured – so the bigger that is, the more you pay – while with bedroom-rated policies the insured amount is based on the number of bedrooms. With both types of policy, the amount you have to pay varies according to where you live – it is usually based on your contents insurer’s record of claims for your postal district: the more high-risk the area, the more you will pay. Short of moving to a low-risk area, there is not much you can do about this – but you can cut costs in other ways.
• Shop around using contents insurance price comparison websites and compare contents insurance quotes and covers from various online providers. You can do that from here!
• Reduce the sum insured
If you own things that you would not necessarily want to replace – e.g. LPs, shelves full of paperbacks you are never going to read again, white-elephant wedding presents – you may be tempted not to include them in your calculations. This is not a good idea since the sum insured must represent the total value of your possessions, irrespective of whether you would replace every last item. However, some insurers may be willing to specifically exclude certain items provided that you both agree to this (preferably in writing) when you take out the policy. There is no guarantee that your insurer will agree to your own personal exclusions, but it is worth a try – especially if you own a lot of things which are of little value second-hand but which would cost a lot to replace as new.
• Take security precautions
Fitting secure door and window locks is a sensible precaution against burglary wherever you live and many insurers will reward you with discounts for being security conscious, maintaining a regularly serviced burglar alarm or belonging to a Neighbourhood Watch scheme. If you live in a high risk area, your insurer may insist that you install five-lever mortise locks on external doors and key-operated window locks on vulnerable windows before it will agree to cover you against theft. If taking security measures is a condition of insuring you, the discount may not be on offer.
• Act your age
One of the advantages of growing older is that you can pay less for contents insurance (insurers believe that the older you are, the greater care you take of your possessions). Many insurers will give discounts to people over 50 and some award discounts to the over-45s. On the other hand, some insurers penalise people under 30 by charging them more. If you live with an older person make sure that they are included under a joint names policy. Having an older partner will mean you pay less.
• Pay more towards your claim
Most insurers require you to pay the first part of any claim – called a ‘compulsory excess’. If you offer to pay more towards each claim (a ‘voluntary excess discount’), the cost of your insurance will go down.
• Avoid claiming
An increasing number of contents insurance companies now offer discounts if you can show that you have a claim-free record. If you know that you have not claimed on your contents insurance in the last couple of years or so, it is worth asking whether a no-claims discount is available. Most online application forms will as your claims free period and either exclude you or include the discount in the contents insurance premium calculation.
• Avoid accidents
Cover against accidental damage to your contents pushes up the price of your contents insurance because there is a greater likelihood of your claiming.