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The best time to buy home insurance revealed – and you could cut 20% off your bill
If you leave buying home insurance to the last minute then you'll end up paying 20 per cent more than if you're prepared
BUYING home insurance three weeks ahead of your renewal date could cut 20 per cent off bills, according to MoneySavingExpert.com
The money saving website has found that insurers ramp up the prices as the deadline for getting insurance draws closer.
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It analysed more than three million quotes from January to June this year using data from the four biggest comparison websites - Confused.com, Compare the Market, GoCompare and MoneySupermarket.com.
They found that signing up for a new deal 21 days before you need a new policy would cost £148 on average but miss this slot and you could end up paying £180 a year - over 20 per cent more expensive.
Insurers claim that the more prepared you are with renewing your insurance the lower risk you are a customer.
Gary Caffell, money editor at MoneySavingExpert.com, said: "We've long known about the complex way insurers work out your premium, but knowing exactly when to pounce to bag the cheapest price on your home insurance is a game-changer.
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"So don't wait until the last minute, plan ahead and use the sweet spot we've found to find the cheapest deals."
Last week, MoneySavingExpert revealed the best day to buy care insurance was also 21 days before the policy starts.
Did you know that joining a neighbourhood watch group could cut the cost of your home insurance by 5 per cent.
How to cut the cost of home insurance
IF you're looking to cut down your home insurance bill, follow our tips:
- Buy 21 days in advance - Purchasing a policy three weeks in advance can cut your bill in half. Buy 30 days in advance it could cost you hundred because there aren't as many policies out there. Taking out a policy too late and insurers will deem you a higher risk and whack up your premium.
- Never accept a renewal quote - Your policy could double overnight if you're not careful. Make sure you put a reminder in your phone of when it's up and shop around for a better deal.
- Check more than one comparison site - These sites offer different deals so it's best to look at more than one site at the 21 day mark to see what they can offer.
- Check Direct Line and Aiva separately - Two of the biggest companies aren't on comparison sites so you'll need to check them too to see if they can offer you a better deal.
- Don't wait for a renewal - If you find a better deal elsewhere, you can cancel your existing policy and get a refund for the rest of the year. There will be a fee though - usually £50 - so take that into consideration when you look at how much you can save.
- Increase your excess - If you choose to pay a higher excess, you’re premiums will drop. Be warned though – if you have to claim, it’ll cost you more, so don’t sign up for anything you can’t afford.
- Pay annually - Monthly instalments mean you can spread the cost of insurance, but they come at a cost. Pay in one go to save more. This trick works on your car insurance too. We found you can save as much as £440 a year by paying car insurance bills annually.
- Split it up - Sometimes it can be cheaper to go to different providers for your buildings and contents insurance. Check to see if splitting can save you money.
- Lock up - Keeping on top of security and maintenance often leads to lower premiums. Easy steps such as installing burglar alarms, fitting secure locks, and joining a neighbourhood watch can all lead to lower premiums.
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