Home insurance is a necessity that every house needs, but if you get the timing right when you renew you could your home insurance policy there could be savings to be had.
A new report by comparison website Go.Compare has revealed that renewing your insurance 29 days before it is due can save you up to £38 on average. Over the past year, home insurance costs have been on the rise, rising 31% between January and March this year according to Which. That’s why it’s worth keeping an eye on when it’s up for renewal to make the most of these savings.
This is also the time to work out if you are paying too much for your home insurance or have invalidated your home insurance during the cold weather.
What does this mean for my policy?
The report looked at the average median costs calculated from home insurance policies purchased through Go.Compare from 1 April 2024 to 30 June 2024. It found that when policies were renewed 29 days before they were due, insurance cost £189 on average, compared to paying £227 if the policy was renewed the day it was due.
‘There are many factors that affect the cost of your home insurance – from your address and the safety of your neighbourhood, to the size of your home, the security measures you have in place, and how old your property is,’ Nathan Blackler, Go.Compare Home Insurance expert said.
‘However, our data shows that timing when you purchase your policy could also have an impact on how much you pay.
‘Our latest research shows that policies bought 29 days in advance of your renewal could offer the best value for money, costing £38 less on average than those bought same-day.’
Why is it cheaper?
‘GoCompare saying that the cheapest time to renew your home insurance is around a month (29 days) before its renewal is due has everything to do with insurers’ perceptions of you as a responsible homeowner,’ says David Joyson, Chief Customer Officer at Homeprotect.
‘That’s because sorting it in advance gives providers the impression that you are someone who is organised, looks after their finances and home and doesn’t leave things until the last minute.’
Another key factor to consider is that by giving yourself more time to renew, you have more time to shop around for different insurance policies.
‘If you have additional lead time, you might benefit from having a greater number of insurers available to return quotes for you, says Nathan.
‘Additionally, we advise using a trusted comparison site when you’re ready to find a new policy – doing this will ensure you are seeing all the options available, and getting the best bang for your buck.’
What else can I do to save money?
As well as renewing your policy early, there are other measures you can take to stay ahead of the rising curve of insurance costs.
Nathan recommends fitting insurer approved safety measures and finding the best security measures for your home.
Meanwhile, David suggests dedicating time to selecting the right policy for you.
‘Only purchase additional cover options if you think you need the extra protection. For instance, accidental damage coverage can be beneficial if you have pets or young children, or frequently undertake DIY projects,’ he says.
‘Spend time accurately pricing up the cost of replacing your belongings as-new and according to today’s prices before investing in contents insurance.
‘Over-estimating could result in you paying too much, whereas under-estimating could see you lose money on your personal items if you needed to make a claim.’
The best thing you can do is look into your renewal sooner rather than later – it may sound like a boring task but it is important – and it can save you money in the long run.
Read the full article here