Need an incentive to get organised about sorting your home insurance? Here’s a big one…
The further ahead you can arrange your policy, the lower your premiums may be.
Being savvy about the cheapest time to buy your cover may be a huge cost-saver. Panic-buy at the last minute and you could be losing out.
The revelations come from new research carried out by Moneysavingexpert.com. This shows that buying your home insurance roughly three weeks ahead of the start date is likely to bag you the cheapest price.
Better still, it will often cut the cost by over 20%.
It’s actually the same pattern with car insurance. A report by The Telegraph proves that on average the best time to buy motor cover is three weeks before your existing car policy expires too.
There are two reasons for this trend. One concerns the competitive pressures insurers are all under. The other concerns insurers’ interpretation of your ‘risk profile’.
The Telegraph says: “This is because insurers are likely to have to compete harder on price. They do this on the grounds that drivers have more time to shop around.”
Moneysavingexpert.com says: “It’s all based around risk. Buying it three weeks before you need it suggests you’re more careful and organised. Leaving it to the last minute means you’re seen as higher risk. Maybe you’re the sort who rushes out of the house without checking all the doors and windows are locked.”
But all the insurers basically say the same thing. Their historic claims data shows that ‘riskier’ customers tend to renew their policies nearer to renewal date.
Got a Renewal Notice? Act Now!
Most home insurance companies will send out your renewal notice 28 days in advance. You can call your provider if you haven’t had one.
And rather than sticking the notice in your ‘to do later’ pile, it’ll pay you to take action immediately to look for a better quote.
You could save several hundred pounds each year armed with this information. So don’t act at the last minute when insurers consider you to be a higher risk for not being better prepared.
Finally, Don’t Ever ‘Auto-Renew’
Home insurance customers who really take their eye off the ball are likely to find they’ve been ‘auto-renewed’.
Saying yes and letting the renewal quote from your existing home insurer roll over might seem the least hassle option. But it could end up costing you hundreds of extra pounds a year.
You’d be mistaken to think that your insurance provider is likely to ‘reward’ you for your loyalty.
The truth is quite the opposite. Insurers usually reserve their best prices for new customers. They do this in the hope that they’ll do what most people do. That’s to stick with them and put up with steady annual premium increases.
So the message is clear. Don’t ever auto-renew; don’t leave setting up your new cover until the last minute, and do shop-around.
If you would like help sourcing the best premium for your home insurance, you can contact us here. We’ll help you find a cheap and comprehensive home insurance policy for your situation.