Am I Paying too Much Insurance?

Most of us will have some sorts of insurance. If we drive then we have to have car insurance, if we have a home, we might want contents insurance and if we have a mortgage we will need buildings and life insurance. However, there are all sorts of other insurances that we might have as well such as health, pet, accidental cover and insurance on specific items that we own. It is a good idea to think about the cost of all of this insurance though. If you add up the cost of all of the premiums, it can come to a large amount and you might want to make sure that you are not paying more than necessary for insurance in general.

Do I have too many policies?

It is a good idea to start by thinking about whether you have too many insurance policies. Consider whether you really need all of the insurance that you have. The idea of insurance is to pay out when you need it so that you do not have to find a large sum of money yourself. Some insurance you must have and so you will not be able to get rid of those policies but there is some insurance which is optional and it is these policies that you need to think about.

It is good to think about what the insurance actually covers you for. Think about whether it is worth paying the amount that you do each month. Consider the risk that you are insuring and how great it is and whether you think that the insurance is offering good value for money. For example, take a look at the figures If you are paying £10 insurance a month for a phone worth £100 you will have paid for the phone completely in less than a year so it might be better to save the money instead and then if the phone gets stolen or broken you will have the money saved up to replace it. Of course, there is a risk that you might need the money before you have saved up enough.  If you are insuring a car then it might be much more worthwhile to insure it because replacing a car can be really expensive, particularly if it is a fairly new one and an expensive model.

So, look through each insurance that you have and think about whether that risk is really worth insuring or whether you would be better off saving the money.

Can I pay less for what I want?

Once you have decided which insurance policies you are going to keep, you need to think about the amount that you are paying for them. Insurance is a very competitive business and there are a lot of insurers available. This means that there is a high chance that you will be able to find an insurer that will offer you cover for less than you are currently paying. Make sure that you have a look and do price comparison on a regular basis. By switching insurers you could save a significant amount of money and might find that even with paying less you are getting the same or better cover than with your current one.

If you want to compare then it is quick and easy to use a comparison website. This will provide you with quotes form lots of insurers and you will be able to decide whether you think that you are paying too much and it is worth you switching. Do remember that not all insurers appear on these sites so you should do some additional research yourself.

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