How to ensure peace of mind for a happy new year26 December 2004
To help cut down on monthly outgoings, there are many things we can do to reduce the cost of insurance.
Buying insurance is simply buying peace of mind, and it is important that we take out the right cover for our needs should things go wrong.
However, according to the price comparison website insuresupermarket.com there are ways of making it cheaper.
In the first instance, shopping around can bring annual savings of more than £70 on home, motor and travel insurance, and making additional changes to cut out unnecessary extras can save much more again - on average £680 in a year.
By making a decision that you will only ever use your insurance for the major disasters in life, you can trim costs down to a manageable level.
It means that should the worst happen, you will be covered - and that’s what insurance is really for.
The first way to cut down on costs is to consider paying annually for home insurance. Some insurers charge up to 30% APR to pay monthly, so you can save just under £20 on average.
Adding security to your home by fitting approved door and window locks, installing an alarm and increasing your voluntary excess on the policy as well could save you a further £24.
When it comes to car insurance, halving your mileage, by car-sharing or telling your insurer if you only use the car at weekends, can save you £32 on motor insurance, while increasing your voluntary excess to £250 could give you a further saving of £46.
If you are a younger driver, adding an older driver to your policy can cut premiums and save you £15.
Savings can also be made on life insurance. By giving up smoking men can save £66 a year on their life insurance and women £46.
Think twice before accepting standard payment protection deals offered by existing lenders. These are often not the best value for money. You could save £35 a month - or £1,270 over the period of a three-year loan - by choosing the best deal from an independent provider.
If you’re thinking already about where to go on holiday next year, don’t get bullied into taking your tour operator’s travel insurance. You could save £68 on a single-trip policy and £69 on an annual policy by seeking out the best deal from an independent provider.
Buyer beware
THE sales season is about to start in earnest. But many shoppers don’t realise the hidden costs of bargains when they use credit or store cards.
Clydesdale Bank has found that almost three out of four shoppers (73%) have not budgeted for the sales.
Instead, one in four (26%) are planning to put everything on a credit card, one in six (17%) on a store card. A quarter (26%) intend opting for the store’s finance package rather than saving up or arranging a low-rate personal loan.
Despite the five increases in interest rates imposed since November 2003 to slow down consumer spending, people are still willing to pile more and more credit on to their plastic or opt for high-interest loans without shopping around.
Store cards are the biggest rip-off. According to Moneyfacts, rates can range from 12.9% from IKEA Homes to a whopping 29.9% from Comet and Toys-R-Us.
With personal loans bombarding us from all areas of the media, it is difficult to see why people want to continue with this expensive form of credit.
Finance deals are great if you take advantage of any interest-free period, but Clydesdale has also found that when taking up these offers, 7% of consumers missed the expiry of the 0% period and ended up paying far more than they originally intended.
Source: Scotland on Sunday
All trademarks and copyrighted information contained herein are the property of their respective owners.
Related Articles
|
