How do I choose insurance without overpaying?
Comparing insurance on cover rather than price, the exclusions that matter, and why auto-renewal costs money.
- Difficulty
- beginner
- Time
- 1 hr
- Read
- 2 min
Short answer
Compare cover and excess as well as price — the cheapest policy is often cheapest because it covers less. Never auto-renew: renewal quotes are routinely higher than new-customer quotes for identical cover. Check the excess and the key exclusions before the price.
Insurance is bought on price and claimed on cover, and the two rarely get compared together. A policy that is cheaper because of a high excess or a significant exclusion is not cheaper if you claim. This is general information rather than financial advice.
Step by step
- Work out what you actually need covered before looking at prices.Write down the specific things you want protection against. It makes the comparison concrete.
- Compare the excess alongside the premium.A low premium with a high excess may cost more overall. Both compulsory and voluntary excess apply on a claim.
- Read the key exclusions.Insurers publish a summary document listing what is not covered. It is short and it is where the surprises are.
- Check the cover limits for individual items and categories.Home contents policies often cap single items and categories like jewellery or bikes. High-value items usually need specifying.
- Check whether cover extends where you need it.Items away from home, in a shed or garage, or abroad are often separate options rather than included.
- Never let a policy auto-renew without checking.Renewal quotes are routinely higher than new-customer quotes for identical cover. This is the single largest saving available.
- Use two or more comparison sites and check directly with providers.No single site covers the whole market, and some insurers do not appear on any of them.
- Set a calendar reminder a month before renewal.It gives time to compare properly rather than deciding under a deadline.
Tips
- Paying annually rather than monthly is usually cheaper, because monthly payment is often a credit arrangement with interest.
- Avoid duplicate cover — bank accounts, credit cards and existing policies sometimes already include travel or gadget cover.
- Being honest on an application matters. Non-disclosure is a common reason claims are refused, and it is not worth the saving.
Common mistakes
- Comparing on premium alone — Excess, cover limits and exclusions determine what you actually get. The cheapest is often cheapest because it covers less.
- Letting a policy auto-renew — Renewal pricing is routinely higher than new-customer pricing for identical cover.
- Not declaring relevant information — It is a common reason claims are refused, which makes the policy worthless at the point it matters.
Questions people ask
Why is my insurance renewal more expensive than a new quote?
Renewal pricing and new-customer pricing are set differently, and existing customers are frequently quoted more for the same cover. Shopping at every renewal is the standard response.
Is a higher excess worth it?
It lowers the premium, but you pay it on every claim. The question is whether you could comfortably cover the excess if you needed to claim tomorrow.