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Insurance Cuts for Frugal Living

11 January 2011

As many Brits continue to look for ways of saving money in 2011, 54 percent have started to look for cheaper insurance policies, new research reveals.

According to Allianz UK research, 70 percent of the population intend making financial cuts to their outgoings to achieve financial security.

With 54 percent looking to reduce their insurance costs as a result of the recession, 29 percent have already achieved this by switching to a better deal on their car and home insurance.

A further nine percent have reduced their individual item cover to save them money, and nine percent have removed the extras included on their policies, such as legal cover and courtesy cars.

Seven percent have also reduced this outgoing by increasing the voluntary excesses they are required to pay when making a claim.

“It is understandable that those who control the purse strings are looking at ways to save money,” commented Gareth McChesney, Allianz UK home and motor portfolio management head.

The research showed the top five cuts to outgoings in 2011 will be, for 74 percent, their entertainment budget while bills, for 51 percent, will be reduced by switching provider.

The household food budget will be cut for 41 percent, travel costs for 31 percent, and 29 percent intend on reducing their internet/phone/TV packages.

How to Reduce Your Car Insurance Costs

If you are looking to cut the cost of your car insurance policy, look at how much cover you currently have and investigate how much other providers charge for a similar service.

Many people are extending the voluntary excess they pay when claiming on their insurance, as this can reduce monthly payments.

If you remove the extras, such as courtesy cars, make sure you will have a way of getting around following an accident.

Look for discounts some providers offer, these can be acquired if you apply online to their policy instead of through the post.

If you remove car parts which are intended to make the vehicle faster, as these are viewed as making the car more likely to be involved in an accident, this could also reduce your payments.

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