The expert warned Brits to “always” do one thing when renewing their insurance
Martin Lewis said you should “always” take one step before renewing insurance policies(Image: Getty)
Martin Lewis has issued a crucial reminder to Britons to “always” take one particular action that could potentially slash insurance expenses by hundreds of pounds. The financial expert suggests many people may be making an error when it comes to policy renewals.
Sorting out car and home insurance renewals is rarely an enjoyable experience. The process can prove both time-consuming and exasperating.
While it might therefore seem convenient simply to autorenew with your existing provider, this approach could be unnecessarily expensive. In the most recent guidance from Money Saving Expert (MSE), the team highlighted that both car and home insurance premiums have fallen.
They said: “The good news is the cost of car insurance and home insurance are both a little more than 10 per cent cheaper than this time last year (source: pricing consultancy Pearson Ham), and cheaper still compared to the year before. Yet, before that prices rocketed – so cheaper isn’t the same as cheap. And while lower prices are good news.”
Nevertheless, Martin Lewis, who established MSE, cautioned against automatic renewals. He urged consumers to “always compare” alternative quotes to identify potential savings opportunities.
Martin said: “I’ve a perverse warning for you. We’re so conditioned to price hikes, that if your renewal stays the same you’ll probably go ‘yay’. Yet that’s a mistake.
“The market has dropped, you should be paying less. So, always compare to check if you can save.” A straightforward method to discover what deals are available is by utilising the MSE Compare+ digital tools.
These platforms not only contrast various insurance premiums but also reveal additional money-saving opportunities – including the optimal moment to renew your policy. MSE user Navshad shared: “Used your tip to check car insurance 26 days before renewal and used your Compare+ tool and guess what… I saved £510. Thanks.”
Another customer, Rosemary, remarked: “Just wanted to share that I’ve saved just over £300 on my buildings and contents insurance by using your Compare+ tool. It was so easy to use. Thank you!” The Compare+ CAR Insurance tool is accessible here, whilst the Compare+ HOME Insurance tool can be found here.
Other ways to make savings
MSE has highlighted that certain people might benefit financially by bundling their motor and property insurance together. That said, this approach doesn’t suit everyone – it requires some experimentation to determine what works best.
MSE stated: “Should you get car and home insurance from the same firm? Comparison sites don’t give quotes for the few firms that give you discounts for combining cover. Yet for some this can work well, for others badly. It’s trial and error. And don’t worry if they have different renewal dates, their systems are built to cope with that.
“So, get prices separately first using the tools above (always safest), then see if any ‘combining’ firms rank relatively high up on whichever policy generally costs you the most. With Admiral* and LV* the car and home policies are combined, with Direct Line, Aviva and Churchill you could get a 10 per cent discount for each additional policy. “.
One reader, Jess, revealed she managed to cut costs by £700 through bundling her van and home insurance together. For further details, head to the MSE website here.