The expert told people to “always” take one step to ensure they’re not paying too much
Martin Lewis said you should “always” take one step before renewing insurance policies(Image: Getty)
Martin Lewis has warned Brits to “always” do one thing in order to potentially save hundreds on insurance costs. According to the expert, you could be making a “mistake” when it comes to renewing your policy.
Renewing car and home insurance is not a fun task. It can be a lengthy and frustrating process.
While it may be tempting, therefore, just to autorenew with your previous supplier, this could be costing you more than it needs to. In the latest advice from Money Saving Expert (MSE), the team explained that both car and home insurance have dropped in price.
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.” However, Martin Lewis, the founder of MSE, advised against autorenewal.
He told people to “always compare” prices elsewhere to see if they could make savings. 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.”
One simple way to check what’s available to you is to use the MSE Compare+ online tools. Not only do these systems compare different insurance prices but also highlights other ways to cut costs – including when the best time is to renew.
One MSE user, Navshad, said: “Used your tip to check car insurance 26 days before renewal and used your Compare+ tool and guess what… I saved £510. Thanks.”
And another, Rosemary, commented: “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!”
You can use the Compare+ CAR Insurance tool here and the Compare+ HOME Insurance tool here.
Other ways to save
MSE further explained that some people may be able to make savings by combining their car and home insurance in one bundle. However, this isn’t the case for everyone – it’s a bit of a “trial and error” process.
MSE said: “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 said she saved £700 by combining her van and home insurance. For more information, visit the MSE website here.