A finance expert has revealed a simple method that could help you save as much as £500 on your home insurance. Martin Lewis announced the launch of a new online tool to compare prices.
The founder of the consumer site Money Saving Expert (MSE) warned that home insurance prices are up 19% each year. And compared to five years ago, Martin said they are up a staggering 80%.
Therefore, to help people find the best deal for them, the team at MSE have created the Compare+ Home Insurance site, which offers personalised quotes and advice.
A basic version of the comparison site was trialled in December with some customers given early access.
In an update, MSE shared how one such customer, Paul, was able to save £500 as a result of using the tool.
He said: “Thanks to your helpful advice I decided to do something about my renewal.
“I received an extortionate quote for over £700, but have just gone for an alternative company and almost identical cover for just £189 [a saving of £500 plus a year]! I am thrilled!”
To use the comparison site you will be asked to fill in a quick questionnaire. You will then get your benchmark quote.
Then, the tool will suggest tweaks that will result in further savings. Martin explained: “Compare+ shows which other comparisons to add in, and in what order.
“We’ve always told you to use as many comparisons as you’ve time for, and the new tool doesn’t change that. Different comparison sites include different insurers, and even where the same firms are listed, they can have different prices for them – as Lizzie emailed: ‘I’ve found exactly the same policy on two different comparisons recommended by MSE, and one has it for £60 a year cheaper. Glad I read your suggestions!’”
On top of this, the site will tell you if you’re too early or late for your renewal. Martin continued: “While it sounds crackers, how early before renewal you get a policy can have an up to 25% impact on what you’re charged (we get this info from analysing up to 650,000 quotes).
“So the tool will tell you when to come back if you’re too early (don’t worry; you can save info so you needn’t re-enter it), and if you’re too late, we’ve calendar reminders so you time it right next year.” The tool will then analyse your data, to show you other ways to try to cut your costs further.
These include:
- Will upping the voluntary excess (the amount you pay towards a claim) save you money?
- Can you pay annually rather than monthly?
- Can you save by combining your home and car insurance?
To find out more visit moneysavingexpert.com/insurance/home-insurance/compare-plus.
