I’m getting wiser with this money saving thing…
I’m sure you must realise that there are hundreds of companies that offer home, car, life and other insurance policies. Well, they are in a big competition to get your business. Are you happy to give it to the one charging the highest (sometimes extortionate prices)?
Imagine this: you are at a fair at your own little table selling vases. Problem is, you realise that there are ten other stalls selling the same vase for the same price as you. Wise up. If the buyers realise that you have dropped your price by ten percent, guess who they will be buying from? Those who don’t know, will continue to buy the more expensive vendors. And you know that you will still make a good profit.
It is the same scenario with insurance companies and utility companies. There are a lot who sell for less but if we don’t know, we continue to renew these contracts with the ones who are selling us for much more.
So since I’ve figured this out, every year, when it comes to time for renewing my insurance or other policies, I search online first to see if I can get a better quote. Websites like compare the market.com and money supermarket.com gives you the options of putting in your basic details and the kind of cover you are after. It then lists all (or as many as possible) companies and their quotes for you.
In my experience, it’s best to take the lowest quote that covers your requirements. Please note that you must be honest with all your answers when filling out your details and requirements or else it will make your policy null and void.
The first time I took out car insurance, I only paid for third party cover because I just thought that there was no way I would be able to afford comprehensive cover. Well, silly me, I paid for this cover for about three years, renewing it automatically when the renewal letter came.
Then a friend told me that it’s best to use a comparison website to get a better deal. Well guess what? I found a deal for comprhensive car insurance for half the price I was paying for third party cover. Since then, I have not done any automatic renewal for any bills. And almost every year, I end up paying less than I did the year before.
Even last week I called up my home insurers after they sent me their renewal letter informing me that I don’t need to do anything as they already have my details. Well after 2 or 3 minutes on the phone where I threatened to go with another company if they insisted on me paying more, I came away with a ten percent reduction on my premiums.
Tip #1: just as with your table stall at the fair, if there are many of you selling the same thing, people will opt for those with the best price, the same is true for larger companies. So if there are only two cable companies where you can get service from, you will pay more than those in other areas with many cable operators.
Tip #2: Do not automatically renew any policy or bill until you have called up or at least searched online for a better deal.
Home and car insurance are legal matters that must be taken seriously. Ensure that you are properly covered but that you don’t spend more than you have to.
I hope this has been really useful to you. Let me know how much savings you manage to make.
For 101 other frugal tips, click this link below