How to save £800 on your insurance

It’s the same every January. We look at the ruins of our bank accounts after the flurry of Christmas spending and resolve to do better this year. We plan to save more money and make sure we stay out of financial difficulty. And there’s good news. Most people could save up to £800 on their annual insurance bill by taking a few simple steps – that will buy a lot of Christmas presents in 2007.

Two ways to do this are to shop around for the best deals and to make sure the cover you get is right for you – no sense in paying over the odds for cover you don’t need. Moneysupermarket has given ten tips for reducing your annual insurance bill.

1. Paying your home insurance premium annually could result in big savings as there is often a 30 per cent APR charge for paying monthly. (£16.40 saved).
2. Fit approved door and window locks and get an alarm. This could save an extra £21.13 a year.
3. To save another £9.86 on your home insurance, increase your excess.
4. Car sharing or informing your insurer if you are a weekend car user could save you £43.08 on your motor insurance policy.
5. You could save another £15.20 by increasing your excess to £250.
6. If you are a younger driver, add an older driver to your policy to save £43.45 and increase your excess to £250 to save £50.20.
7. Giving up smoking could cut your life insurance premiums by £62.80 a year for men and £47.28 a year for women.
8. If you’re taking out a mortgage, getting a credit card, buying a new mobile phone or purchasing another household item, think twice before getting the payment protection insurance deals offered. You could save £27.80 a year by choosing a deal from an independent provider.
9. Getting the best deal on travel insurance could save £121.99 on a single trip policy and £98.20 on an annual policy.
10. Shopping around is the best way to make sure you get the best deals.