If your home insurance is about to expire, don’t presume you’ll get the same annual rate as last time. Premiums often go up after the first year, so what could cause your regular payments to rise?
The removal of discounts and offers
The insurance market is incredibly competitive. That’s why many companies lower their prices to attract new buyers. They lure you in with offers and deals before removing these discounts further down the line, so don’t let your policy automatically renew. Instead, keep a close eye on the market, compare quotes online and pay your new premium off in full using a 0 per cent UK credit card to avoid excessive interest charges.
If you’ve made a previous claim
As most insurance policies are based largely on risk, maintaining a no-claims record could bring your costs down. Of course, insurance is there for your security and convenience, but if something happens is it really worth seeking compensation? This will depend on your situation, but if you do contact your provider, your premium could rise significantly the following year.
The type of property you own
If you move from a standard city terrace to a listed building in the country, don’t expect to pay the same premium for each property. Farms, protected structures and those with unique features tend to need specialist insurance and you’re sure to be charged more for the privilege. Similarly, if your house is made from timber or constructed in a unique way, this could also hike up the price, so do your research before investing in new property.
Where you live
While the type of home you choose can affect your premium, where you live can raise the cost too. If your house is in a flood-prone area or is likely to subside, you may receive an unwanted bill! Similarly, if you live in a high-crime area or if lots of people in your region have recently made claims, you can be sure to expect quite a significant fee. Sometimes it’s worth paying more to get the house of your dreams, but always compare credit cards and look for low interest rates before committing to high payments.
Home insurance can be a tricky business, but with a little common sense and research you can keep prices down.