According to new data from Go.Compare home insurance, the best day to buy your cover is 27 days before your renewal is due. The data also shows that policyholders could pay 19 per cent less if they buy on this day, compared with the day before their renewal is due.
The findings are based on the average premium paid by policyholders for all buildings only, contents only and buildings and contents insurance in September 2022 and show that, on average, the cheapest time to buy a home insurance policy is 27 days before the renewal is due. The same data also shows that the most expensive day to buy a policy is two days before the renewal date.
Commenting on the new data, Ceri McMillan, home insurance spokesperson for Go.Compare, said: “At a time where we are all looking to save money on our outgoings, this type of information could come in really handy if you’ve just had your renewal notice from your current insurance company.
Ceri continued: “The potential saving of 19 per cent is a good chunk of your premium and all you need to do is take out your policy on a different day.
“Insurers vary the price you pay based on a number of risk factors, including the type of property you live in, any previous claims you might have and the area in which you live, to name but a few.
“So it may seem like there’s very little you can do to help keep premium costs down, but there are ways to save on your home insurance, and it would seem that buying your policy 27 days before the renewal is a good place to start.”
Top tips for renewing your home insurance
Go.Compare home insurance has compiled some practical guidance for anyone looking to save on a home insurance policy, but not wanting to compromise on the level of cover in place.
Pay in full, if you can
It’s estimated that you can save around 10 per cent on your premium by paying for the policy in one lump sum, as opposed to monthly payments. This is because your insurance provider is ‘loaning’ you the cost of your policy over its term, so charges interest on the amount.
Some insurers allow you to spread the cost over 12 months without paying any interest, so if you can’t afford the cost of paying the full amount up-front, this might be a deciding factor in which policy you choose.
Combine buildings and contents policies
You can cover your buildings and contents insurance in one policy, or buy separate policies that cover just the building or just the contents. Often, it works out cheaper to buy them together from one provider. This is because insurers sometimes offer discounts on combined policies.
Take care of your home
Keeping your home in good condition means you’re less likely to make a claim - so this could affect the cost of your insurance. Making sure you check for loose roof tiles, broken guttering and keep an eye on the condition of your windows means you are less likely to be affected by extreme weather conditions. Also making sure that pipes are well insulated so they don’t freeze and burst in cold weather is also good practice.
Securing your home
Things that can help secure your home could also help you secure a cheaper premium, including installing an approved burglar alarm, security lighting and key operated locks on windows - but before you make any changes, it’s also worth working out whether the cost of the equipment will outweigh the savings you’ll make.
Never auto-renew
Financial Conduct Authority (FCA) rules that came into effect on 1 January 2022, forced firms to stop the practice of ‘price walking’ and ensure that renewal quotes for home insurance consumers are not more expensive than they would be for new customers.
But even though a renewal quote won’t be more expensive, that’s still just one price from one insurer and comparison sites will be able to help you compare quotes from a range of insurance companies. It’s worth comparing policies annually to make sure you’re getting the best deal for you.
For more information about how to save on your home contents and buildings insurance, please visit the Go.Compare website here.
To keep up to date with the latest personal finance news, join our Money Saving Scotland Facebook page here, or subscribe to our newsletter which goes out daily, Monday to Friday - sign up here.
READ NEXT
DWP confirms payment schedule for new cost of living cash support
People on low income struggling with money this month could be due cash help from local council
Full list of one-off payments for parents and households due over the next 12 months
Check your eligibility for new £50 heating payment due to be made next month
New website helps Scottish households check for extra financial support
