· Maria Lang · House · 3 min read
How to Save Money on Home Insurance in the UK
Home insurance is essential for protecting your property and belongings, but that doesn’t mean you have to overpay for it. With the right strategies, you can significantly reduce your home insurance premiums without compromising on cover. Here’s how to save money on home insurance in the UK.
1. Shop Around for the Best Deals
One of the easiest ways to save money on home insurance is by comparing different providers.
Where to Compare Prices:
- MoneySuperMarket – Compares a range of providers to find the best deal.
- Compare the Market – Offers rewards like 2-for-1 cinema tickets.
- Confused.com – Frequently offers vouchers and discounts.
- GoCompare – Includes additional cover options for free.
- Direct Providers – Some insurers like Aviva and Direct Line don’t appear on comparison sites, so check them separately.
How to Get the Best Deal:
- Compare at least three quotes before choosing a provider.
- Check for cashback offers on sites like TopCashback and Quidco.
- Avoid auto-renewing your policy as it’s often more expensive.
2. Increase Your Excess
The excess is the amount you agree to pay when making a claim. Increasing your voluntary excess can lower your premiums.
Recommended Strategy:
- Keep the voluntary excess at a level you can afford.
- Avoid increasing the excess too much, as it may make small claims unaffordable.
3. Pay Annually Instead of Monthly
Paying for home insurance in monthly instalments often includes interest and additional fees.
Savings Potential:
- Paying annually can save you up to 10-20% compared to monthly payments.
- If you prefer monthly payments, look for providers that offer interest-free instalments.
4. Bundle Home and Contents Insurance
Many insurers offer discounts if you take out combined buildings and contents insurance with the same provider.
Benefits of Bundling:
- Discounts of up to 20% for combining policies.
- Simplifies the claims process with one provider.
- Sometimes includes free extras like home emergency cover.
5. Improve Home Security
Insurers lower premiums for homes with added security features.
Security Upgrades That Save Money:
- Approved burglar alarms (such as those accredited by the National Security Inspectorate).
- CCTV cameras – Some insurers offer discounts for monitored systems.
- Secure locks – Install five-lever mortice deadlocks on doors and window locks.
- Smart security systems – Devices like Ring Doorbells and monitored alarms may reduce premiums.
6. Avoid Making Small Claims
Making frequent claims increases your premium at renewal. If possible, cover minor repairs yourself to keep your no-claims discount intact.
No-Claims Discount Benefits:
- Can reduce premiums by up to 50% over five years.
- Some insurers offer policies with no-claims protection to preserve discounts.
7. Check for Loyalty and Existing Customer Discounts
While auto-renewing can be costly, some insurers reward long-term customers.
Where to Find Loyalty Discounts:
- Banks and Building Societies – Many offer home insurance deals for existing customers.
- Utility Providers – Companies like British Gas and OVO Energy offer discounts on home insurance.
- Workplace and Union Schemes – Some employers and unions provide discounted home insurance.
8. Consider a Higher Level of Cover
Surprisingly, increasing your level of cover can sometimes reduce your premium.
Why?
- Some insurers assume high-value policyholders are lower risk.
- Fully comprehensive cover often includes added perks like legal expenses or home emergency cover, reducing the need for separate policies.
9. Look for Cashback and Discount Codes
Cashback and discount codes can help you save on new policies.
Best Cashback and Voucher Sites:
- TopCashback & Quidco – Offer cashback on insurance purchases.
- VoucherCodes & HotUKDeals – List home insurance discounts.
- Banks & Credit Cards – Some reward schemes include cashback on home insurance.
10. Review Your Policy Annually
Many insurers raise premiums each year, so always review your policy before renewing.
What to Check:
- Has your premium increased? If so, ask your insurer to match competitors.
- Do you still need all optional extras? Remove unnecessary add-ons.
- Are there better deals elsewhere? Switch to a cheaper provider if needed.
Conclusion
Saving money on home insurance in the UK is all about comparing quotes, improving home security, and optimising your policy. By shopping around, increasing your excess, and taking advantage of discounts, you can significantly reduce your premium while keeping your home protected.
