MILLIONS of people could save hundreds of pounds a year on their car and home insurance.
The cost of insurance has fallen in the past year, saving consumers money on their bills.
People who pay for their insurance every month are now saving around £157million a year, according to the Financial Conduct Authority.
Meanwhile, interest rates have fallen by an average of 4.1% since 2022, saving customers £8 on a typical car insurance policy and £3 on a home insurance policy every year.
But there are several other ways you can cut the cost of your premiums even more.
Read on for four more ways to cut your costs now.
Pay for your policy yearly
Around 23 million people could save hundreds of pounds a year on their car and home insurance policies by paying annually.
This is because when you pay for your insurance monthly you enter into a credit agreement, so you borrow a lump sum from your insurer then pay it back over the course of a year.
Insurers charge interest on this money, which is why it is more expensive than paying the premium upfront.
Paying for your car insurance annually is up to 31% cheaper than paying monthly, which would save you up to £267 a year, according to Moneysupermarket.
Use a 0% credit card
If you can’t afford to pay for your insurance upfront then you could use a 0% interest credit card.
These credit cards give you several months where you don’t need to pay interest on any new purchases you make.
Not all insurance providers will let you pay for your policy in this way, so use a comparison website to compare policies before you lock into a deal.
Just make sure to pay your balance in full before the 0% period ends.
What to do when you need to renew
You can also save hundreds of pounds a year by knowing the cheapest date to renew your policy.
This is because insurers think that people who renew in advance are more organised and are less likely to make a claim.
Those who renew their car insurance on the day their existing deal ends would pay £704 a year.
But people who take out a new deal 30 days before their existing ones would pay £398 a year – saving them £306.
Remove unnecessary extras
You could also save hundreds of pounds a year by removing unnecessary extras from your policy.
Extras are benefits that you can add on to your policy for an additional fee, which can give you extra protection if things go wrong.
For example, you could remove windscreen cover from your policy and save £13 a year, or ditch being able to use a courtesy car to save £20, according to Gocompare.
But remember, if you then have an issue with your car then you may have to pay for these extras yourself, which could cost you more.
