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How to compare insurance quotes

How to compare insurance quotes

Category: Insurance
Author: Tim Leonard
Updated: 08/02/2018

"Cheap car insurance!" gets your attention, doesn't it? We all want to pay less for things, insurance most of all.

But thinking "cheap, cheap, cheap" isn't the best way to compare insurance quotes. In fact, it could end up causing you a big headache.

Cheap usually means "not as much cover and not as many benefits."

Value, on the other hand, is different – this is the cover you need, at the most competitive price.

So really, when comparing any insurance – be it car, life, home or pet – it's "value, value, value" that should be at the forefront of your mind.

What do you need from your insurance?

Think carefully about what you need from your insurance – there's more to it than how many £££s you need insured.

  • How much would you be able to afford to pay if you needed to claim? A lower excess on an insurance policy will mean the premium will be more, but on the other hand, setting an excess too high can have damaging consequences to your finances in the event of a claim.
  • Do you have anything particularly valuable you need to insure? An expensive piece of jewellery? A bicycle? Computer equipment?
  • What about accidental damage? Just because it's an accident, it doesn't make the damage any less expensive to repair!
  • For life, health and even pet insurance, think about the level of cover you'll need. Price should always be a secondary consideration.

This isn't an exhaustive list – there may be other things to consider for different insurances.

Don't be tempted to under-cover yourself

"Wow, that's expensive – I wonder what my quote will be like if I take £10,000 of contents cover off?"

No, no, no! Having the right level of cover is crucial.

To take the example above: what if your house burned to the ground, or was flooded? You would lose everything. Your insurance pays out but you're £10,000 down because you decided to cut costs: it's a false economy.

There is only one time when cutting cover is acceptable – that's when it's a choice between some cover, and no cover. If your budget is pushed and you can only afford some cover, it's always better to have something than nothing.

But when your situation changes, you should make sure you review this and up your cover to the level you need.

Honesty is always the best policy

Enter all your details truthfully and completely. Be careful to check any option boxes – they may be pre-populated with an answer.

Aside from returning a price that won't be right for you, if your details are wrong on your insurance application, it may invalidate any claim you make later.

Remember: the whole point of insurance is so that it pays out if you need it to.

Features, then price

Make sure you compare like-for-like quotations for the best value insurance policy. For example, you wouldn't compare a fully comprehensive car insurance quotation with a third party fire and theft, would you?

You also wouldn't compare a quote with an excess of £100 to one with a £500 excess.

Don't trust that your quotation has everything you asked for.

Check your quote has all the benefits you need – don't assume this will be the case.

The important comparison: your insurance quotation vs. your existing policy

The most important comparison to make is against your existing cover.

Will your new policy protect you less? If so, is this intentional (when, for instance, you've gone for less cover because you don't need or want it)?

The new quote may save you money – but make sure you're not compromising on cover!

What next?

Compare insurance providers.

Disclaimer: This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice.