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My insurer is offering to fix my premiums for the next five years, is this a good idea?

Although this may sound tempting, when you explore a little further, you may find that such promises come with a hefty price tag attached. Your existing provider may not be the most competitive when it comes to home insurance. In fact covering the contents of your property with an uncompetitive insurance company could end up costing you over £100 more than other providers who are offering identical cover. Therefore if you take up the offer to freeze your premium for the next five years, you could end up being over £500 worse off as a result. Another point to consider is that if you don`t make any claims on your home insurance, you generally benefit from a no claims discount in future years. But if you agree to fix the price of your premiums for a period of time, you`ll be unable to claim such discounts on your premiums.

How can I reduce my car insurance premium?

Most of us shop around to try and get a cheaper deal when the renewal notice lands on the doormat. However you may be able to lower your premium just by reviewing your existing cover. For example do you have a named driver listed on your policy that hasn`t driven your car for years, is your annual mileage figure accurate and do you still park your car in the same place. These are all factors that can impact the size of your annual insurance premium, so it`s well worth spending a few minutes to read through your policy document to ensure all your details are accurate and up to date.

How can I reduce my Home insurance premium?

Consider increasing the excess on your policy from the standard £50, the higher it is, the lower your premium becomes, however it`s about getting the balance right for your circumstances.

Fitting approved locks on the doors and windows of your property can also cut the cost of your cover.

A burglar alarm (NACOSS standard) will entitle you to a discount, however these products don`t come cheap and they need to be serviced on an annual basis.

Consider joining your local neighbourhood watch scheme.

If you apply to your existing insurance company as a "new customer", you may find that you are offered cheaper cover than that shown on your renewal notice.