“Instead of cancelling your insurance policy altogether rather sit down with your broker or speak to your service provider to figure out a way to reduce your monthly premium while still remaining insured,” says Christelle Colman, Old Mutual Insure’s Executive for High Net-Worth Solutions. “While it may be tempting to cancel your policy in an attempt to save money, you could end up in a far worse financial situation if you are without cover and end up having an accident.”

Tips for reducing your insurance premiums

Colman’s number one tip to reduce your insurance premiums is to ask your provider to increase your excess in exchange for lowering your premiums. The excess is the portion you are expected to pay towards a claim in the event of an accident so by increasing this amount you are effectively reducing the liability on your insurer who can then reduce your monthly premiums.

“Of course, this does mean that you effectively act as your own insurer, or at least to a certain extent, which means you then need to save so that you have the funds available to pay the excess should that become necessary,” says Colman. “You’ll also want to focus on driving responsibly so that you reduce the chances of having an accident.”

Another obvious way to reduce your premiums is to ask your broker to get a number of quotes from different providers or to shop around yourself. That way you can choose the most cost effective option available for your specific needs. If you have several different insurance policies with different providers, it can also pay you to consolidate them into a single portfolio with a single provider who will usually be able to offer a better price for a combined policy covering your car, home and household contents than if you had each of those policies with a different insurer.

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