Paying too much for insurance is something none of us want. So what can you do to reduce premiums? Here are useful hints and tips on how you can decrease your life and home insurance premiums, saving you lots of money in the long run.

Decreasing Life Insurance Premiums

• Lead a healthy lifestyle

Although you can’t do anything about your age and medical history, which are main factors affecting your life insurance, you can certainly improve your health. A healthy lifestyle will definitely reduce your premiums as you won’t be at high risk of illnesses and can potentially live longer. That way, your insurer will not expect to pay your death cover for many years. Things you can do include:

• Losing weight to reduce cholesterol levels, blood pressure and risk of diabetes
• Limiting alcohol
• Quit smoking as it can lead to lung cancer and decrease your life by years

• Be a safe driver

By being a good driver, you will not be at risk of accidents or fatal crashes. If you have any driving violations, your premium could be high due to being a risky driver.

• Consider ceasing trauma or TPD if you have sufficient income protection

You can cut your premium if your life insurance also includes trauma insurance or total and permanent disablement and income protection. Only drop the trauma or TPD if you have a sufficient amount of income protection as this can replace 75 per cent of your income if you’re unable to work due to an accident or sickness.

• Change insurance companies

Consider switching if you find you can get a similar or better policy for a cheaper price at a different insurer. Make sure all your features and benefits will be included in your new policy before changing.

Decreasing Home Insurance Premiums

• Install home security systems

You could get a home security discount if you show an insurer that you’re responsible and are prepared in the event of a fire or burglary. Equipment such as an alarm, smoke detector, fire extinguisher, window locks and deadlocks can help in reducing your home or home and contents insurance.

• Combine your policies

Combining your home and contents insurance into one policy will most likely give you a discount. Also consider purchasing your car insurance with the same insurer for a possible discount of up to 30 per cent off your total insurance bill.

• Check for all discounts

It’s worth asking your insurer if you’re already receiving all of the home insurance discounts you and your family are eligible for. Some insurance companies offer discounts that its competitors don’t so it’s a good idea to enquire.

• No claims history

Your claims history affects your premium. If you have not made any claims, you could be eligible for a no-claims bonus. This can give you a discount from 25 per cent. You can also consider not making a small claim by paying for it yourself so you can keep your no-claims bonus.

Ways to Decrease both of your Life Insurance and Home Insurance Premiums

• Have your policies tailor made

Everyone has their own needs and objectives for insurance. Consider looking for an insurance company willing to ask you more questions so they can tailor what is only important to you in your policies. You can decrease your premiums by reducing the features you and your family will not need.

• Shop around and compare quotes

Similar to having a tailor made policy, it’s worth searching for the cover that is most suitable for you, your family, home and contents. An easy way to do this is by phoning or visiting the website of an insurance company comparison service. You can answer questions or complete a form, and then your answers will be assessed to give you options on the cheapest policies for you. You will be able to compare the right insurer and policy for your needs and budget.

• Have a good credit score

Some insurance companies favour high credit scores and see it as a good indicator of responsibility. If you have a high or very good credit score, you’ll most likely have a lower premium rate. This is because the insurer believes you’re less likely to have a high number of claims due to your behaviour. So make sure you stay on top of your finances and pay your bills on time to maintain your good credit score – you can save lots of money.