Where to find the best insurance deals

If you want a good deal on your home, contents or travel insurance, you will need to do more research in the post-Covid-19 world.

When it is time to renew your insurance policies you may be in for a shock. The pandemic has prompted a rise in premiums for several types of insurance. Here’s how to hunt down the best deals. 

“A DIY boom during lockdown has been partly blamed for the price of home insurance increasing by 7% this year, from an average premium of £239.10 to £255.79,” says Jessica Beard in The Daily Telegraph. Aviva noted “a rise in claims for DIY disasters” during the summer.

If your home insurance is due for renewal, shop around using price-comparison sites. And only get the cover you need. For instance, make sure your buildings insurance covers the rebuild value of your home – you can use the calculator on the website of the Association of British Insurers to work this out (you will need to register first) – and not the purchase price, which is usually far more. 

Contents insurance

As for contents insurance, most people undervalue this, so take the time to be sure you are fully covered for the value of your belongings. You don’t want to find out when it comes to the crunch that the insurance you’ve been paying for won’t cover the full value of your possessions. Improve your home security too. “Insurance is all about risk, so if you can prove you’re a less risky proposition to insurers, you’re likely to unlock cheaper premiums,” says Stephen Maunder of consumers’ group Which. This means making sure you have insurer-approved locks on your doors and windows and deciding whether a burglar alarm would save enough money to justify the installation cost.

If Covid-19 means you are now working from home you should tell your insurer when you renew your home insurance. “While insurers assure me that working from home during the pandemic is not a problem, running your own business from home is,” says Dean Dunham in the Daily Mirror. If you are doing the latter you may need to take out a business insurance policy. Speak to your insurer to find out what you need.

Travel insurance

Travel insurance, unsurprisingly, has soared since lockdown. Premiums for European cover rose by an average of 9% between March and August, says comparethemarket.com. Insuring a trip to America will now cost you 16% more. 

To add insult to injury, “many policies do not cover travellers for coronavirus-related cancellations”, says Beard. If you are planning a trip, whether in the UK or abroad, you need travel insurance. Look for a policy that will cover you for all the usual things plus cancellation due to Covid-19 restrictions and protection if you get coronavirus. Several insurers now offer full cover, including Trailfinders, Co-op, and LV.

Anyone seeking a new current account may want to consider Nationwide’s FlexPlus account when shopping for travel insurance. For £13 a month you get worldwide travel insurance up to the age of 70 covering medical expenses due to Covid-19 and cancellation cover if you have been diagnosed with Covid-19. You also get worldwide mobile-phone insurance for you and your family, and UK and European breakdown cover. Note that if the government advises against travel to your destination your travel insurance will be invalidated if you still go on your trip.

Recommended

Not been driving much? Here's how to save money on costly car insurance
Insurance

Not been driving much? Here's how to save money on costly car insurance

If you've not been driving your car much lately, it’s important to shop around for a better car insurance package, says Ruth Jackson-Kirby.
31 Mar 2021
Holidays in the UK – should you buy travel insurance?
Insurance

Holidays in the UK – should you buy travel insurance?

Booking a holiday in the UK? Tread carefully with travel insurance, says Ruth Jackson-Kirby – make sure your policy covers everything you need.
9 Mar 2021
Wills aren’t set in stone – change them with a deed of variation
Personal finance

Wills aren’t set in stone – change them with a deed of variation

If all executors and beneficiaries of a deceased’s will agree, they can change who benefits. Ruth Jackson-Kirby explains how.
2 May 2021
Inheritance tax bills are set to rise – will you be caught out?
Inheritance tax

Inheritance tax bills are set to rise – will you be caught out?

The number of people who actually pay inheritance tax is very small. But more and more estates are set to be dragged into its net, says David Prosser.…
30 Apr 2021

Most Popular

What is hyperinflation and could it happen here?
Inflation

What is hyperinflation and could it happen here?

The Bank of England has been accused of the kind of money-printing that could lead to Zimbabwe-style hyperinflation. But that's very unlikely to happe…
4 May 2021
Micro-cap stocks: how to get huge returns from tiny firms
Small cap stocks

Micro-cap stocks: how to get huge returns from tiny firms

Micro-cap stocks are often overlooked, but the British market has plenty of them and their potential is massive. Max King picks the best two investmen…
3 May 2021
Copper has hit a ten-year high, but this could just be the start of a huge bull market
Industrial metals

Copper has hit a ten-year high, but this could just be the start of a huge bull market

The price of copper is at its highest for ten years. But supply constraints and a massive rise in demand mean it’s not going to stop there, says Domin…
5 May 2021