Beleaguered consumers can save €1,000 in insurance costs

CONSUMERS can save more than €1,000 in 2011 by negotiating, paying up-front and reading the small print.

With reduced take-home pay a reality for the majority of Irish citizens, how they manage their money will be a deciding factor in consumers’ financial well being, according to Frank Conway of moneycoach.ie.

“And, while some financial gurus may say spend less for those with a mountain of debt, that is easier said than done,” he said.

Mr Conway said that people can save on their insurance premiums by paying upfront rather than by direct debit.

Direct debit payments now cost in the region of an 8% surcharge on home protection and consumers can save around €40 by making a single premium payment.

On car insurance they can save up to 5% on their annual premium by also paying up-front and this can result in annual savings of around €25. The same percentage of savings can be made with life protection policies. On a policy costing €1,200, annual savings could be in the region of €60.

Savings can also be made updating your home alarm details. National Standards Authority of Ireland (NSAI) approved alarms generate around €40 in annual savings. Other serviced alarms such as Eircom can generate higher savings, but the annual subscriptions may reduce the overall benefit.

Consumers have also been urged to review the sum insured on their home. Mr Conway said the sum insured relates to moveables and not fixed items such as bathroom fittings. Savings of around €20 to €50 can be made here.

They have also been told to review replacement costs and make sure they are not paying Celtic Tiger replacement costs which could result in savings of around €60.

A life policy holder who has quit smoking for more than 12 months can generate savings of 25%-30%. On a policy costing €1,200, the savings would be €360.

For those who have children in school, they can check if the school participates in the school grounds and home ground personal protection for children. According to Mr Conway this could save €325 off a simple Swiftcare clinic visit.

People can also apply for the drug payment scheme through their local HSE office. They pay the first €120 per month and the Government pays the remainder over €120 per month.

Also some car insurance companies offer a discount if drivers use public transport to work.