Watchdog: Save €1,800 on insurance by shopping around

CONSUMERS can shave up to €1,800 off their annual insurance bills by shopping around, according to the Financial Regulator.

In an era of falling prices, insurance premiums rocketed by more than 17% last year.

Premiums are set to increase even further in 2010 as companies attempt to claw back some of their losses from the recent floods.

However the Regulator said being aware of how to secure discounts and shopping around means customers can save hundreds of euro their policies.

When paying, it is usually recommended to pay your bill in one installment rather than by direct debit as firms can charge interest for spreading the payments across the year.

“Make sure you do your sums though – if you’re considering paying on your credit card, it’s worth comparing the annual percentage rate (APR) for monthly instalments with the APR of your credit card, to see which is the cheaper option,” according to the Regulator.

Tips on how to get discounts for your home insurance include having an alarm, having car insurance with the same company, the house is over 10 years old and there is somebody over 50 living in the house.

The Irish Brokers Association (IBA) expects home insurance premiums to increase next year by at least 10% while a survey conducted by Deloitte found that 85% of firms expect to hike motor premiums by at least 10% next year.

It has also been predicted that some householders face hikes of 40% or more in their mortgage protection premiums.