Dear LPG, 

I understand that there are many products that we buy that have a set price.  You go to the shop where they are sold and the price tag is either on the shelf above or below the item, if it is not actually attached, so you make your choice and go to the checkout.

But then we come to those products that you buy in the hope that you will never have to use them.  There are some you choose to have and others that you have to have but they are all expensive and many of us just accept the price and pay every year.  I am talking about insurance.

If you drive you have to have car insurance by law and most people can see the sense in having home insurance, while many of us also have health insurance, pet insurance, life insurance, dental insurance, white goods insurance, travel insurance and the list goes on.  

But here is the question when it gets to that time of the year where the premium needs to be renewed; do you just pay the amount that your insurance company asks for or, worse still, do you allow them to just take it out of your bank account via direct debit?

If you do, you can guarantee that they are ‘quids in’ while you are nearly certain to find yourself out of pocket without even knowing it. 

I was watching the television one day not so long ago with three of my friends who all still drive and that advert with the singing insurance man was on as we changed channels, and the next thing we saw was an advert featuring those price-comparing meerkats.  The subject of conversation changed, and we worked out that only two of us had ever taken a look at a comparison site even though we all knew a bit about using a computer.     As older people, so many of us accept that we have to pay loads more money to get any sort of insurance and I think that far too many travellers, drivers, pet owners and homeowners just accept this, but it is worth a little bit of research before you settle on the renewal price that last year’s insurers offer you.

Most people who are going to get some building work done would follow the age-old advice of getting three quotes before committing and, even if you are really scared of using a computer, you owe it to yourself to find someone who knows how to go to one or two of those comparison websites before you commit your money and possibly overpay.

As older people, so many of us accept that we have to pay loads more money to get any sort of insurance and I think that far too many travellers, drivers, pet owners and homeowners just accept this, but it is worth a little bit of research before you settle on the renewal price that last year’s insurers offer you.

For years I have just paid what the company asked for but last year I had to have a new car because of the whole ULEZ situation, and I really was worried about how much more it would cost to insure a much younger car.  So, I got my nephew to show me what to do and my newer car insurance ended up being cheaper than what I paid for my older car the year before, even though I did not go for the cheapest offer.

One last point…

Please don’t think that the cheapest quote you see is always the best; the cheaper the quote the higher the excess charge is likely to be and an insurance company that you have, at least, heard of is worth considering too.  There are also many different perks that can be offered (i.e., multi-trip travel insurance cover, free roadside assistance cover for drivers, or free cover for jewellery if it gets stolen when you are outside the home). 

I think that insurance is the most expensive commodity that we ever buy because if everything goes right, and I hope and pray that it does for all of us, we never really see what we get for our money, but there is no point in overpaying.  

GP, Penge. 

LPG tried to find some information about how to get started with a comparison website for those who really have no idea, but there is very little on the basics.  But there are a few somewhat advanced tips on offer.  We suggest that readers who don’t understand watch with someone who can…

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