According to research by Moneysupermarket.com, householders can cut the cost of their home insurance by £122, without cutting back on cover.

While it may seem obvious, shopping around for insurance can save you a fortune. Never just accept the renewal quote you are offered as it is always worth getting quotes from rival insurers.

But keep in mind that the cheapest policy may not be the most appropriate as the level of cover will vary. To cut costs even further, secure your home by fitting locks on doors and windows or sign up to your local Neighbourhood Watch scheme.

If you live in an area where there is a high incidence of burglary, then joining a scheme could knock about 5pc off the cost of premiums.

Also, it is worth increasing your excess as most policies include a voluntary and/or compulsory excess charge (the amount you pay before the insurer will pay out in the event of a claim). If you are prepared to increase this slightly, you can get a reduced premium.

Another easy way to reduce costs is to pay your premium upfront. Do not be tempted to pay for any type of insurance monthly because it appears to be cheaper or more manageable. It is not, as you will be charged interest, which can be as high as 24pc a year.

Telegraph.co.uk

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