Increase house insurance excess to reduce premium?

Got a renewal house insurance quote from AA that was €100 more than last year. Never had a claim in 10+ years. I called AA and the premium can be reduced from €374 to €273 by increasing the excess from €350 to €500. I'm tempted but wondering if it's worth paying more for the reduced excess? (my thinking is that I don't make a claim for minor stuff as it would increase the premium for next year and an extra €150 excess payment for a substantial claim is insignificant). Thanks

I would say its not worth paying more as you should avoid making a small claim under your household policy because it will cost you more in the long run. But its all relative.

if you make a claim - you pay an extra €150 in excess for that claim...

I've increased my excess from €250 to €500 - like you, I'm been claim free for the last 10++ years... saved a similar amount to yourself. You should also try FBD & postinsurance - they were quite competitive for me this year...

If you have no claim = €100 Premium Saving
If you have a Claim = €150 Additional Cost less €100 Premium Saving = €50 Net Additional Cost
If you have a Loss between €250 and €500 you lose the option of Claiming = But probably wouldn't have claimed anyway

Looks like a simple enough decision. Not much downside.

Just got another quote (AXA) for €250 with an excess of €350 - but they don't cover subsidence (or contents cover - which doesn't bother me as I'd prefer to replace than to claim). The house is approx 40 years old without subsidence - I know it's crystal-ball stuff but what are the chances? Or am I chasing the cheapest quote - regardless of cover provided? Thanks Jazz01 - I will need to contact FBD & postinsurance - but how low do you go? At the end of the the day am I just insuring against a major fire/ flood or a nuclear explosion?

Cheapest isn't always the best you need to look at what's being offered with each quote & ask yourself - "what happens in the event of a claim". You'll need to get the details of what is covered & whats not etc & compare... is it worth dropping some things for the saving of a "10's of euro" in the renewal.

By the way, Bank Of Ireland are quoting "€50 cheaper than your quote" - so they might be another option ...

Thanks Jazz. I usually ask about:
- buildings
- contents
- standard excess
- accidental damage
- public liability
- replacement of locks
- fire brigade cover
- subsidence
- water damage excess
Not sure how helpful it is though as I paid a locksmith €400 two years ago without claiming...

Am I correct in thinking that some insurance companies are more reliable than others when it comes to a claim. For example I would classify AA insurance as a trustworthy company, with a good reputation. Or are all insurance companies legally bound to deal with claims in the same way?

With contents, you also need to consider whether they pay out at the current value of the items, or replace with new. E.g. Your 10 year old fridge might be running perfectly, but its current value is way less than the replacement cost.

Thanks for the replies but are some insurance companies are more reliable than others when it comes to a claim?

Logo said:

Am I correct in thinking that some insurance companies are more reliable than others when it comes to a claim. For example I would classify AA insurance as a trustworthy company, with a good reputation. Or are all insurance companies legally bound to deal with claims in the same way?

Click to expand...

AA are a broker of sorts. They arent an insurance company. They have to deal with your claim. It comes down to whether they have their own claims department or outsource to a firm of loss adjusters. Basically some companies will me more efficient than others.

My house insurance is up for renewal soon. Am I correct in assuming:
(1) Most insurance companies don't provide a freephone number to avail of their services.
(2) Most insurance companies have three quotes to keep the customer - the most lucrative (the majority of customers will just renew), the quote that competes with other companies and the cheapest.
(3) It's better to increase standard excess to reduce premium.
(4) Only include personal belongings & accidental damage if you are going to use it.
(5) Need to factor in dealing with insurance companies/ brokers/ brokers of sorts
(5) It's unwise to insure contents/ locks etc. unless you are willing to claim (which will bite you).
Which limits house insurance for me to buildings cover, accidental damage, public liability, fire brigade, subsidence & water damage?

my own philosophy is to just insure for the big losses so I go for as big an excess as possible on all insurance - home, car and health.

If you have an excess of €350 and you have a loss of €500 , are you really going to claim €150 and lose your NCB?

If someone robs my TV , I will buy a new one. I would be very unlucky if they robbed it just after I bought it.

If they rob my clothes ... they are welcome to them.

Brendan

Thanks Brendan. That makes total sense to me. Car insurance is due next month too. Is there any advantage in having house insurance with the same company? (besides the bluff that it's 10% cheaper - but cheaper than what?). I expect that I will have to shop around again this year..