New year, new insurance

If Christmas overspending is taking its toll, don't forget that reviewing all your insurance policies can save you hundreds of pounds,

advises James Harrison, Chief Executive of Insurancewide.com, the original insurance comparison website.

1.

Annual or Single Trip Travel Insurance: If you are planning more than two overseas holidays this year, buy an annual travel insurance policy, especially if you are going to hit the slopes.

Advantages of an annual policy are that it usually includes winter sports cover as standard and allows for spontaneity - you can jet off on a last minute deal without worrying about paperwork.

2.

Update your home insurance: If you have carried out any home improvements make sure that you update your buildings insurance.

Now Christmas is over, review your contents insurance too and remember to include any new electrical or valuable items that you have purchased or received as gifts.

The time it takes to do this is small in comparison to how much it would cost to replace those items if they were lost, stolen or damaged and your insurer refused to pay out.

3.

Shop around for car Insurance: If your car insurance is soon up for renewal, shop around for alternative quotes before you accept the renewal premium offered by your existing insurer.

The current competitive nature of the car insurance market means that insurance rates are constantly changing and therefore your existing insurer may not be offering you the best premium.

If your personal details have changed, your car is different, or your address is different then your risk profile may not be suited to your existing insurer.

4.

Become healthier and your life insurance premium could decrease: Start the New Year off by kicking those bad habits.

Give up smoking now and after 12 months you could save up to 60% on your existing life insurance.

Also think of the saving you can make by not spending five pounds on each packet of cigarettes.

Slimming down and leading a healthy lifestyle with regular exercise reduces your risk of developing life threatening conditions and therefore your risk to your insurer.

This also contributes to lower premiums! 5.

Avoid taking out unnecessary Extended Warranties Insurance for electrical appliances: They are often over priced and over-sold to you by sales assistants.

Most home contents insurance policies include cover for these items as standard against theft and accidental damage.

Home insurers will not provide cover against mechanical failure but most manufacturers offer a free guarantee for at least a year.

Always weigh up the costs of such policies before you buy and make sure you are not doubling up on cover.

If you are not covered by your home insurer there is likely to be a cheaper alternative to in-store warranties.

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