Haggling: It's More Than Pennies and Better Than Cashback

Cute.
Literally no other reason.

So my insurance renewal was coming up, for my home and contents. At first I was pleased that the renewal was cheaper than last year and they were happy to handle it all automatically. Easy right? And new laws say they aren't allowed to offer cheaper deals to new customers, so it's all a win-win.

But it niggled at me because one of my banks was throwing around a ridiculously low price for contents insurance. In the end I clicked through to the bank, and although it didn't apply to my circumstances, I figured it was worth doing a comparison quote somewhere just to reassure myself I was getting a decent deal where I was. I plucked Compare The Market out of thin air, partly because I've used it before and partly, because, well, meerkats are cute. 

Anyway, at first glance it looked like I'd get a £10 cheaper quote (hardly worth switching for) but also £25 cashback for switching (ok, now you have my attention). At this point I remembered a very important piece of information, which is, do not ever switch insurers without first going back to them and seeing what they can do - including, asking them to requote you while checking all your info is correct.

There's a really good reason for this, you might find you're paying for something that is now included for free, or that doesn't suit you anymore, or some of your details might have changed. We all spend so much time and effort trying to save ten flipping pence off a reduced packet of apples, why on earth don't we spend a little bit of time on the BIG TICKET items which cost us much more?

Ahem. I'm glad I overcame my laziness. While chatting about my needs, the lovely Saphira managed to quote me down by a whopping £84.04, without me needing to faff about or argue, or wait for cashback money. Because she asked the question correctly (and made me think!), I have given up the "gadget insurance" I was paying for as I realised that my premium plus my excess went over the entire value of my new phone, which is the only gadget I needed to cover outside the house.

Last year I paid by-the-month in the hope it would help my credit history. It didn't seem to make a difference and when I asked her the monthly-payment APR, it's 24.9% (OUCH!) so this year I've paid up-front all in one go. Why? Because although it's only a couple of pounds per month extra that you cough up for the monthly payment plan, I'm not paying anywhere near 24.9% on my current debts. So it doesn't make sense to do so. Also, I used the credit card that's in the black, so it's all a win.

I win. I'm tired of thinking now, but I'm calling it a win. I'm also going to run off to my expenses spreadsheet and note down the new details.

What I learned, and you should learn too: "Please could you tell me the APR on the monthly payment option?"