Two thirds of Brits fail to shop around for home insurance and simply renew with their current provider instead, research by price comparison site Tescocompare has found.
These households risk substantially higher premiums as insurers tend to reserve their best deals for attracting new customers, whilst bulking up on those customers already ‘in the net’.
According to the research, over three million households that simply renewed their policy were hit with premium hikes in excess of inflation (3%) - even though they hadn’t made a claim or increased their level of cover.
Cheap insurance an ongoing battle
Worryingly, only one in five (22%) admitted to thinking about moving their policy, despite the increase. This inertia meant they collectively paid over £26 million more for cover than they needed to.
The bottom line is that insurers don’t reward customer loyalty, and you shouldn’t expect them to go out of their way to accommodate you. If they offer you an uncompetitive premium, it’s up to you to put in the legwork and find a better deal elsewhere.
Remarkably, 92% of those who did take the time to compare prices were able to locate a cheaper premium than their renewal quote.
Challenge your insurer
"The message behind this research is clear - many millions sleepwalk through their insurance renewal allowing their insurer to increase premiums unchallenged,” says Tescocompare’s commercial and partnerships director Paul Baxter.
“Regardless of how loyal you are to your current home and contents insurer - you should shop around at each renewal to make sure you get the cheapest and most appropriate insurance for you.”
Thankfully, shopping around for home insurance has been made a lot easier thanks to price comparison sites, which scour the market and locate the best deal for you in a matter of minutes.
Be careful to avoid the temptation to simply choose the cheapest bare bones policy you can find. You’re not really saving money if your policy proves useless when it comes time to make a claim. A good insurance policy is one that offers the right level of cover at the right price.
