Nov 2, 2011
Homeowners are wasting a huge £667 million a year, or an average £125 per household, by sticking with their existing home insurance provider, according to MoneySupermarket.com.
Research from Britain’s number one comparison site found a third of homeowners (31 per cent) automatically renew their home insurance with their existing insurer rather than shopping around to find a better deal. Of those loyal customers, 20 per cent don’t think they can find a better deal, and a further 11 per cent are missing out on savings as they can’t be bothered to shop around.
On average, Brits stay with their insurer for three years, with the over 55s staying most loyal – sticking with their insurer for four years on average. Almost half of homeowners (44 per cent) have been with the same insurer for over two years, and seven per cent have been with the same insurer – sacrificing potential savings – for a whopping ten years or more. The North East, the East of England and Northern Ireland take the top spots for the most loyal regions (sticking with the same insurer for four years respectively).
Peter Harrison, insurance spokesperson at MoneySupermarket, said: “Having the choice to automatically renew your home insurance is an appealing option for time-poor homeowners – but ask yourself, is it worth paying such a hefty price for the convenience? Shopping around for the best deal is quick and easy, but by not doing so, consumers are effectively watching their hard earned cash go down the drain.
“While mortgage providers strongly insist homeowners have adequate buildings insurance, it makes financial sense for every household to have combined buildings and contents insurance in place. Combined policies tend to offer the best value as well as providing comprehensive cover for your home and garden against problems such as subsidence, burst pipes, and personal liability, all of which could land you with a bill for thousands of pounds. This is in addition to more common incidents such as burglary, accidental damage or loss of possessions away from the home. Without having cover in place you could end up having to foot a very expensive bill.”