Lazy home insurance shopping is costing Brits millions

11 June 2008 / by Rebecca Sargent
Almost two thirds of Brits are throwing millions down the drain as they choose to renew their home insurance with the same provider, despite an increased premium in excess of inflation, new research from Tescocompare.com has revealed.

According to the study, only one in five of British households even considered moving their policy, despite being subject to a price increase that is above the rate of inflation.

Of those who have seen an increase above inflation (currently at three per cent) only 16 per cent had made a claim on their home insurance policy in the last year and a measly five per cent had increased their level of cover, indicating that many policy holders take the price increase without question.

Furthermore, of those who did shop around for a cheaper deal, only eight per cent failed to find a cheaper policy than their renewal quote. And, of those who failed to compare home insurance deals, just under half felt their insurance company had not given them sufficient time to do so.

According to the study, the average home insurance cover now stands at £283 meaning that Brits could have saved more than £26million had they shopped around and found new quotes.

Commenting on the research, Paul Baxter at Tescocompare.com, said: "The message behind this research is clear – many millions sleepwalk through their insurance renewal allowing their insurer to increase premiums unchallenged. 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."

© Fair Investment Company Ltd