You are here: Home - Insurance - News -

Avoid this costly home insurance mistake

0
Written by: Christina Hoghton
17/05/2018
UK homeowners squander £230m a year by auto-renewing their home insurance.

UK homeowners are collectively wasting £230m a year by allowing their home insurance provider to automatically renew their policy, said Moneysupermarket.

The price comparison site revealed that over a quarter of UK homeowners with buildings and contents insurance allowed their most recent policy to automatically renew with their existing provider.

And nearly half of them (46%) saw premiums increase as a result, by £32 on average.

Chance to save

This is despite the fact that savings of 40% are available to customers who switch their home insurance provider.

The cost of home insurance policies has actually fallen over time, with the current cost sitting at £118 per year. If customers shopped around at renewal, they could see even higher savings of £43 each, or £313m collectively, by finding a more competitive provider.

Kevin Pratt, consumer affairs expert at Moneysupermarket, said: “Across all types of insurance, the message has always been clear: loyalty doesn’t pay. Some insurance companies rely on the fact that many people simply allow their policies to renew to push through a price increase. People need to get into the habit of switching every year – or at least running a comparison quote to check they’re not overpaying.

“Collectively, we spend over £230m more than we need to every year because homeowners allow their home insurance providers to renew their policy automatically – that’s money we can’t afford to waste. There are savings of up to £43 to be made per household by shopping around.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

YourMoney.com Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
2340824-premier-foods1r
Think tank argues ‘sin taxes’ will hit poor hardest

A summit to be held this week could increase taxes on food and drink deemed ‘sinful’, raising household bills across...

Close