Overpaying on home insurance
British homeowners are overpaying on their home insurance by an average of £1.7 billion a year, according to figures from Barclays Insurance. This equates to a whopping £112.95 per household, made worse by the fact that most people don’t think about switching until the end of their current policy.
Premiums on household insurance can vary hugely, ranging from £195.73 to as much as £308.68. And while the switching trend has captured many Brits when it comes to energy providers and credit cards, 85% of consumers don’t even switch their home insurance at the annual renewal date.
Every month that customers stay on an uncompetitive insurance policy could cost them an average of £9.41, which quickly adds up to a considerable amount of money. Sticking with a more expensive provider for just six months for instance adds up to £56.46 in overpayments.
Mark Till, marketing director, Barclays Insurance, comments: “It is amazing to see that people are unaware how easily they can switch their home insurance to a better deal. And more importantly that it is not just an option when it is time for their annual renewal quote. We actively encourage people to shop around to find the best deal to ensure they get the best value home insurance.”