You are here: Home - Insurance - News -

Avoid this costly home insurance mistake

Written by: Christina Hoghton
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.

Everything you wanted to know about ISAs…but were afraid to ask

The new tax year is less than a fortnight away and for ISA savers or investors, it’s hugely important. If yo...

Your right to a refund if travel is affected by train strikes

There have been a wave of train strikes in the past six months, and for anyone travelling today Friday 3 Febru...

Could you save money with a social broadband tariff?

Two-thirds of low-income households are unaware they could be saving on broadband, according to Uswitch.

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.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week